Singapore’s ability to generate gaming revenue of $4.5 billion from scratch in its second year begs the question of it stealing growth from Macau. Macau’s own growth in the same period and its massive scale of operations largely negate the concern. Macau is more likely to face self-inflicted cannibalization with its own planned expansion on the Cotai Strip.
Macau Visitors Slowing vs. Singapore, Yet Not Due to Singapore
Macau’s visitor growth rate declined in May, though the root cause doesn’t appear to be a migration of tourists to Singapore. While the island nation is benefiting from more Chinese travelers, its 150,000 to 200,000 monthly visitors are a fraction of the 1.3 million to 1.5 million going to Macau. Macau’s Guangdong visitors are down, though other provinces are up.
Transport Infrastructure Development Offers Macau Casino Jackpot
Opening access to China’s masses is a key strategy of the Macau government and casino industry. The high-speed rail build-out underway will avail millions of additional Chinese from inland and northern provinces the opportunity to visit Macau within a few hours. Macau will need to ease the bottlenecks in its immigration halls to take full advantage.
Singapore’s ‘Let Us Entertain You … and Then Gamble’ Strategy
Genting’s Resorts World Sentosa and Las Vegas Sands’s Marina Bay Sands, both in Singapore, are massive casinos, generating $4.5 billion in 2011 revenue. Expansion plans to draw visitors to the properties, though, emphasize non-gaming entertainment. Genting is more vocal about opening a marine park and expanding Universal Studios than its gamin business.