December Gambling Revenues in Macau Well Above Forecasts

Macau gambling revenues hit new record of 28.25 billion patacas ($3.54 billion) in December last year exceeding the forecasts with an increase of 19.6% and significantly contributing to the annual revenue which reached $38 billion at the end of 2012, according to the Reuters news agency.

The festive season had positive impact on the revenues in the Chinese gambling mecca, signalizing a temporary recovery from the downward trend which persisted during the bigger part of the year. Namely, 2012 was marked by country's slowed economic development, lower spending by VIP customers, strict examination of money transfers and the fight against corruption.

In view of the statistics showing that the 2012 annual gambling revenue rose 13.5% compared to 2011 when revenues went up 42.2%, analysts caution that there may be further constraints during 2013.

The concerns are mainly attributed to a new anti-smoking rule to be valid as of 2013, tighter monitoring of the VIP junket market and no new supply planned to open in Macau for the next two years.

"Higher spending by China's burgeoning middle class has been a key factor in propelling revenue gains in 2012, offsetting a slowdown in VIP growth. Whether volumes in the high end VIP market will stabilise and accelerate further on the back of stronger economic growth is an issue over which analysts remain cautious," Reuters further reports.

According to industry executives, estimated gambling revenue growth for 2013 will range between 5% and 10%, while the central government aims to maintain Macau's growth at the level of country's GDP rate.

Still, analysts remain positive about Macau's prospects, primarily relying on China’s improving economy and construction of infrastructure system that will speed-up the journey from the mainland to Macau.

Local officials also plan to expand the gambling-dependent hub by introducing new leisure offerings with a view to attract a wider visitor base. One of the government projects launched in November introduces a wedding incentive scheme that grants 300 patacas per local guest for their activities in Macau.