Macau’s Chief Executive Ho Iat Seng said that the gambling sector accounted for less than 40 percent of the city’s gross domestic product (GDP) in 2023, signaling a shift towards a more diversified economy.
“According to official figures to be announced soon, the gaming industry only accounts for about 36 percent of GDP in 2023, with the rest being non-gaming elements,” Ho stated during a press conference. He also noted that the 2023 GDP figures represented 80 percent of the levels seen in 2019, the last year before the Covid-19 pandemic.
Looking ahead, Ho indicated that while gambling’s share of GDP is expected to grow this year, his administration aims to maintain it below 40 percent, consistent with targets set in an official report last year. Official forecasts estimate Macao’s 2024 GGR at 216 billion patacas ($26.82 billion).
Historically, Macau’s economy has heavily relied on the gambling sector, which made up 63 percent of GDP between 2011 and 2013, with gross gaming revenue (GGR) peaking at 360 billion patacas ($45 billion) in 2013. However, the government has been working to diversify the economy in recent years, promoting industries such as finance, life sciences, and large-scale sporting and leisure events.
In a bid to secure their licenses in 2022, Macau’s six casino operators committed to investing more than 100 billion patacas ($12.5 billion) in non-gambling infrastructure and projects over the next decade. Despite these diversification efforts, gaming remains a crucial revenue source for the government.
Original article: https://www.yogonet.com/international/noticias/2024/05/22/72289-macau-39s-gdp-sees-gambling-contribution-drop-below-40–says-chief-executive
