Macau casinos to experience annual revenue decline
Gaming revenue from Macau casinos is likely to decline around 3% this year, as the US-China trade war has influenced operations.
Macau.- Macau is on its way to experience its first gaming revenue decline since 2016, and 2020 is likely to experience similar results. Bloomberg forecasts indicate that gaming revenue will decline from a 14% growth in 2018 to a 3% setback in 2019.
The analysts from Bloomberg said that gaming revenue in 2020 is expected to improve approximately 3%, which is significantly lower than the 2018 figures. It is unclear whether Macau will be able to come back to double-figure increases in the next couple of years.
“All of the juice has been squeezed out of the orange,” said David Bonnet, a contributing analyst at Bloomberg Intelligence. “Macau is starting to resemble more mature competitive markets such as Las Vegas and Atlantic City.”
The US-China trade war impacted on Macau’s economy and casino operations. The protests in Hong Kong earlier this year slowed down the number of tourists in Macau, who pushed their vacations to avoid such issues.
Macau to reveal concession details in April
An official said Macau will announce further details on the casino concession during a meeting in 2020. According to incoming Secretary for Economy and Finance Lei Wai Nong, there will be a policy address next April. The incoming official said that the government’s priority is the interests of the local people.
“First we have to fully review the gaming concessions contracts provided after the opening of the gaming market,” he explained. “Then, maybe introduce some new things, replace some requirements.”
“It’s a very important work for the new gaming tender. New problems can arise with the new contracts, so we have to define the requirements well. The gaming sector involves many interests, but I want to underline that the interests of the local residents will always have the priority.”