VIP play in Macau has taken a devastating downturn over the past year, dropping as much as 40% in select markets. The drop has come at a critical time for Macau as they continue their plans to expand gaming operations over the next few years. The aftermath of this decline has in turn caused gaming revenues to fall and has jeopardized the profitability of Macau’s new expansions.
The decline in Macau’s VIP play proves to be caused by a migration of these customers to other areas in Asia and Australia. It is evident that Macau now needs to expand their focus. The question now becomes, what can Macau do to diversify their offerings and cater to the mass market? It is my opinion that to maintain profitability, Macau will need to position themselves in the marketplace not just as a gaming hub, but as a vacation destination. I plan to attend G2E in Asia this year and have been advised that the show’s concentration will be heavily focused on their expansion into nightclubs and bars. Will this be the next evolution of Macau? Only time will tell.
Michael Paulos
Senior Industry Specialist Team
VizExplorer
