Sam Hou Fai: Macau must brace for new competition in gaming, tourism
Sam made the remarks yesterday before a meeting of Macau’s Economic Development Council.
“In recent years, the rise of unilateralism and protectionism has posed significant challenges to the global economy,” he observed. “Macau cannot remain unscathed, especially as competition in tourism and gaming from neighbouring cities intensifies and looms. Such risks and challenges must not be overlooked.”
The onetime appeals court judge succeeded Ho Iat-Seng as city leader in December. Like Ho, he is committed to the diversification of the city’s economy, through the development of four supporting industries: finance, healthcare, technology and meetings and conventions.
Sam said Macau must also promote itself as a global destination beyond mainland China. Last year, tourism chief Maria Helena de Senna Fernandes launched a road show – “Experience Macao Limited Edition” – to draw new, high-value patrons from European and Arab countries.
While tourism to the Chinese special administrative region (SAR) has rebounded in the post-pandemic era, with 34.9 million visitors in 2024, mainlanders still account for 70% of the total.
Gaming presents an “economic structural problem”
During his campaign, Sam blasted gaming’s “negative impact” on the Chinese special administrative region (SAR). Later, he expressed appreciation for its contribution to the local economy and told the city’s six gaming concessionaires the industry must “develop healthily” for Macau’s long-term viability.
Sam did not identify specific rivals to Macau as a gaming market. But established jurisdictions like Singapore and the Philippines are working to expand their already successful gaming sectors. And new competition looms in Japan, where MGM will open a multibillion-dollar casino resort in 2030. Thailand is fast-tracking its own casino legislation, in hopes of opening even earlier, by 2029.
Diversification will not happen overnight, Sam acknowledged. “The economic structural problem of reliance on the gaming industry is expected to persist for a long time. By adopting new mindsets, better strategies and stronger commitment, we can drive economic diversification.”
Slow start to the year, but upturn expected
In 2024, Macau’s gross gaming revenue (GGR) rose 23.9% year-on-year to MOP226.78 billion (£22.5 billion/€27 billion/$28.3 billion). But it has not yet returned to pre-Covid levels.
GGR fell 2% year-on-year in December and stumbled again in January, with a decline of 5.6%, despite the start of the Lunar New Year. Analysts from Citigroup say the trend is unlikely to change until the second half of 2025.
However, in a January special report, Macau Business saw hopeful signs. For one thing, Macau gaming operators are once again issuing dividends, after a three-year pause. In 2024, MGM China and Wynn Macau resumed the payments, joining Galaxy, which started in 2023. The remaining Big 6 – Melco, SJM and Melco – are expected to follow suit, according to Morgan Stanley.
Jenny Lao-Phillips, of the Faculty of Business and Law at the University of Saint Joseph, says the surge in premium-mass play will propel growth. “It may take some time to return to pre-2019 levels,” she said. “But with a new market and strategies targeting this group, the future remains optimistic.”
The government, meanwhile, anticipates MOP240 billion in GGR for the year.