Casino Revenues in Asia Projected to Soar by 20 Percent in 2006
Buoyed by growth of Macau´s gaming industry, casino revenues in Asia are being tipped to increase by 20 percent to $13 billion this year. This was estimated as per a report by Las Vegas-based consultant Globalysis.
“The casino business is taking off in Asia, with several governments in the region eager to attract more tourists and earn receipts from gambling, the report said, adding that the boom is likely to attract further investment from US-listed casino companies. Some of the biggest names in the gaming industry, such as Wynn Resorts Ltd, Las Vegas Sands Corp, MGM Mirage and Harrah´s Entertainment Inc hope to generate about 20 percent of their revenue growth from Asia in the next decade,” Globalysis said according to media.
“Asia is home to the fastest growing market in terms of consumers that are able to participate in casino gaming activity due to their increasing levels of disposable income,” said Globalysis analyst Jonathan Galaviz in the report.
As per the information available, the forecast for Asian casino revenues compares with a total of $9.1 billion collected by casinos in Clark County, Nevada, which includes the Las Vegas strip and downtown venues, in the fiscal year ended June 2005.
All four major casino operators in Las Vegas have either invested in or are seeking investments in Macau –the former Portuguese enclave at the mouth of China´s Pearl River that has become a gambling centre for mainland Chinese tourists.
In a major development last year, Singapore lifted a ban on casinos last year and plans to build two casino resorts at an estimated total cost of $5 billion in order to attract more tourists and boost economic growth. Those in the fray for projects include Harrah´s Entertainment and Keppel Land; Las Vegas Sands and City Developments; Malaysia´s Genting International with Star Cruises; and MGM Mirage with Capitaland.
Japan, Thailand, Vietnam and Taiwan are likely to consider allowing the development of large casino resorts similar in scale to the two that Singapore is developing, the report said.
“These governments continue to grapple with the issue of whether they can protect and enhance their tourism position in Asia via the legalization of casino gaming activity,” the report said.
