A Tour Of Macau’s Cotai Strip

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Tuesday, June 20th, 2017 | Written by Stephen Smith

The Cotai Strip is a piece of land found on the Chinese island of Macau, that is packed full of hotels, casinos and other such entertainment venues for visitors to enjoy. It originally received its name by the Las Vegas Sands Corporation, a US casino company that has played a huge role in the overall growth of China’s only legal gambling resort.

Origins

The Cotai Strip occupies a preeminent position in the development of Macau as a popular gambling and tourist destination, with its origins linked to a large reclamation land project initiated by the Macau government. The development subsequently got underway in 1984, with the vision behind the project being to link Taipa and the Coloane islands.

Twenty years later, the strip then opened its first casino, the Sands Macao, which is owned by the Las Vegas Sands Corporation. At the time, the project was seen as a huge gamble for the operator, but once opened for business it soon started reaping big rewards, thus paving the way for a lucrative gambling industry to emerge in Asia.

The Galaxy Entertainment Group then opened up the Grand Waldo Hotel in 2006, now renamed the Broadway Macau, while just one year later, the Last Vegas Sands Corporation opened up another property, the Venetian Macao Resort, which has since become one of the most iconic casinos on the Cotai Strip. Over the ensuing years, numerous other casinos have opened up for business, too, including in 2009 the Melco PBL Holdings owned City of Dreams opening on the Cotai Strip right opposite to the Venetian Macao.

Lucrative Location

The Las Vegas Sands Corporation made a well judged strategic move by deciding to fully embrace Macau as a key element in its business model, as the company’s Macau-based revenues far overshadow the revenues generated by its venues located in the United States. In fact, almost 90% of Sands’ revenue are derived from Macau, or around $8 billion. Needless to say, the Cotai Strip is now packed full with high-end casino resorts, including Galaxy Macau, Plaza Macao, Studio City Macau, Sands Cotai Central along with Wynn Palace. All of these properties have a large range of bars, hotels, restaurants and entertainment venues, with huge venues such as Sands Cotai Central and Galaxy Macau functioning more like small cities.

In 2016, Galaxy Macau subsequently reported revenues that beat their forecast of $809 million, and came in at 51 percent higher than the previous year. Counted amongst the many attractions and facilities contained within the property are JW Marriott Hotel, Banyan Tree Macau, Hotel Okura Macau and The Ritz-Carlton Macau. It also includes the Promenade Shops, The Grand Resort Deck and UA Galaxy Cinemas.

More Than Just Gambling

The Cotai Strip offers visitors a lot more than just gambling, including its high quality food and drink venues, for instance, which serve as a major tourist attraction, as does its nightlife area that includes the Climax Club. In other words, the Cotai Strip is a destination that extends far beyond gambling and crosses into culture, with The Broadway Theatre recreating the experience of its New York counterpart, and the Boulevard at Studio City another notable shopping location.

In the meantime, developments still continue at a break-neck speed, and MGM Resorts International plans to open up its first casino property soon, while XIII Holdings is even planning on bringing its own own Louis XIII property to the Cotai Strip. Other projects in the pipeline includes SJM Holdings’ Lisboa Palace venue, as well as a Macau Theme Park. Bustling and alive, the Cotai Strip is certainly an impressive and entertainment rich region of Macau that is sure to attract greater numbers of tourists to the island in the future.

Gambling Revenues Improving

Gambling revenues in Macau are on the rise, in the process instilling optimism and confidence in the Strip. The turnaround occurred in August of 2016 following Macau’s casino market having experienced 26 months of contracting revenues. In 2013, for instance, gambling revenue was higher by 19% at $45.2 billion, but by 2014 business was down by 2.6% to $44.1 billion, followed in 2015 by a sharp 34.3% contraction in revenue to $28.93 billion. In 2016, however, revenue suffered just a 3.3% decrease $27.95 billion, and analysts are now forecasting positive growth for 2017.