Inside Asian Gaming

INSIDE ASIAN GAMING | May 2009 42 DSEC, Macau’s Statistics and Census Service, says Macau’s visitor arrivals totalled 5.45 million people in the first quarter of 2009, down by 9.6% year-on-year, but an improvement on the quarter- on-quarter decline from the final quarter of 2008. “City of Dreams is on track to open in June with 500 gaming tables. Launch of new casinos generally attracts traffic in Macau. For example, the opening of Venetian supported visitation growth of 29% YoY in September 2007, a month after opening,” points out the report. “Our Attractive Industry view is underpinned by visible signs of improvement in visitor arrival and gaming revenue, potential margin expansion based on cost-cutting measures, commission caps, and the belief of medium-term fundamentals being intact,” conclude the authors. Executives of SARs.” Revenue growth in key gaming markets such as Macau and Las Vegas is closely correlated with GDP growth in the national economy, add the researchers. “Our Chinese economist Wang Qing expects China GDP to recover in 2H09 on simulative effects from the multi-trillion-RMB fiscal package and expansionary monetary policy. The fact that Chinese GDP grew 6.1% YoY in 1Q09, above our economist team’s (5%) forecasts, also offers some encouragement on the outlook for the Chinese economy,” says Morgan Stanley. The analysts say there is evidence in the quarter on quarter growth in revenue and visitors seen in the first quarter of 2009 to support the idea that the Macau market has found the bottom of the market. Macau Market LV Gaming Revenue Growth during US Recessions Macau Growth High Correlation with HK/China GDP Source: Company data, Morgan Stanley Research Source: Company data, Morgan Stanley Research A Sure Bet Log onto www.asgam.com for the latest industry intelligence and a subscription to our digital edition — all absolutely free.