Macau May Need to Scale Back on Slot Machines and Hotels

First thought of Macau should be a beautiful country that has developed into something beautiful, something magnificent, not something that has more slot machines than people. It isn’t quite that bad yet, but the way Macau is growing, it is going to kill itself and its rich heritage. Macau has been called the new slot machine capital of the world, the new Las Vegas, etc. However, they are competing in a slot machine world that Vegas wrote the book on.

When you get to Macau the first thing you see is that it looks like a construction site, and that there are more slot machine casinos going up daily it seems. The country is growing its slot machines and hotels at a rate that it just cannot keep up with. They are planning on opening another 30 slot machine casinos and 24,000 hotel rooms. The original intention was to give people a place to stay and play the slot machines, instead of doing day trips from Hong Kong.

However, the hotels are only 72% full now, what are they going to do with more slot machine casinos and more hotels. The amount of people coming to play the slot machines would have to grow 28% a year in order to fill all of the rooms. They need more than slot machines to keep them there as well – they need dining, shopping, all things that are being added, but not as fast as the slot machines and casinos are. One other thing that Macau needs to consider is the differences in slot machine and table revenues. Slot machines bring in 66% of Nevada revenue, and only 4% of revenue in Macau.

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