Post by Blitz on Nov 20, 2024 10:18:09 GMT -5
Macau’s economic diversification aims to “grow the pie,” not suppress gaming industry: CE
Viviana Chan - November 19, 2024
agbrief.com/news/macau/19/11/2024/macaus-economic-diversification-aims-to-grow-the-pie-not-suppress-gaming-industry-ce/
Reducing the gaming industry’s share of Macau’s gross domestic product (GDP) has become a key metric in the city’s efforts toward economic diversification, and operators are doing their part, says the outgoing Chief Executive.
Macau Chief Executive Ho Iat Seng emphasized that the government’s objective is to “grow the pie”—to expand the overall economy so that the gaming sector’s proportion of GDP naturally declines, rather than actively shrinking the industry itself.
At a press conference summarizing his five-year term on Tuesday, Ho highlighted that the gaming industry’s contribution to Macau’s GDP had dropped from a peak of over 60 percent to 37 percent in 2023. He anticipates the share will stabilize at around 40 percent this year, which he described as a “healthy” level.
Reflecting on the city’s recent gaming concession renewal process, Ho noted that operators were required to invest over MOP100 billion ($12.5 billion) in non-gaming projects as part of their new licenses. He acknowledged the severe challenges gaming companies faced during the pandemic, calling the concession process particularly “arduous.”
Under the 10-year gaming concession contracts, which began in January 2023, Macau’s six casino operators initially pledged a collective MOP108.7 billion ($13.5 billion) for non-gaming investments. This commitment was later increased by 20 percent after the city’s market-wide casino gross gaming revenue (GGR) exceeded the predetermined threshold of MOP180 billion ($22.56 billion) for the full year 2023.
TNT concerts MICE Galaxy Macau
Operators’ efforts praised
Macau’s six gaming operators are making strong efforts to bring prestigious concerts and shows to the city, aiming to rebrand Macau from a gaming hub to a city of entertainment.
Ho also praised the gaming industry’s efforts to transform Macau into a “City of Performance.” He recognized the initial success of the city’s burgeoning concert industry, highlighting how major operators have brought internationally renowned artists and performances to Macau, significantly enhancing its global reputation.
Meanwhile, the Chief Executive noted the government’s anticipation of a shift in visitor patterns after the pandemic. He emphasized that the administration has consistently prioritized non-gaming investments by the operators to support this transition.
To address land constraints that limit large-scale event development, the government has built a 50,000-capacity outdoor venue in Cotai. Ho announced that its first concert is scheduled for December 28th, though further details remain undisclosed.
Macau tourism, golden week, October golden week
34M visitor arrivals expected this year
This year’s gaming revenue is expected to surpass initial forecasts, according to Macau’s leader.
The government’s budget projects gaming revenue to reach MOP216 billion in 2024 ($27.07 billion), with further growth to MOP240 billion ($30.1 billion) by 2025. Ho Iat Seng indicated that monthly gaming revenue from January to October averaged MOP19 billion ($2.4 billion), exceeding the budgeted estimate of MOP18 billion ($2.3 billion).
Annual visitor arrivals are now expected to hit 34 million, surpassing the Macau Government Tourism Office’s (MGTO) earlier forecast of 33 million. This marks a robust recovery in the tourism sector.
Macau visitor arrivals YOY 2024
Looking ahead, while gaming revenue for 2024 is forecasted to grow by 11 percent year-on-year, the government has taken a cautious approach by increasing its overall budget by just 6 percent—signaling prudent fiscal management.
Viviana Chan - November 19, 2024
agbrief.com/news/macau/19/11/2024/macaus-economic-diversification-aims-to-grow-the-pie-not-suppress-gaming-industry-ce/
Reducing the gaming industry’s share of Macau’s gross domestic product (GDP) has become a key metric in the city’s efforts toward economic diversification, and operators are doing their part, says the outgoing Chief Executive.
Macau Chief Executive Ho Iat Seng emphasized that the government’s objective is to “grow the pie”—to expand the overall economy so that the gaming sector’s proportion of GDP naturally declines, rather than actively shrinking the industry itself.
At a press conference summarizing his five-year term on Tuesday, Ho highlighted that the gaming industry’s contribution to Macau’s GDP had dropped from a peak of over 60 percent to 37 percent in 2023. He anticipates the share will stabilize at around 40 percent this year, which he described as a “healthy” level.
Reflecting on the city’s recent gaming concession renewal process, Ho noted that operators were required to invest over MOP100 billion ($12.5 billion) in non-gaming projects as part of their new licenses. He acknowledged the severe challenges gaming companies faced during the pandemic, calling the concession process particularly “arduous.”
Under the 10-year gaming concession contracts, which began in January 2023, Macau’s six casino operators initially pledged a collective MOP108.7 billion ($13.5 billion) for non-gaming investments. This commitment was later increased by 20 percent after the city’s market-wide casino gross gaming revenue (GGR) exceeded the predetermined threshold of MOP180 billion ($22.56 billion) for the full year 2023.
TNT concerts MICE Galaxy Macau
Operators’ efforts praised
Macau’s six gaming operators are making strong efforts to bring prestigious concerts and shows to the city, aiming to rebrand Macau from a gaming hub to a city of entertainment.
Ho also praised the gaming industry’s efforts to transform Macau into a “City of Performance.” He recognized the initial success of the city’s burgeoning concert industry, highlighting how major operators have brought internationally renowned artists and performances to Macau, significantly enhancing its global reputation.
Meanwhile, the Chief Executive noted the government’s anticipation of a shift in visitor patterns after the pandemic. He emphasized that the administration has consistently prioritized non-gaming investments by the operators to support this transition.
To address land constraints that limit large-scale event development, the government has built a 50,000-capacity outdoor venue in Cotai. Ho announced that its first concert is scheduled for December 28th, though further details remain undisclosed.
Macau tourism, golden week, October golden week
34M visitor arrivals expected this year
This year’s gaming revenue is expected to surpass initial forecasts, according to Macau’s leader.
The government’s budget projects gaming revenue to reach MOP216 billion in 2024 ($27.07 billion), with further growth to MOP240 billion ($30.1 billion) by 2025. Ho Iat Seng indicated that monthly gaming revenue from January to October averaged MOP19 billion ($2.4 billion), exceeding the budgeted estimate of MOP18 billion ($2.3 billion).
Annual visitor arrivals are now expected to hit 34 million, surpassing the Macau Government Tourism Office’s (MGTO) earlier forecast of 33 million. This marks a robust recovery in the tourism sector.
Macau visitor arrivals YOY 2024
Looking ahead, while gaming revenue for 2024 is forecasted to grow by 11 percent year-on-year, the government has taken a cautious approach by increasing its overall budget by just 6 percent—signaling prudent fiscal management.
