The main representative of Beijing in Macau – Li Gang – shared over the sidelines of a cocktail party to celebrate the Chinese New Year that “an interim development period” had started in the casino industry of the administrative region. According to the official, such a temporary development would provide the city’s casino commerce with an opportunity for stability and future growth.
According to reputable media, Mr. Li commented: “After ten years of rapid development, the gaming industry has entered an interim development period.”
Mr. Li Gang, who is the director of the Central People’s Government Liaison Office, also revealed that he does not regard the gross gaming revenue decline for eight straight months to e something out of the ordinary. Mr. Li added that in spite of the fact that GGR affect the gross domestic product (GDP) of Macau to some point, the latter is not expected to decline to the levels it did over the SARS period (the period between November 2002 and July 2003).
In addition, investment analysts forecast the GGR to fall for a ninth consecutive month in February.
Some investment analysts have previously announced that the decline of the gross gaming revenue in Macau was partly due to local policy rather than to market forces. The analysts have still mentioned the overall China’s economy decrease as one of the main forces that have severely affected the credit-based system in the region.
However, the economy decline is not the only factor that has been having an impact on the regional situation. Other factors cited by investment specialists include cooling effects not only on the VIP play, but also on the mass-market play, which are associated with some initiatives of the central and local government.
The actions related to the government’s moves also involve the decisions, which have been recently made by the President Xi Jinping. The latter has put restrictions and tighter enforcement of the transit visas’ rules. He also did not allow the expansion of China UnionPay facilities within casinos, as well as the use of UnionPay devices that can be used by players to make payments.
In addition, the anti-corruption campaign started by the President Xi Junping, which is expected to get even more intensified, has become the reason why most high-rollers stay away from the casinos in Macau and do not engage themselves in expenditures that may seem suspicious. The latter includes betting large amounts of money at the casino tables in Macau.
