AERL’s slide demonstrates the volatility that will always be a part of Macau’s VIP market – and that’s leaving aside the wild card of political interference from Beijing. On Sunday, Macau Legislative Assembly VP Ho Iat Seng attempted to temper concerns that have arisen following the detention of some Macau junket operators last month. Ho, who is Macau’s sole member of the Standing Committee of the National People’s Congress in Beijing, was quoted by Macau News describing China’s newly elected Communist Party leader Xi Jinping as someone who “knows Macau well” and “will further improve cooperation between Macau and Guangdong.” Ho said Xi placed a great deal of emphasis on Macau’s development. Only time will tell if Ho’s words represent the sober voice of calm or mere whistling through the graveyard.
Macau’s VIP market may have slackened of late, but the mass market segment has continued to show good growth throughout 2012. Nicholas J. Niglio, CEO of market leading junket operator Neptune Group, believes the mass market mouse has yet to truly roar. Using his home country as an example, Niglio told The Standard that 15% of US residents visit Las Vegas, whereas just 2-3% of China’s mainland residents currently hop the ferries to Macau. Niglio believes continued development of the Cotai Strip into a Vegas-caliber entertainment destination will help push China’s visitor percentage closer to its US counterpart. For the record, the US has a population of 315m, of which 15% is 47m. China has a population of 1.3b, of which 15% is 195m. Better hope the guys building that long-delayed new ferry terminal get the lead out…