In a strategic move designed to diversify its economy, the Macau government has introduced a grading system to assess the non-gaming contributions of its six major casino operators.
This initiative aims to reduce the region’s dependence on gaming revenue and promote sustainable economic growth.
Tai Kin Ip, Secretary for Economy and Finance, announced on March 28th that a midterm review will be conducted to evaluate the effectiveness of non-gaming investments made by Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts and SJM Holdings.
These operators are collectively committed to investing MOP130bn (£16.23bn) in non-gaming ventures, including theme parks, sporting arenas and cultural facilities, as stipulated in their 10-year concession agreements signed in 2022.
The government’s ambitious target is for non-gaming revenue to contribute 60% of Macau’s GDP by 2028, reducing gaming’s share to 40%. This marks a significant shift from 2019, when gaming accounted for over 50% of GDP and non-gaming sectors contributed less than 10%.
The grading system aligns with the ‘1+4’ strategy introduced under former Chief Executive, Ho Iat-Seng, focusing on enhancing international tourism alongside four new economic pillars – Chinese medicine, finance, technology and the meetings and convention trade.
Sam Hou Fai, the current Chief Executive, has reiterated the commitment to “promote moderate economic diversification and focus on cultivating new industries with international competitiveness.”
This marks a significant shift from 2019, when gaming accounted for over 50% of GDP and non-gaming sectors contributed less than 10%.
The grading system aligns with the ‘1+4’ strategy introduced under former Chief Executive, Ho Iat-Seng, focusing on enhancing international tourism alongside four new economic pillars – Chinese medicine, finance, technology and the meetings and convention trade.
Sam Hou Fai, the current Chief Executive, has reiterated the commitment to “promote moderate economic diversification and focus on cultivating new industries with international competitiveness.”
