Macau Chief Executive Ho Iat Seng has urged heightened “crisis awareness” amid stagnating gross gaming revenue (GGR) in the city’s key casino industry. As Macau's primary economic driver shows signs of slowing, the leader emphasized the need for fiscal caution and proactive measures to address the potential impact on government finances.
During a speech before the Macau Legislative Assembly on 14 April, Chief Executive Ho Iat Seng warned that monthly gross gaming revenue (GGR) must remain at or above MOP15 billion (£1.4 billion/€1.65 billion/$1.88 billion) to keep the government budget balanced.
“If it falls below that threshold, we would immediately face a budget deficit,” Ho cautioned.
From January to March, Macau’s GGR increased by only 0.6% year-on-year, averaging MOP19.2 billion per month. To reach the government’s annual target of MOP240 billion, monthly revenue must hit at least MOP20 billion going forward.
“Our fiscal structure is seriously imbalanced,” Ho stated, urging heightened “crisis awareness.” He emphasized that Macau, despite being a small city, faces significant and growing regular expenditures unless drastic changes occur.
Concessionaires responsible for Hengqin investments
Chief Executive Ho Iat Seng is calling for increased efforts to diversify Macau’s economy, emphasizing the development of industries like healthcare and finance to establish a more stable and sustainable fiscal base.
As part of this strategy, the government will also reassess the non-gaming commitments made by the city’s six casino operators. Under the terms of their licenses, concessionaires must collectively invest MOP130.4 billion in non-gaming projects and infrastructure, both in Macau and on the neighboring island of Hengqin.
“We will encourage the operators to allocate more resources to key industries in Macau and Hengqin, as well as to brand initiatives that enhance Macau’s global competitiveness,” Ho said, as reported by Macau Business. He noted growing public interest in what constitutes non-gaming development and assured that the government will soon introduce clear guidelines for evaluation and assessment.
According to The New York Times, Beijing is increasingly integrating major southern Chinese cities, including Hong Kong. In line with this trend, casino operator SJM Holdings announced shortly before President Xi Jinping’s December visit to Macau that it would convert nine floors of office space in Hengqin into a three-star hotel.
Effect of US-China trade war will be ‘minimal’ in Macau
José Carlos Matias, director of Macau Business, believes the escalating US-China trade tensions are likely to have only a “minimal” impact on Macau.
In a recent editorial, Matias emphasized that Macau’s economy is “heavily service-oriented” and noted that the US accounted for just 5.5% of the city’s exports last year, limiting its direct exposure to the trade conflict.
He echoed Chief Executive Ho Iat Seng’s concerns about Macau’s ongoing dependence on gaming, stating that such worries are “understandable” given the territory’s economic structure. In 2024, gaming taxes still made up 80.5% of government revenue—a figure only slightly below the 84.8% recorded in 2019.
Matias also highlighted how the city’s economic outlook continues to hinge on one key metric: gross gaming revenue. “At the start of every month, the figure that truly matters for Macau’s finances is the GGR report,” he wrote.
While Macau can’t completely shield itself from regional and global economic shifts, Matias remained cautiously optimistic. Despite what he described as the presence of a “disruptor-in-chief” in Washington, he concluded that “the glass is still half-full.”
