Leong: Adjustment in gaming industry ‘under gov’t’s close watch’

Macau government is paying close attention to the impact of a drop in gaming revenue upon the city’s overall economic environment, labor market, and the operational space for small and medium-sized enterprises (SMEs), said the Secretary for Economy and Finance Lionel Leong on Friday.
Leong acknowledged that the gaming industry is entering a deep adjustment phase, while its revenue has been going down for seven straight months. “This reflects a new situation for Macau’s overall economy. The government will closely observe its development,” he stated to the media after a plenary session of the Standing Committee for the Coordination of Social Affairs (CPCS).
According to the secretary, gaming revenues in the first two quarters this year are predicted to extend the decline as long as there are no major changes in external factors.
“As to whether the new tourism resorts’ coming on stream in the second half of the year will bring a positive turn to the gaming revenue and visitor volume, the government will make observations with a prudent attitude,” he added.
Nevertheless, Leong said that the government has enough conficence to cope with the current situation, as in the last 15 years, “it has built a stable fiscal reserve.”
On the other hand, the secretary sees the adjustment phase of gaming revenue as a “basis” for Macau to strive for adequate industrial diversification, which can help the casinos to reach diversified tourist sources and help the city reduce its dependence on gaming revenue.
“It also points out a new direction for enterprises’ business concepts and for the workforce’s career planning,” Leong stressed, adding that such a moment allows Macau to better appreciate the Central Government’s previous call for “preparing for the potential crisis.”