Olympics May Distract Tourists from Macau Casinos
Few things seem able to slow the rising tide that is Macau casino revenue. Growth has been so overwhelming, the Chinese government has taken several drastic measures to alleviate problems with infrastructure, labor, and inflation, and yet gambled monies continue to increase.
But an outside event may actually result in a lull period for Macau, in which gambling income temporarily slows its pace of expansion. The Olympics are coming to Beijing, and Olympic fever is already spreading throughout China.
Macau depends greatly on Asian and particularly Chinese tourists to drive its casino business. But this August, Chinese citizens may opt to spend off time in front of television sets, rather than travelling to the gambling enclave.
Some had floated the idea that Macau may benefit from extra visitors to the Orient, coming for the Olympics but wanting a gaming experience as well. However, logistics preclude that possibility from amounting to a group of any size; Macau is over 1300 miles from Beijing. Proposing Olympic fans would also schedule a Macau trip would be the equivalent of suggesting a Las Vegas side trip while in Chicago.
The Olympic experience is reaching Macau, as the USA basketball team plays a couple exhibitions at the arena in the Venetian Macau. But any gambling attendance drawn by the Olympics is sure to be more than offset by the loss of Chinese tourists.
As the government moves to limit visas and restrict travel in order to control the flow of people through Macau, the minor setback presented by the Olympic distraction may be a good time for the casinos to practice what must be their future business model. Growth will certainly be allowed by China, but its pace will be measured and controlled.
