Inside Asian Gaming

INSIDE ASIAN GAMING | January 2012 4 The lunar-based festival of Chinese New Year—this year on 23rd January—marks the beginning of the Year of the Dragon. Chinese New Year has come successively earlier in the Gregorian calendar since 2010, when it fell on 14th February (the Year of the Tiger). In 2011, it fell on 3rd February (the Year of the Rabbit). The last time Chinese New Year was celebrated in January was in 2009, when it arrived on 26th January (the Year of the Ox). Macau casino executives tell Inside Asian Gaming that having Chinese New Year early in the Gregorian New Year can adversely impact visitation, with insufficient time between the two holidays for players to plan for and make two trips to Macau. In 2009, visitor arrivals to Macau in January and February combined declined 8.5% year- on-year. Although visitor arrivals declined 5.2% in 2009 as a whole, the early arrival of the Year of the Ox clearly exacerbated the slump. In 2010, when Chinese New Year returned to February, visitor arrivals in January and February combined rose 15.0%, slightly outpacing the 14.8% growth for the whole year. Even though the Year of the Dragon will commence in January, the timing is not all bad, according to Union Gaming Research. In a research note, it pointed out: “The week-long Chinese New Year (‘CNY’) holiday officially begins on Monday, 23rd January, so the holiday will also enjoy the benefit of getting a head start as of Friday night, 20th January. This effectively extends the holiday period by an additional two days as compared to last year. In 2011, the holiday period began on Thursday, 3 February and therefore did not receive the benefit of a free weekend at the beginning or end. We note that while the PRC officially recognises the CNY holiday as only three-days, it is commonly celebrated for seven days (the first of two annual ‘Golden Weeks’).” Union Gaming Research Macau forecasts Macau’s gross gaming revenue to reach MOP28-29 billion (US$3.5-3.6 billion) during January 2012. It states: “This would imply 51% to 56% growth as compared to the previous January and 41% to 46% growth as compared to the previous February, which included CNY 2011. Further, GGR of MOP28bn to 29bn would be 4% to 8% higher than the Cover Story The newly upgraded high-limit area at The Venetian Macao was unveiled on 7th January, featuring 23,000 square feet of table and slot games Cream of the Mass The Venetian Macau upgrades its expansive high-limit area, as all of Macau’s casino operators vie to develop their premium mass revenues