Investing in Macau: Q1 Revenue Skyrockets 44%
By Ian L. Cooper
Shares of Macau-related companies surged after the Chinese government reported that Q1 gaming revenue soared some 45% to a record $2.23 billion in the bustling boomtown. Should it maintain that level of revenue growth per quarter, the boomtown will easily overshadow 2006’s gross revenues of $7.2 billion by 24%. And that, my friends, shouldn’t be a problem at all.
Growth is not a problem for the bustling boomtown of Macau. Here’s a growing region preparing to welcome a historic 25 million visitors this year alone (a 173% jump in visitor growth from the 9.16 million visitors in 2000).
The boom is far from over, as the easing of Communist-era travel restrictions, especially in China, combined with the explosive growth of wealth and prosperity unleashed by capitalism, drives millions of visitors to Macau. Plus, more than a billion people live within a three-hour flight, and another 100 million are located within a three-hour drive, according to Macau Business News. Growth, again, is not a problem.
The best part -- Macau isn’t just known as the next Vegas by locals; it’s known as the next hot Vegas-style opportunity by handfuls of billionaires, including Steve Wynn and Kirk Kerkorian, who are pouring billions into the region. The area already boasts 24 casinos with more than 2,700 tables and is only expected to expand further with more restaurants, casinos, hotels, you name it.
Indeed, there’s plenty to get excited about. As a reflection of this growth, the unemployment rate in Macau at the close of 2006 was 3.5%, compared to 4% in 2005 -- thanks to the large numbers of jobs that are now available in gaming, hotel, retail, and restaurant sectors.
Take care,
Ian L. Cooper, Editor, Early Alert Trader
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