The gambling industry in Macau struggles to stay on top amidst slow economy and crackdown in corruption that are causing slump in GDP.
As Macau registers its first all-time low in GDP in five years, the gaming industry seems to be taking the brunt of the blame. However, The 2.1% decline in GDP, registered by the Macau Census and Statistics Service, is the result of other factors as well.
The Chinese economy seems to have taken a turn for the worse with poor economic growth being registered in the first three quarters of 2014. For one, the government is cracking down on corruption especially on mainland China. Tourism revenues have declined by almost 1%. The Chinese population is having a hard time procuring credits.
Overall gaming revenues on the island have plummeted to 23.2% by the end of the third quarter of the year. The Macau’s gaming services, unable to pierce foreign markets with mobile casino gambling, saw their gross revenues decrease by 12.3%.
All is not lost for Macau
Compared to many other countries, Macau is still an island with a relatively strong economy. Its overall economic growth has gone up by 6%. People are spending 7.2% more and the government’s expenditures went up as well by 8.1%. Private investments have also increased by 41.5 %.
There has been a 3.8% increase in employment in Macau’s gambling industry. Under the Macanese gambling laws, 84,600 people are employed on the island. Thanks to the gaming industry, only 2% of the population on Macau is unemployed. So overall, in terms of growth, Macau still exhibiting all the signs of a flourishing economy for gaming operators.