Macau’s economy is expected to remain stable over the next three months despite three consecutive months of year-on-year declines in casino gross gaming revenue (GGR), according to the Macau Economic Association.
The association said Macau’s economic climate remained stable in July and August and forecast the trend to continue over the next three months.
The outlook was supported by an active summer tourism market. Average daily visitor arrivals returned to more than 110,000, while hotel guest numbers and occupancy indicators remained at ‘relatively hot’ or ‘overheated’ levels.
Electronic payments in the restaurant and retail sectors also indicated stable spending by residents and visitors, the association said.
However, Macau’s GGR recorded year-on-year declines in June, July and August, which the group described as a temporary slowdown.
The association expects GGR to return to year-on-year growth in September, partly due to a lower comparison base. Casinos and other entertainment venues were closed for 33 hours in September last year during Super Typhoon Ragasa.
It cautioned that any resulting rebound would not necessarily indicate a significant improvement in underlying market conditions.
Looking ahead, the association said concerts, sporting events, cultural activities and international exhibitions could attract higher-spending visitors, extend stays and support spending across hotels, restaurants, retailers and entertainment businesses.
A relatively stronger renminbi could also increase mainland visitors’ spending power and willingness to travel to Macau, according to the group.
Despite ample liquidity in the financial system, the association said weak borrowing demand among residents and businesses continued to constrain investment and consumption.
