Lei Wai Nong expects 90% pre-Covid GDP this year

Secretary for Economy and Finance Lei Wai Nong expects this year’s GDP will reach 90% of the level back in 2019, or a 10.3% de-facto year-over-year increment from last year.

While sitting in at a seminar organized by a local business association, the economy official said that last year, the city saw “strong recovery” in the economy with the resumption of normalcy after Covid-19 restrictions. The de-facto GDP increase last year was 80.5% year-over-year, with a per capita GDP reaching nearly MOP560,000, which signaled a recovery to over 80% of the pre-Covid level.

In addition, he announced that the State Council has approved the addition of Xi’an City in Shaanxi Province and Qingdao City in Shandong Province as eligible cities for the Individual Visitor Scheme (IVS) to Hong Kong and Macau, with applications starting to be accepted from Mar. 6. The official believes that this addition will promote the development of the city’s tourism industry by generating greater synergies.

Moreover, he said that this year, there will be four key tasks in his areas, including continuing to improve people’s livelihood and optimizing the business environment; accelerating the implementation of various major tasks and key projects determined by the “1+4” plan; deepening Macau’s function as a China-Lusophone platform; as well as accelerating the construction of the Guangdong-Macao In-depth Cooperation Zone in Hengqin (the Zone).

Lei underlined that Macau had a very satisfactory opening of this year with nearly 5.3 million counts of visitor entries logged from Jan. 1 to Feb. 18, equating to a daily average of about 108,000 counts. These amount to about 88% of the level in 2019.

In January, there were 199,278 international tourists, a year-on-year increase of 5.6 times, further recovering to 66.4% in the same period in 2019. The average hotel occupancy rate was 85.9%, especially during the past Golden Week from Feb. 10 to 17, when a total of 1,357,803 was recorded. The daily average number of tourists reached 169,725, a significant increase of 163.8% from the average of 64,328 during the same Golden Week in 2023, and has returned to the daily average level during the same Golden Week in 2019.

At the same event, Macao Chamber of Commerce (MCC) president Chui Sai Cheong gave several opinions on the development of Macau.

Chui suggested that the development of community economy should be further boosted. He cited the Central Economic Work Conference held at the end of last year as pointing out that the positioning of the promotion of consumption should be elevated from post-pandemic recovery to constant expansion. In addition, he said that the national Ministry of Commerce had dedicated this year to the promotion of consumption.

While emphasizing the difficulties faced by community business operators, he suggested the government organize more activities to attract local residents to spend in Macau. He also suggested the government designate land plots in Northern District for the construction of budget hotels, so as to boost the energy of the district.

Describing this year as a benchmark year for the Zone, Chui suggested the government ensure the effective implementations of policies in Hengqin that will attract capital and enterprises from Macau, so that investors from Macau will have the confidence and aspiration to participate in the construction of the Zone.

To his fellow businesspeople and entrepreneurs, Chui suggested they adjust to the new trend by analyzing changes in the market and consumer habits, as well as improving quality of both services and products with an open mindset.

GDP to grow less than 10% in 2024: MEA

Lau Pun Lap, the president of the Macau Economic Association (MEA), predicts GDP growth of less than 10% year-on-year in 2024. Lau said that visitor arrivals to Macau have been steadily increasing between January and February of this year

Lau also highlighted that the experience of visitors to Macau is changing as gaming operators invest more in non-gaming elements. He suggested strengthening tourism cooperation between Macau and Hengqin to expand the visitor base. However, the president of the Macau Economic Association pointed out that shops in some non-tourism districts are still facing challenges, with some closures in the North District.

This suggests that commercial tenants in certain areas have not fully benefited from the growth of tourists. Additionally, there may be pressure on non-performing loans in the banking sector, and uncertainties remain in Macau’s economic development. It is hoped that with the support of the Central Government, Macau’s economy will continue to develop steadily.