Macau’s Chief Executive Sam Hou Fai warned on Wednesday that the city faces mounting economic challenges, including growing regional competition in the gaming sector, an overreliance on mainland Chinese visitors, and slow progress in economic diversification.
Speaking at a government-led Economic Development Council meeting, Sam acknowledged these risks but did not propose specific solutions. “Competition in tourism and gaming from neighboring cities intensifies and looms. Such risks and challenges must not be overlooked,” he said.
Macau, the world’s largest casino hub, is facing increasing pressure from emerging gaming markets. Japan is advancing its first integrated resort, Thailand is moving toward legalizing casino operations, and the Philippines and Singapore continue to expand their gaming sectors.
Despite efforts to attract a broader international audience, Macau remains heavily dependent on mainland Chinese visitors, who accounted for 70% of the city’s total arrivals in 2024.
While overall visitor numbers surged 23.8% year-on-year to 34.9 million in 2024, Macau’s gaming revenue has weakened, recording a 5.6% year-on-year decline in January, following a 2% drop in December.
“Macau still heavily relies on the mainland Chinese tourist market, which warrants close attention in the future,” Sam noted.
Sam acknowledged that Macau’s economy remains highly dependent on gaming, despite ongoing diversification efforts.
“The monotonous structure of visitor sources, the imbalance in the government’s tax revenue, and the lack of innovation – these are major problems that still need to be improved and resolved,” he said.
Economic diversification has fallen short of public expectations, and Sam cautioned that the “one industry dominates” structure will persist in the near future.
Sam said Macau is at a critical juncture, transitioning “from recovery to high-quality development”, but did not outline specific policies.
“We must focus our efforts on boosting the economy, driving development, and advancing construction,” he said, urging collective action from policymakers and businesses.
Sam is set to deliver his first policy address in the coming weeks. The government has also formed five working groups, with the Chief Executive personally leading efforts on public administration reform and the Guangdong-Macau In-Depth Cooperation Zone in Hengqin.
Original article: https://www.yogonet.com/international/news/2025/02/21/95790-macau-faces-intensifying-regional-gaming-competition-and-economic-risks-says-chief-executive
