Macau has set an ambitious long-term goal to wean itself off gaming as an economic driver and become a major metropolis and travel destination that will draw tourists from around the world.
But casinos are still the main attraction, with Macau Chief Executive Ho Iat Seng predicting that gross gaming revenue (GGR) in the Chinese casino city will reach MOP$216 billion (US$26.8 billion) in 2024.
“This will serve as the main revenue base for the Macau government in the 2024 financial year,” Ho said. He added, “With the introduction of more innovative tourism elements to Macau and the further development of the mainland and international visitor source markets, the number of visitors to Macau is expected to continue to rise.”
The government expects to reap revenues of MOP$107.1 billion (US$13.3 billion) next year versus a budget of MOP$105.9 billion (US$13.1 billion), putting the city back in the black.
Macau took it on the chin during Covid-19, with economic forecasts all falling well short of the projected MOP$130 billion (US$16.1 billion) set during each year of the three-year period. In 2020, the city took in MOP$60.4 billion (US$7.5 billion), followed by MOP$86.8 billion (US$10.8 billion) in 2021 and MOP$42.2 billion (US$5.2 billion) in 2022.
But since the borders reopened in early January, gross gaming revenues (GGR) have rebounded beyond the city’s budget, according to Inside Asian Gaming. On November 1, next year’s budget was presented in Macau’s Legislative Assembly. It stated, “With the receding of Covid and the gradual return to normal socioeconomic conditions, the number of tourists coming to Macau has increased significantly compared to 2022.” Tourism, chiefly visitation from mainland Chinese, is the backbone of the industry in Macau, the only region in China where casino gambling is legal.
Meanwhile, as reported by the Macau Post Daily, the local government has finalized a plan to diversify the economy beyond gaming with its “1+4” model. The plan aims to diversify the city’s tourism and leisure industry by promoting four new key industries: 1.) big health; 2.) modern finance; 3,) high tech; 4.) and meetings and conventions, commerce, culture and sport.
In related news, Macau News reports that lawmakers are pushing for a gaming credit bill to take effect early next year. The legislation would prohibit casino management companies—such as those running satellite casinos on behalf of the Big 6 gaming concessionaires—from extending credit to gamblers. It includes stiff fines for companies that run afoul of the rules.
