Macau Business Editorial | May 2023 | By José Carlos Matias – Director
Macau’s core industry is bouncing back quicker than most anticipated, with gross gaming revenue (GGR) in April hitting 60 percent of the last full pre-COVID month on the heels of returning mass tourism.
The SAR came late to the post-pandemic party but swiftly stole the limelight, with much-touted pent-up demand – primarily from the mainland and Hong Kong – able to slingshot the city’s GGR past not just the Las Vegas Strip but the whole state of Nevada for the first quarter of 2023.
And, make no mistake, all this was achieved with little contribution – perhaps one tenth – from the fat cat junkets that, at one point in 2013, made up some two thirds of total gaming revenue.
Should this trend continue, the government’s full-year MOP130 billion gaming revenue target will be not only met but comfortably surpassed. We could even attain a level (between MOP15 and 16 billion average monthly GGR) at which dipping into the fiscal reserves to balance the government’s 2023 budget would no longer be needed. Nevertheless at this stage, the sudden injection of bullish sentiment notwithstanding, we’d be wise not to count our chickens before they hatch.
The pandemic winter has been followed by a Phoenix-like spring, and we’ve been given another chance to hit the nail on the head
While it is heartwarming to watch our “comeback kid” welcome the new mass influx of visitors, we mustn’t merely stand by, mesmerised – a call-to-action is due. Here, we reiterate that to really get it right, Macau 3.0 requires a fresh approach to importation of labour, transportation and social infrastructure. Addressing these issues might sound like Groundhog Day – again – but getting Back to the Future, allow me to stress that our pandemic winter has been followed by a Phoenix-like spring, and we’ve been given another chance to hit the nail on the head. How? I’m not talking about pulling a rabbit from a hat, but in some aspects at least one might humbly venture: it doesn’t take a rocket scientist.
It would be most regrettable to witness the deterioration in customer service provided to visitors that a labour crunch scenario might engender
On the labour front, as detailed in this month’s issue of Macau Business, industry insiders caution that the city needs to tackle red tape and the sluggish approval process for hiring non-resident workers. Well-coordinated efforts with mainland authorities are seen as key to helping close the supply-demand gap amid this fast-paced economic recovery, particularly in hospitality and the tourism-related sectors.
Authorities have an understandable balancing act with respect to prioritising locals, but there’s a common-sense limit to protectionism. A destination’s reputation relies heavily on word-of-mouth, so it would be most regrettable to witness the deterioration in customer service provided to visitors that a labour crunch scenario might engender.
Flexibility, adaptability and openness are crucial in this regard, as the government should be aware. It’s a matter of nailing it.
Turning 19 (and counting)
Our Macau Business magazine and publishing house De Ficção – Multimedia Projects celebrate their 19th anniversary this month against a fortunate background of sound economic recovery. We couldn’t be more pleased to see reality proving the doomsayers wrong, as the pandemic-induced protracted period is behind us, and the city is sailing towards a brighter shore.
We would like to wholeheartedly thank the talented, hardworking team members, our faithful readers, and the valuable partners, suppliers, and customers who have joined us on this journey.
