Macau Casinos Still Shy of 95 Percent Chinese Patrons
Macau is undoubtedly Asia’s largest casino hub, with patrons swarming in from all over the world. But demographics of casino visitors in Macau have a far more convincing story to tell. While Macau continues to attract gamblers from all over the globe, the Chinese patrons have a special place in the equation. A recent survey revealed that an average Chinese customer is 36 years old. Such a customer is most likely to be a male and hailing from a developed Chinese city.
What’s the reality?
But, in reality, Macau’s casinos are yet to attract 95 percent of China’s mainstream players, as revealed by the survey. The Sanford C. Bernstein brokerage published its “premium consumer usage and attitudes survey 2017”, which revealed that a 36-year-old average Chinese gambler visits Macau three times in one year.
If we are to talk about the earnings of these gamblers, the numbers are even more staggering. The survey found that an average gambler from China earns a monthly amount of about RMB 19K (US$ 2,900) but keeps a budget of about RMB 20K for gambling in Macau. Talking of accommodation, a Chinese gambler in Macau tends to move towards rooms in Sands China properties, a company focused on properties meant for the mass market. More affluent of gamblers tend to frequent properties under the management of Wynn Resorts and Melco Resorts and Entertainment.
So, are there many Chinese gamblers in Macau?
But the predictions of the brokerage doesn’t look favorable for casino properties. It noted that gamblers at SJM Holdings belong to an aging demographic, making the inauguration of the new Grand Lisboa Palace an urgent call. The launch of these properties has been pushed to the end of 2018 after it became a site of a fire accident last month.
The survey shows that Macau has only been able to tap into 5 percent of the mainstream Chinese consumer market, leaving a lot of scope for growth in the future. The brokerage expects that the compound annual growth rate of Macau’s gaming revenue will be close to 6.4 percent in the next 10 year, with mass-market gambling rising 8 percent and VIP gambling rising 4.8 percent.
The brokerage notified earlier that the so-called “premium” consumers– gamblers earning more than RMB 25K a month– would experience a compound annual growth rate of 28 percent over the next five years, increasing from 4.7 million in 2016 to 16.2 million by the end of 2021.