Economy expected to see moderate recovery through November

The local economy is expected to maintain a path of modest recovery in the coming months, according to the latest economic sentiment index released by the Macau Economic Association.

The group reported that the index stood at 6.2 in July and 6.1 in August, with projections for September through November hovering between 6.0 and 6.1, indicating a broadly stable outlook.

Tourism continued to underpin the city’s economic activity during the summer, when arrivals reached 7.68 million visitors in the two months of July and August, averaging 123,000 daily, a 15.2% increase from a year earlier.

According to government data, hotel demand surged, with occupancy rising to 91%, a level described as “at peak demand.”

Gaming revenues also remained strong, with average daily gross gaming revenue of MOP714 million in July and MOP715 million in August, lifting the performance of the city’s six major integrated resort operators.

Meanwhile, the association believes that the retail sector is showing signs of stabilization after a steep decline in the first half of the year, with industry experts expecting sales to improve in the third quarter.

According to Lau Pun Lap, president of the Macau Economic Association, the expected increase is supported by a steady inflow of visitors and a busy calendar of events.

He noted that while spending patterns and levels have not yet returned to their pre-pandemic peaks, the continued growth in tourist arrivals has been providing much-needed momentum for the sector.

He forecast that third-quarter retail performance could hold steady or even record slight year-on-year growth, citing a recovery in consumer confidence and government efforts to stimulate demand.

A series of events, including the ongoing Macau International Fireworks Display Contest, the National Day holiday, and major concerts, are expected to drive foot traffic and support retail sales.

However, while the short-term results are encouraging, business leaders are calling on the government to complement such measures with long-term strategies to improve the local business environment.

The Industry and Commerce Association of Macau Northern District president Wong Kin Chong said earlier that merchants continue to face challenges amid changing post-pandemic economic conditions and a gradual return of residents’ travel habits.

This comes on the heels of the ongoing consumption campaign which has already generated about MOP140 million in linked spending during its first week.