Macau Slows Down

11/03/2008		Macau Slows Down
Home History Games News Dictionary		For months, Las Vegas casino and resort executives have watched as Macau began to burst at the seams, overwhelmed with the amount of development going on, building the area to be the new major world competitor for luxury entertainment. Finally, it seems like breathing might become easier as the numbers begin to slack off late in the fall season. Up until the last couple of months, economic struggles have been seen by experts to be something unique to the United States. Macau’s revenue continued to soar, customer spending seemed nearly unaffected a half a world away from the American recession. Recent weeks, however, have showed that the financial crisis has grown to a point that the trickle down is affecting even the “new” Las Vegas: Macau. The third quarter reports have come back to show that casino gambling monies were down a solid 10% this past period. According to the Macau Gaming Inspection and Coordination Bureau, comparisons of the profits and numbers from this time last year to 2008 revealed a loss of almost $3.2 billion- a significant shift. The damage done to the world’s credit is being held responsible for the major loss. Las Vegas, being within the continental United States, has felt the more immediate effects of the credit crisis, but the scale’s growth has transcended distance, putting even unstoppable Macau in a wary position. With so many new casinos and projects still in development, the lack of longevity would add complications if too drastic a dry spell would plague the region. Some companies who had been planning on developing and expansion in Macau have already had second thoughts. Sheldon Adelson of the Las Vegas Sands, in an interview with Reuters, said that they now plan on scaling back the $5.25 billion expansion that has been in the works for a Cotai Strip location.

11/03/2008

Macau Slows Down

For months, Las Vegas casino and resort executives have watched as Macau began to burst at the seams, overwhelmed with the amount of development going on, building the area to be the new major world competitor for luxury entertainment. Finally, it seems like breathing might become easier as the numbers begin to slack off late in the fall season.

Up until the last couple of months, economic struggles have been seen by experts to be something unique to the United States. Macau’s revenue continued to soar, customer spending seemed nearly unaffected a half a world away from the American recession. Recent weeks, however, have showed that the financial crisis has grown to a point that the trickle down is affecting even the “new” Las Vegas: Macau.

The third quarter reports have come back to show that casino gambling monies were down a solid 10% this past period. According to the Macau Gaming Inspection and Coordination Bureau, comparisons of the profits and numbers from this time last year to 2008 revealed a loss of almost $3.2 billion- a significant shift. The damage done to the world’s credit is being held responsible for the major loss. Las Vegas, being within the continental United States, has felt the more immediate effects of the credit crisis, but the scale’s growth has transcended distance, putting even unstoppable Macau in a wary position. With so many new casinos and projects still in development, the lack of longevity would add complications if too drastic a dry spell would plague the region.

Some companies who had been planning on developing and expansion in Macau have already had second thoughts. Sheldon Adelson of the Las Vegas Sands, in an interview with Reuters, said that they now plan on scaling back the $5.25 billion expansion that has been in the works for a Cotai Strip location.