Fernando Chui Sai On, the current Chief Executive of Macau, stated that his administration will do its best to make the financial system of the administrative region less dependent on its casino industry. He promised that one of his primary goals during his new term will be to work for the diversification of local economy.
Mr. Chui assumed the office of Chief Executive of Macau on December 20. This is his second term.
On Saturday, Mr. Chui spent time talking to media in Beijing during his yearly visit to Chinese President Xi Jinping and country’s Prime Minister Li Keqiang. The purpose of these visits is for Macau’s Chief Executive to report on the administrative region’s economic development.
During the meeting, President Xi expressed his concerns about the future of the gambling hub. He also pointed to the fact that local authorities need to alter the course of the city’s development and to do their best to make its economy less dependent on revenues from gambling activities.
Earlier this month, President Xi visited Macau where he stated that due measures need to be taken so as for the regulation and monitoring of local gaming industry to be improved.
The gambling hub faced its first economic shrinkage in five years during the third quarter of 2014. According to Macau’s Statistics and Census Service, local gross domestic product for the three-month period ended September 30 dropped by 2.1% year-on-year. The last negative quarterly growth was posted in 2009. What is more, GDP fell by 5.7% as compared to the figures reported in the previous quarter.
It was also announced that revenue from gaming activities constituted 79% of Macau’s GDP.
Monthly turnover from the city’s casinos has been falling since June. After it became clear that administrative region’s GDP has dropped significantly since the first quarter of 2014, it could be said that its economy is practically in a state of recession.
On his first day as a Secretary for Economy and Finance, Lionel Leong Vai Tac said that Macau’s gambling industry is currently in a phase of adjustment. He also stated that new “tools” should be created so as for gaming operators to be able to perceive all non-gaming activities they could start offering in their venues. He pointed as an example of one such tool the assistance of academic institutions in the administrative region.
Mr. Chui promised that he will start examining the existing casino licenses and their prospective renewal between 2015 and 2016. Currently, six gaming operators are holding casino licenses and they are to expire between 2020 and 2022. Back in August, Mr. Chui stated that he would not make any decisions on the concessions’ renewal before carrying out public consultations.
