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Macau Becoming the Las Vegas of Asia

Close to an estimated US$7.4 billion worth of new development, centered around entertainment and casinos, has transformed the sleepy backwater of Macau into a hive of activity.

China’s strategy is to turn Macau into the Las Vegas of Asia, according to a report by Hong Kong-based UBS Investment Research, "Macau Gaming – Let the Games Begin". It says the political incentive is driven by the upcoming 10th anniversary of Macau’s handover to China in 2009. UBS says a common language, proximity (with a billion people within three hours’ flight time), and the limited variety of entertainment venues in China, give Macau a competitive advantage. The report adds that China’s economic growth provides a sustainable base for gaming enterprises in Macau. Last year, Macau earned US$5.4 billion from gaming – narrowly beating the Las Vegas Strip (US$5.3 billion) as the world’s largest gaming center.

A pivotal decision by the Macau government – to end a 40-year monopoly on casino operations in 2002 by granting three new licenses – triggered the current development boom in Macau.

Read the entire article at: Asia Times 

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