F&B and luxury goods sector baffled by gaming slump

Plummeting gaming revenue has proven headache-worthy not only for casino operators but also for business operators from the food and beverage and luxury item sectors, according to the director of the Industry and Commerce Association of Macau, Ho King Lun.
Last month, the city recorded a plunge of nearly 40 percent in casino revenue year-on-year. Such a downturn, which some analysts are forecasting will continue, has prompted widespread fear amongst local business owners. Some are beginning to seek out investment opportunities on the mainland or in Thailand, according to a report by the TDM English news.
“Many friends and members have said that the food and beverage business dropped by 20 percent and the retail sales of luxury [items] also saw a cut of 40 percent. On the other hand, mass-oriented businesses remain unaffected for the moment. What we are seeing is, a general economic downturn,” said Ho, adding that rent-related expenses and other living costs in the city seem to be remaining intact in spite of the ongoing economic adjustment.
The association’s director also revealed that an investment fund worth HKD 5 million has been set up, which is being financed by members of the association in a bid to help small and medium-sized enterprises develop their businesses outside of Macau. The association is considering allocating part of its fund to investment in Bangkok, Thailand, following a field trip to a shopping mall funded by a local Thai businessman in February. Aside from that, of the three regions for Guangdong and Macau commercial cooperation, he thought the market in the town of Cuiheng in Zhongshan city was the most likely to be “ripe” for business development from small and medium-sized enterprises.