Casino Influence Grows In Macau’s Economy
Macau Faces Setback In Diversification Goal
Every city around the world wants a diversified economy. An economy where there are various streams of income. Whereas most find it easy to achieve, others struggle to achieve diversification. One of such cities that is struggling to achieve its diversification goal is Macau.
Gaming and Junket activities make up more than 50% of Macau’s economy as last year report shows. The city is looking for ways to diversify the economy and make it less reliant on casinos and games.
This is the second time the Gaming Sector has breached the 50% industrial share level in 5 years. The first was in 2014 when the sector accounts for more than 58%. The industrial share for 2018 was 50.52%
The casino sector in Macau is considered a heavyweight sector. In the 2018 industrial report, the industrial share of the sector is miles ahead of the other big sectors put together. The combination of essential sectors like hotels and hospitality, financial services, wholesale and retail trade, construction sector, real estate, renting and business activities, and public administration, all account for 32% of the industrial structure.
The Rise Of The Gaming Industry
The Data released by the Gaming Inspection and Coordination Bureau shows that there was a 14% increase in 2018 in gross gaming revenue. This was the biggest growth recorded in the economy, and it outstripped the 4.7% aggregate growth in the economy.
Since 2016, The Economic diversification report has been published annually to evaluate the extent to which the city is dependent on the gaming sector has reduced. The report was published by the Statistics and Census Bureau.
The fact that there is an increase in the dependence of the gaming sector by the city puts its diversification plans at risk. With numbers expected to increase in 2019, it looks like Macau would have to put its diversification plans on hold.
