Packer Hoping Hotel In Macau Improves Casino Profits

Revenue has been down for all casinos throughout the world because of the global recession. Melco Crown Entertianment has seen their casinos fall even further than other companies, and James Packer is preparing to do something about that.

Packer is gambling on a new hotel in Macau to help boost revenue at one of his Macau casinos. City of Dreams will be receiving their latest improvement next month, the 800 room Grand Hyatt macau. Packer is hoping that by giving customers free rooms, revenue will increase.

"There absolutely is a connection between having customers sleep at the casino and having higher revenue," said observer Larry Bell, "when a customer does not have to drive anywhere after they leave the casino, they usually drink and consequently, gamble more."

Las Vegas casinos have been built on the premise of keeping their customers at the casino for as long a period time as possible. It is commonplace for these casinos to offer free rooms to their high wagering customers. Having the customers at the facility for over twenty-four hours at a time only helpsd revenue figures.

Melco Crown has just announced their second quarter figures and the picture was not pretty. The company, which had a profit in the second quarter of lat year of $36 million, lost $24 million this year. The lack of revenue in Macau had a large part to do with those figures.

In the next year, Packer and his company are hoping that the Chinese government once again eases visa restrictions on their residents. The company is also banking on the hotel, and a turnaround in the economy to help boost revenue.

August 8, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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