Founding Partner Steve Gallaway was featured in iGamingBusiness on Macua’s Reliance on Gambling Revenue
Macau chief executive Sam Hou Fai says he will continue to review non-gaming investments from the city’s Big Six casino concessionaires in seeking to reduce reliance on gambling revenue.
In his second policy address since taking office last December, Macau chief executive Sam Hou Fai has reiterated his pledge to review concessionaires’ non-gaming investments.
Through 2032, those investments will total an estimated US$16 billion. They are part of a larger strategy to shore up the local economy and reduce Macau’s reliance on gaming.
Through its “1+4” development strategy, Macau is committed to the growth of the medical, technical, finance and events sectors. Together, they are expected to strengthen the hospitality industry and support Macau as a global tourism destination. The government has set a target to derive 60% of gross domestic product from non-gaming attractions by 2028. It’s an ambitious goal, as in 2019 they contributed just 16% of GDP.
Can Macau reach its target of 60% non-gaming GDP by 2028?
“Unfortunately, this is unrealistic,” Steve Gallaway of GMA Consulting told iGaming Business. “It’s customer preference-driven. While significant enhancements and offerings of non-gaming products will help diversify the economy, gaming will still receive the majority of customer spend.”
He said concessionaires should invest in “enhanced transport infrastructure, airport upgrades, monorail extensions, roads, etc”. He added that the city should expand family- and child-friendly offerings and entertainment.
Read the full article on iGaming Business: Macau Chief Executive Actively Monitoring Concessionaries’ non-gaming investments