Macau could be in the red due to Coronavirus

Macau could be in the red due to Coronavirus

Secretary for Economy and Finance predicts a €4.4 billion loss for the city this year.

Macau.- The Secretary for Economy and Finance, Lei Wai Nong, has said that that the Macau Treasury could record a deficit exceeding MOP40 billion (€4.4 billion) in 2020.

In 2019, the local government saw a surplus of MOP51.4 billion (€5.7 billion), with MOP82.1 billion (€9.2 billion) in expenses and MOP133 billion (€14.3 billion) in revenue.

A large percentage of revenues generated came from MOP112.7 billion (€12.5 billion) gaming taxes collected that year.

But with local gaming revenues severely impacted by the Coronavirus crisis and a significant drop in visitor numbers, a deficit could be recorded this year.

In January, Macau recorded an 11.3 per cent year-on-year drop in gross gaming results to MOP22.1 billion (€2.4 billion), with the local government collecting MOP8.8 billion (€986 million) in gaming taxes.

February saw a dramatic 87.8 per cent year-on-year fall with collected gaming tax revenue for that month expected to be lower still.

When asked if the government was considering any decrease in the percentage of gaming taxes collected, the Secretary answered that any change to the current gaming taxes would have to pass through the usual legislative process.

In this article:
finance macau