Macau’s Chief Executive Sam Hou Fai has warned of a potential fiscal revenue shortfall in 2025, citing a sluggish start for the gaming industry. The city’s reliance on gaming revenue, which has long driven economic growth, faces mounting challenges amid slower-than-expected post-pandemic recovery.
The government had projected gross gaming revenue (GGR) for 2025 at MOP240 billion ($29.7 billion), an 11% increase from the 2024 forecast of MOP216 billion. However, January’s GGR of MOP18.25 billion ($2.28 billion) and February’s MOP19.74 billion ($2.47 billion) fell below the anticipated monthly average of MOP20 billion ($2.5 billion).
Post-pandemic recovery momentum has slowed, making fiscal revenue growth less positive than initially projected, Sam said at a recent briefing following China’s “Two Sessions” meetings.
Investment bank UBS forecasts low single-digit growth for Macau’s gaming sector, with GGR expected to increase by just 3% annually through 2025 and 2026. Growth is likely to be driven by the premium mass segment, supported by new hotel openings and increased tourism initiatives, as reported by AGB.
The Macao Government Tourism Office (MGTO) estimates visitor arrivals in 2025 will reach between 38 million and 39 million, nearing 2019’s pre-pandemic level. Macau recorded 34.93 million visitors in 2024.
Sam acknowledged Macau’s heavy dependence on the gaming sector as a barrier to economic diversification.
Macau continues to face internal economic challenges, including structural issues and shifting consumption patterns, he said. The government is assessing economic trends and internal imbalances to mitigate risks.
To counter the impact of the industry’s slowdown, Sam pledged to adopt a more innovative approach and implement stronger measures to diversify the economy.
Key priorities include:
• Improving the business environment
• Fostering emerging industries
• Enhancing community economic vitality
• Supporting small and medium-sized enterprises (SMEs)
Sam highlighted the need to identify and develop landmark projects with significant economic impact to inject fresh momentum into Macau’s long-term growth.
Original article: https://www.yogonet.com/international/news/2025/03/18/98580-macau-chief-executive-warns-of-fiscal-shortfall-as-gaming-industry-slows
