The SAR Government expects Macau’s gross gaming revenue to return to positive growth and reach around MOP200 billion (US$25 billion) each year in the future. Non-gaming elements in casino operators’ revenues are expected to account for nine per cent in five years’ time compared to the 6.6 per cent recorded in 2014 in order to advance economic diversification.
“We’ve entered a relatively stable period. Most importantly, we estimate gross gaming revenue will reach MOP200 billion every year. We hope next year that the downward trend [in casino revenue] will be reversed to positive growth,” said Chief Executive Fernando Chui Sai On yesterday.
“After some deep adjustments, for the next five years we’ve set the target to change the double-digit decline [in gaming revenues] to positive growth,” the top official added.
In August, Macau reversed 26 consecutive months of decline in gaming revenue with a 1.1 per cent increase to MOP18.8 billion.
Mr. Chui made his remarks in a press conference yesterday announcing the final version of the SAR’s first Five-Year Plan for 2016 to 2020 with other major officials.
Improving livelihoods
Despite the uncertainty and fluctuation of the external economic environment, the city’s unemployment rate remains stable, which is crucial to sustaining Macau’s economy, said Secretary for Economy and Finance Lionel Leong Vai Tac
“The low and stable unemployment rate in the city is an important element to supporting the city’s economy, at least it helps maintain our internal demand in the city as well as for local SMEs (small and medium-sized enterprises),” Mr. Leong said during the press conference.
In addition, the Five-Year plan indicates increasing the city’s population employed by the retail sector to 10 per cent by 2020 from 8.5 per cent in 2015. It is also expected that a further 12,000 hotel rooms will be added to the city’s inventory and create at least 14,400 related jobs.
Moreover, the government vows in the plan to continually support local SMEs by expanding sales channels for local enterprises. It includes a scheme to implement a public procurement mechanism by giving priority to buying local products and designs while promoting local products to large gaming operators. The target set for the amount of value that gaming operators purchasing local products or services is to reach at least 50 per cent by 2020, from 41 per cent in 2015.
Long-term goals
The Five-Year Plan, finalised after nearly one year of preparation, sets out comprehensive development targets for the city, focusing on citizens’ livelihood and Macau’s diversified economy.
Chui Sai On said the final version has 48,000 characters on the basis of a draft issued on April 26, 2016, and includes suggestions from citizens and civil groups.
The plan has 27 sections illustrating seven major targets, including maintaining stable economic growth, improving the structure of industries, improving Macau’s role as an international tourist city, raising the quality of life of residents and the quality of education, protecting the environment, and strengthening the efficiency of the government, whilst deepening the building of the legal system.
The plan also prioritises infrastructure projects for the next five years, such as the construction of a light railway network, a fourth bridge between Macau and Taipa, expanding a waste incinerator, and building an electronic surveillance system.
“The experience that the government has learned shows that short-term plans would not help us handle the changing situation, nor promote the SAR’s public governance”, Chui Sai On said.
“A long-term plan made with higher standards and vision is necessary for Macau’s future development. The plan was not made in haste; the SAR needs it, the people want it,” he added.
Macau started drafting its first Five-Year Plan in October 2015, when a special committee was appointed to research and make a plan for the city to become a world centre of tourism and leisure by the mid-2030’s. The SAR Government has held over 40 public meetings to collect civil opinions and suggestions for this plan.
