Macau Business Editorial | February 2024| By José Carlos Matias – Director
The last time it was the Year of the Dragon (2012), Macau’s Jockey Club (MJC) generated MOP356 million in gross gaming revenue (GGR). That was already half what it was in 2005, but it’s nine times the meagre figure (MOP40 million) reported last year. To put things in perspective, while the take at the track in 2005 was just 1.38 per cent the amount of casino GGR, by 2023 that had been decimated to just 0.021 per cent. For the MJC’s operator you could say the writing was on the wall and plain to see. It’s noteworthy to highlight that back in 2018 when its operating concession was renewed for an eyebrow-raising 24-year term, revenue had already dwindled to MOP101 million.
The termination of the MJC’s concession contract sees the city bid farewell to yet another gambling activity, six years after the closure of the Canidrome spelled the end for dog racing (a wise move and long-overdue in the case of the greyhounds). Remaining forms of gambling such as lotteries and sports betting are dwarved by the overwhelming hegemony of casino games of fortune. Within the gaming activities sector, diversification is a figment.
Beyond gaming, the MJC saga invites present discussion of the contract extension that was granted in the past and what use will be made of the site’s precious land in the future. Both are addressed in this issue of Macau Business and will most likely see relevant developments in the not-so-distant future.
Also taking centre stage this month are the city’s birth rate, fertility and overall demographic trends. Macau’s famous “dragon babies”, born in an auspicious 2012 with 7,315 live births, will celebrate their 12th birthdays this year. It’s a figure that has seen a steady decline, down year-on-year with the exception of 2014, with births in 2022 at just 60 per cent of the 2012 Dragon Year’s total. This issue’s special report delves into the multifaceted repercussions of a declining birth rate – a problem shared by a number of highly developed economies and one that is becoming an increasingly persistent challenge both here and over the border. The matter is now ensconced on the city’s agenda, as evidenced by exchanges between legislators and the government, but so far any response has been piecemeal. While there’s no magic elixir, due attention could be paid and an integrated package of measures and long-term policies adopted – not just to boost the birth rate but also to better address the city’s ageing population, with Macau (thankfully) ranking second in the world for life expectancy (just behind Hong Kong).
In his New Year Message for the Year of the Water Dragon, 2012, then Chief Executive Chui Sai On pledged to “take the necessary initiatives to realise the ‘world centre of tourism and leisure’ project, committing to consolidating existing advantages and promoting the appropriate diversification of the economy”.
A similar, more emphatic message was conveyed by the current SAR leader, Ho Iat Seng, in his address for this year.
In this Year of the Wood Dragon, 2024, will we hold our horses – or release the dragons?
龍馬精神! · Happy Chinese New Year of the Dragon! · Kung Hei Fat Choi!
