VIP volumes slow down in Macau
The fourth quarter of the year is showing a slow down in VIP volumes in Macau, which is on its way to record a poor financial period.
Macau.- Analysts from Nomura Research have indicated that the fourth quarter of the year could bring worse-than-expected financial figures. The analysts said that VIP volumes have slowed down in November.
Nomura said that according to several property managers, overall VIP volumes in November have slowed than more than usual after the Golden Week in October, AGBrief informed. “The Macau government has put restrictions on multiple re-entry visas,” said the analysts.
“While frequent customers accustomed to getting through immigration have been turned away recently. Deactivation of electronic issuance of visas has also had a negative impact on more frequent visitors,” they added.
Moreover, they said that the visit from the Chines President Xi Jinping in the second week of December will also be a challenge for local operators. As the Chinese New Year will take place in January, visitors are likely to visit the city in that month, instead of in December.
Gaming in Macau produces 50% of its GDP
The Statistics and Census Bureau (DSEC) revealed casinos and junkets produced 50.5% of Macau gross domestic product (GDP). The figure involves GDP at producers’ prices, in which gaming in Macau has now a 1.5% higher share.
The report shows gross value added (GVA) at current prices in the segment jumped 10% in real terms year-on-year. In 2018, it reached €24.7 billion.
Macau’s 2020 budget
The Macau Legislative Assembly has approved the budget for 2020, and gambling will contribute with most of its revenue. The budget balance for 2020, which was approved unanimously, has been set to €2.4 billion. As reported by Macau Business, the local government wants the Integrated Ordinary Budget revenues to reach €13.6 billion by 2020. That figure would represent a 0.3% rise from the year-end forecast that the Economy and Finance Secretary Lionel Leong had reported before the 2020 budget vote.
The gambling industry is still the most important force for the local economy. The government is likely to collect €10.1 billion in Special Gambling Tax or around 74.5 % of total revenues.
