Surprisingly enough, the situation in the overseas markets has been one of the keys to the business success of the City of Lights’ gambling resort.
The editor of the Norwegian news portal Norskenyheter.com suggests that Las Vegas’ gaming industry owes a great debt to… Macau. And if you ask how in the world it’s possible, the answer would contain numbers with nine zeros standing for billion dollar revenues coming from one of Asia’s largest autonomous financial centres that saved the Sin City’s casino gaming industry from a bad break in the times of the economic stagnation.
What is, however, happening to the Macau’s gambling area is the slump of its earning capacity, while governments of other countries in the region, ironically, adopt laws redounding to the benefit of local gambling markets, and even establishing brick-and-mortar casino houses.
How big has been the influence and contribution of the Asian markets to the prosperity of casino businesses in Las Vegas, the city recognized as the gambling capital of the world? As admitted by Mr. Jonathan Galaviz, a Las Vegas Global Market Advisors partner, it would have been impossible for Nevada to enjoy the success that big if it wasn’t for Macau’s developed casino gaming service industry. Having confirmed Asia’s significant financial effect on the US gambling stronghold evading smash-up, Galaviz mentioned the latter being a real star to steer by for the Asians, who try to employ Vegas’ winning formula in their domestic markets. This is not just limited to gambling alone, as, in Galaviz’s words, his company has “been able to successfully develop” the so-called “integrated resort” model drawing on the “idea that tourism and visits to Las Vegas is something more than just casino gaming”.
Anyway, it’s just the other way round for Nevada businesses, Galaviz continues. Their goal now is searching for new opportunities for worldwide growth, with a special focus on Asia, driving the potential visitors of China straightway to Macau. Galaviz describes the current situation with Chinese tourists who “have a choice to go Singapore [or] the United States” as “global competition […] occurring”, and he thinks it’s a real challenge for Vegas to do everything humanly possible to engage with these tourists explicitly already at the stage when they’re just planning their vacation so as to attract them to Nevada’s gambling paradise eventually. Apart from just magnetizing tourists to Las Vegas, eating into Asian markets, as expected by Galaviz who sees it as a truly global “expansion of the casino gaming industry”, will impact the economy “here in Southern Nevada”, i.e. the city and the surrounding area “in a positive way”. Speaking about the numbers behind the mutual influence of the markets, Mr. Galaviz says about 1/10 of all gambling field’s corporate jobs are indebted for their existence to the presence of the Las Vegas companies in the markets of the Asian region. The opposite is also true, and a good example of that is Genting Group, a Malaysian business giant, building a brand new casino/hotel complex in the City of Lights.
On December 14th, Galaviz will be taking a closer look at the advantageous yet challenging bonds between the gambling sectors of Asia and Nevada at the 2016 Economic Outlook Conference to take place at the UNLV Lee Business School’s Center for Business and Economic Research.