Australian casino investments in Macau | Is it big business?

Australians are renowned for their gambling habits and have experienced first hand the revenue that can come from a successful gambling industry. It is not surprising then that the big players were keen to take advantage of the new business opportunities in Macau. According to statistics, international tourists who visit casinos spend around $4.9 billion during their time in Australia, an average of $4940 per visitor compared to $2630 by international tourists who do not visit casinos.

Macau, Australia

Macau, Australia

James Packer inherited a $5 billion empire from his father Kerry Packer in 2005, whose fortune was built on media assets. This was invested into the gaming business Melco Crown Entertainment Limited, also known as Melco Crown, which is one of Australia’s leading entertainment groups who specialise in integrated resorts. They own two successful casinos; the Crown Entertainment Complex in Melbourne and the Burswood Entertainment Complex in Perth. With so much accomplished on home soil, the company invested in overseas opportunities including Aspinalls Club in London and, recognising the huge investment opportunity in Macau, they opened casino and hotel properties which include City of Dreams, Altira Macau and Mocha Clubs. Melco Crown also has a 60% interest in Macau Studio City, a new large scale integrated resort project on Cotai. Those who work and invest in the casino industry recognised the potential of Macau as a casino destination and, in doing so, were rewarded with revenue growths of up to 58%. However, these same investors will be feeling the strain with the sudden drop to a predicted 3% in revenue growth threatening the industry worldwide.

Some believe that this decline in visitors and revenue is the direct result of the online casino boom, especially when online casinos are easily targeted to each audience and open around the clock. A New Zealand gambler, for example, can enjoy gaming in an online casino in his own currency and whenever he feels like it. However, some believe that this lapse in business is temporary and that online casinos could actually see an increase in visitors to real-life casinos, as they have made casinos current and have broadened the target market. And with Macau offering great promotions to entice visitors from neighbouring countries who are already known for enjoying the industry, such as Australia, investors could actually start to see an upturn in the market.

Macau photo: Around the world with kids

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Categories: Nightlife

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