Macao’s gaming sector is set to benefit from Beijing’s latest economic stimulus measures aimed at revitalising sluggish consumer spending, according to US-based brokerage Seaport Research Partners.
In a note cited by GGR Asia, Seaport senior analyst Vitaly Umansky said the central government’s plans to boost consumption and improve consumer confidence “should provide a positive tailwind for Macao’s revenues.” He added that the measures are expected to offer sustained support for the industry beyond 2025.
Umansky pointed to recent policy adjustments easing travel between mainland China and Macao as another encouraging sign for the city’s gaming market.
Beijing unveiled its Special Action Plan to boost consumption last Sunday, marking the latest in a series of stimulus efforts introduced since September 2024. Key initiatives in the plan include enhancing minimum wage adjustment mechanisms and expanding channels for property income to drive wage growth.
Although the plan did not include direct cash handouts—often referred to as “helicopter money”—Umansky said the shift in focus towards strengthening the consumer economy reflects the government’s urgency in addressing weak domestic demand.
“We expect that over the medium term, these measures will help support [Macao’s] demand growth,” he said. “Improvement in consumer confidence and expansion of consumer wallets should provide long-term support to the growth of Macao’s base mass customer base.”
While Macau’s gaming industry continues its post-pandemic rebound, concerns persist over the slow recovery of the base mass market, particularly among lower-spending gamblers.
Seaport research showed this segment is 15% below 2019 levels. Moreover, overnight visits remain weak compared to day-tripper traffic from Guangdong and Hong Kong.
The premium gaming segment, however, is performing well. Analysts expect the mass market to rebound as consumer confidence improves.
Although Beijing’s stimulus measures are expected to provide some short-term relief, Fitch Ratings has raised concerns about China’s broader economic challenges.
The ratings agency pointed to persistent structural issues, including high local government debt, demographic shifts, and ongoing economic tensions that could hinder long-term, sustainable growth. These factors may ultimately limit the effectiveness of stimulus policies and pose risks to consumer-driven industries such as gaming.
Despite these warnings, industry experts remain cautiously optimistic. They expect that China’s stimulus efforts, alongside relaxed visa policies and enhanced travel accommodations, will help sustain a steady flow of visitors to Macau.
Original article: https://www.yogonet.com/international/news/2025/03/25/99231-beijing-economic-stimulus-seen-as-boost-for-macao-gaming-industry
