Macau’s economy continues to dwindle as gambling market is reaching an all-time low in its history. Even worse, the short end of the stick seems to have been drawn by the VIP sector of the business.
Most operators are not only continuing to lose money due to this steady decline, but are also predicting that, even if the market stabilizes, the VIP section will not regain its shape. The month of August represent the 15th straight month during which this decline has been unraveling.
The situation is gray in all directions but the VIP section seems to have suffered the most. Experts in the field and data analysis companies are predicting that the decline will end and a growth period will commence, but at the expense of the VIP sector, since the economy will take quite some time to recover.
Wells Fargo data analysis firm stated that “visibility into 2016 appears to be limited” and although the gaming trends are seemingly stabilizing, it is not yet possible to predict the full outcome of this huge decline. Overall, in August the gaming market had fallen about 30.3%. The VIP sector has seen a 54% decline which is indeed far worse than what the general situation is at present.
The company, after consulting with known casino operators, concluded that the “VIP play in Macau may never fully come back, citing a liquidity crunch and tighter policy toward Macau.”