Wynn, LVS, MGM Cheer as Macau Makes Big Investments in Infrastructure

by Trefis Team
Las Vegas Sands
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The Macau government is reinforcing a series of initiatives in order to drive visitor growth in the region. Gaming industry is a key contributor to Macau’s GDP. The government is investing in new transportation links to ease travel for Chinese visitors. According to the Macau Statistics and Census Service Monthly Bulletin of Statistics, approximately 89% of the tourists who visited Macau in 2011 came from Mainland China, Hong Kong and Taiwan. Macau’s casino industry reported record growth in revenues of approximately 42% in 2011 to $33.5 billion. Prominent casino players including Wynn Resorts (NASDAQ:WYNN), Las Vegas Sands (NYSE:LVS) and MGM Resorts International (NYSE:MGM) have presence in the region.

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Key Infrastructural Initiatives Underway

The Macau government is working on several initiatives to boost visitor count.

Let’s have a brief look at these initiatives:

  • The Guangzhou-Zhuhai high-speed railway is expected to improve travel time from Guangzhou to Macau to 40 mins, down from 2+ hours by bus. It was partially completed in 2011.
  • The Macau Light Rapid Transit will link ferry terminals and key locations. It will have 12 stops on the Macau peninsula, 11 stops on Cotai and Taipa and will fully integrate different regions within Macau. It should be completed by 2015.
  • The Hong Kong-Zhuhai-Macau bridge will connect Hong Kong to Macau, thereby, reducing car travel time from 4 hours to 40 minutes. It is expected to be completed by 2015-2016.
  • The Macau International Airport is presently undergoing capacity upgrade. Its capacity will be increased to handle 12 million people per year almost double from the current capacity of 6 million people. It is expected to be completed by 2017.

We believe all these infrastructural developments are well thought of and are foresighted in nature. They will surely drive visitor count in Macau and will further bolster the growing casino industry which heavily depends on visitor count.

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