Ho says austerity measures may be needed

Melco Crown CEO Lawrence Ho believes Macau’s flagging gaming industry has bottomed but shared the government’s view that further declines in revenue will require austerity measures.

Due to plummeting gross gaming revenues that has led to a fall in gaming tax collected by the government, Ho reiterated the concern of Macau’s finance secretary that austerity measures will be needed should tax revenues fall even lower, Macau Business Daily reported. On the upside, he added, the market is stabilizing and appears to have bottomed.

“It’s difficult to say whether the market has reached bottom. It’s been stabilising at this level. It has probably bottomed but more important to us and other operators is when it starts recovering. Everybody is looking forward to the recovery”, Ho was quoted as saying by the Daily.

Finance secretary Lionel Leong said the government is prepared to resort to austerity measures if July’s gaming revenue fails to reach MOP18.35 billion”

“Even if it starts stabilising at this level, and based on what the Secretary for Finance said, this is close to the level where the government might need to look at austerity measures. If the government is looking at austerity measures maybe a lot of other gaming business operators will have to look at them, as well,” Ho added.

 

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