Macau Chief Executive Ho Iat Seng attended the Legislative Assembly plenary session on Tuesday (19 November) for the last time during his term, where he presented an overview of the government’s work for the 2024 fiscal year and introduced the budget for 2025.
Ho emphasized that efforts to diversify the economy had achieved new results during his tenure. Last year, the gaming industry accounted for 37.2% of Macau’s GDP, down 14 percentage points from pre-pandemic 2019 levels, while the share of four key industries in the overall economy had steadily increased. He projected gaming revenue for next year to reach MOP 240 billion, with a modest growth forecast of just 6%, which he described as conservative. Ho also praised the contributions of the six major gaming operators (concessionaires) to Macau and thanked them for meeting the requirements set out in their new contracts.
Regarding the four key sectors—traditional Chinese medicine, modern financial services, conventions and exhibitions, and cultural industries — Ho noted that their combined added value in 2023 reached MOP 39.05 billion, reflecting a 6% increase compared to 2019. He also reported that Macau had received 25.92 million visitors in the first nine months of this year, recovering to 85.8% of 2019 levels.
As for gaming revenue up to the end of the third quarter this year, mass-market gaming accounted for 75.8%, while VIP rooms contributed 24.2%. Before the pandemic, VIP gaming outpaced the mass market. Ho explained that the shift in revenue balance and the reduced contribution of gaming to GDP — from a peak of 62% under previous administrations to over 50% when he first became Chief Executive — was a natural adjustment.
He noted that it was clear to everyone that the primary reason for this change was the government’s efforts to prevent the negative impact of VIP room-related issues in mainland China. He expressed hope that the six major gaming operators would continue to fulfil their responsibilities.
Ho added that the development of the gaming industry in the past had constrained the growth of other sectors in Macau. As a result, the government required the six major gaming operators to invest MOP 110 billion to create new non-gaming elements. Over the past year, the operators have seen increased revenue from concerts, and Ho revealed that some operators have expressed interest in developing the health and wellness industry. Recently, licenses have been issued to offer private clinic services at casino resorts, allowing tourists to receive medical treatments or visit Macao Union Hospital, with both services interconnected.
Ho highlighted that the composition of Macau’s visitors had changed. Last year, tourists from mainland China accounted for 60%, while 40% came from outside the mainland. He believes that the gaming industry is now developing healthily, transitioning from a past focus on high-stakes gambling, credit extensions, or the unregulated movement of funds through VIP rooms. As gaming regulations were tightened, the visitor structure gradually shifted, with more independent travellers, young people, and families visiting Macau. The proportion of these tourists engaging in gaming has increased. Ho estimated that the number of visitors to Macau this year could reach 34 million and remarked that “as long as tourists gamble a little, the revenue will accumulate bit by bit.”
As for this year’s gaming revenue, Ho projected it would total MOP 216 billion, averaging MOP 18 billion per month. Up until October, the average monthly revenue had reached MOP 19 billion. He believed that if the remaining two months also saw MOP 19 billion in revenue, the annual total could reach MOP 228 billion.
Additionally, last year’s casino revenue accounted for 37.2% of GDP. Ho estimated that this year’s GDP would be around MOP 410 billion to MOP 420 billion, with gross gaming revenue accounting for roughly 40%. Maintaining this 40% share has been one of his targets, with the remainder coming from non-gaming industries. He described this as “expanding the pie.”
