Macau GGR in July not low enough to warrant austerity

Tuesday 4th of August 2015

In light of July’s gross gaming revenue, Macau Secretary for Economy and Finance Lionel Leong said the figure is not low enough to warrant austerity measures.

Macau’s gross gaming revenue in July was MOP18.61 billion ($2.3 billion) down 34.5 percent year-on-year, while the accumulated gross gaming revenue during the period from January to July was MOP140.259 billion.

Leong said that since the average monthly gross gaming revenue is still above the level of 20 billion patacas, as estimated by the Revised Financial Budget for the Fiscal Year 2015, there is no need to implement austerity measures for public expenditure.

“In view of the gaming industry still facing uncertainty in the second half of the year, the Government will persist with its policy of financial prudence, by adopting some cost cutting measures,” the government information bureau said in a statement.

The bureau added that with the likelihood of the gaming industry still facing uncertainty in the second half of the year, the government will persist with its policy of financial prudence by adopting some cost cutting measures.

Macau’s Chief Executive Chui Sai On has said that Macau’s financial status remains solid, and its well-established fiscal reserve system is strong enough to withstand emergencies and economic fluctuations. According to the Revised Financial Budget for the Fiscal Year 2015 submitted by the Government, which passed its first reading by the Legislative Assembly in March, if the average monthly gross gaming revenue of 2015 reaches 20 billion patacas, the estimated surplus for the year would be 18.8 billion patacas.

“Macao’s gaming industry is currently facing uncertainties. The Government will closely monitor all gaming operators, including the operations of VIP rooms, and promptly react to emergencies, giving priority to safeguarding local residents’ employment rights,” said the bureau.

“Meanwhile, the Government is pleased to witness the healthy development of non-gaming industries, such as tourism, conventions and exhibitions, regional economic and trade, and young entrepreneurship, which are full of vitality. The Government will render full support to them, to promote adequate economic diversification in Macao.”