Macau’s gaming sector experiences healthy development
A new report from the Macau government says that the gaming sector experienced a healthy development between 2016 and 2018.
Macau.- Macau’s government posted on Wednesday a report in which it studied the first three years of the implementation of Macau SAR Five-Year Development Plan. Between 2016 and 2018, Macau’s gaming sector experienced healthy development and even surpassed some expectations.
The report says that the annual casino game table growth rate totalled 2.8% between 2013 and 2018, which is under the 3% rate planned by the government, Macau Business detailed. The percentage from non-gaming revenue dropped from 10.7% in 2016 to 9.9% in 2018, which is higher than the 9% rate estimated for 2020.
Macau also expected local residents to hold 85% of mid-level or higher management positions. The number surpassed the government’s expectations in 2018, as it rose to 88.1%.
The percentage of the number of local suppliers in Macau has increased from 46.8% in 2016 to 49.6% in 2018. Local authorities expect that number to increase to 50% by 2020. Moreover, the number of local companies contracted by concessionaires totalled 493 companies in 2016 and 660 in 2018.
Macau likely to start Q4 on a bad note
Despite posting a slight increase in GGR in September, Macau is likely to register a 3% decrease in October. The Chinese gambling hub needs to experience an impressive fourth quarter (Q4) in order to post positive results at the end of 2019.
JP Morgan Securities said that October’s GGR is likely to decline 3%. GGR would also fall 6% to 8% in November and December. Thus, for the fourth quarter, GGR would fall 6% year-on-year, and Macau would post an overall negative performance in 2019.
