Economy shrinks 17.2 percent

Macau’s economy shrank 17.2 percent in the fourth quarter after casino revenues slumped and visitors cut spending.
Gross domestic product for the full year dropped 0.4 percent following a 10.2 percent decline in the second half of the year, according to data from the Statistics and Census Service (DSEC).
Chinese President Xi Jinping’s anti-graft campaign prompted high rollers to avoid the world’s biggest gambling hub during the peak Lunar New Year holiday period, leading to the city’s worst monthly decline in gaming revenue in February. Tighter restrictions on visas and cigarette smoking have also deterred vacationing gamblers.
The industry may face an 8 percent drop in gross gaming revenue in 2015, a Bloomberg survey showed, extending last year’s 2.6 percent fall. Gross gaming revenue plunged 49 percent in February.
Visitors from mainland China are also spending less than before, a further blow to the fine-dining eateries, luxury retail malls, and high-end hotels that casinos have set up next to their gambling halls.
Excluding gambling, per-capita shopping expenses by Chinese tourists dipped 32.8 percent to MOP1,079 (USD135) in the quarter ended December, according to DSEC.
Galaxy Entertainment Group Ltd. and Melco Crown Entertainment Ltd. are set to open new projects on Macau’s Cotai strip later this year, in a bid to woo more visitors. MDT/Bloomberg