Macau’s casino-dependent economy could face significant challenges as Thailand moves to legalize gaming and Macau struggles to develop new non-gaming attractions, according to two industry analysts reported by Lusa.
While Macau’s gaming revenue has rebounded to 74% of pre-pandemic levels, the region remains heavily reliant on tourism and casinos. Local authorities anticipate gaming revenue will reach MOP240 billion in 2025, up from MOP208.59 billion in the first 11 months of 2024.
“There has been an incredible economic recovery in the casino sector and everything linked to tourism, hospitality, and dining,” said Carlos Cid Álvares, president of the Portugal-China Chamber of Commerce and Industry. However, he noted “no growth or even a decline in small businesses” outside casino areas.
Analysts warn that Macau’s dominance could be threatened by Thailand, which is preparing legislation to allow integrated gaming resorts similar to Macau’s. Thailand welcomed 26 million visitors in the first nine months of 2022 and aims to reach 40 million tourists by 2025 — a milestone Macau was close to achieving in 2019.
“Thailand is the greatest challenge for any gaming jurisdiction in Asia,” said Ben Lee, managing partner at gaming consultancy IGamiX Management and Consulting Ltd (Macau).
He argued that Thailand’s diverse attractions give it an edge over Macau, which is limited to casino-focused offerings.
Lee suggested Sam Hou Fai’s legal background may help address “Macau’s bureaucracy and entrenched interests,” but warned that operators have primarily focused on promotion outside China and entertainment, rather than concrete infrastructure investments.
“These companies are doing what they’ve always done: making promises, keeping a low profile, doing the bare minimum to survive, and waiting,” Lee lamented. Victoria Chan
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