Macau economy expected to experience a 48% recovery in 2023
Macau economy expected to experience a 48% recovery in 2023

Recently, some official data related to the GDP (Gross Domestic Product) of Macau were revealed, which in 2022 suffered a reduction of 26.8%. This sudden decrease was due to the sharp drop in gaming revenues in the Chinese region, which experienced a reduction of 51.4%.

However, according to Fitch, a company specialized in financial analysis of markets, in 2023 there is a great possibility that Macau will be able to recover the bonanza of yesteryear. According to analysts, they should “recover to about half of the 2019 level”. That year, the casinos present in the special administrative region of China managed to raise 33.7 billion euros.

As it turned out, in the first two months of this year, casinos in Macau had revenues of 2.54 billion euros, an amount 55.3% higher than that recorded in the first two months of 2022, and this is the best mark observed in three years.

According to Fitch, with the process of lifting restrictions to control the pandemic in the Chinese region, which began in mid-December last year, there has been a gradual return to tourist excursions, thus boosting the local economy.

Although Macau is seen as one of the gaming meccas, nowadays Brazilian fans of this type of entertainment no longer need to travel halfway around the world to enjoy themselves. This is because, in Brazil, the casinos that accept pay4fun listed on currently operate, online platforms that offer a wide catalog of games that are very similar to those seen at the gaming tables of the most luxurious establishments in the world. , but which are much more accessible and comfortable, since from any cell phone or computer you can have fun for a few hours, with the advantage of being able to use promotional coupons to guarantee various advantages.

Problems with manpower

Fitch also reports that as the months go by, the number of tourists visiting Macau should increase significantly. As a result, establishments in the region should increase their operations and, consequently, hire a larger number of workers.

Since 2019, when the pandemic began, the Chinese region has experienced a loss of 44,700 workers without resident status. The hotel industry was one of the hardest hit, as 17,600 non-resident employees were laid off.

The Macau Secretary for Economy and Finance, Lei Wai Nong, pointed out that hotels have been suffering due to the shortage of labor and because of this, they have been trying to negotiate with companies associated with tourism to find ways to solve this problem.

However, despite the significant economic recovery, analysts point out that the Chinese region for the fourth year in a row will have a deficit in its budget, which will probably be around 10.5% of GDP. Fitch also pointed out that Macau’s economic growth will remain slow, mainly due to the shortage of labor, and that the region should continue to focus its economy on casinos.

Meanwhile, the local authorities claimed that they have plans to strengthen their relations with Portuguese-speaking nations, which is a necessary measure to diversify the local economy and reduce its dependence on luxurious gambling houses.

Las Vegas on the rise

While Macau’s casino industry is still recovering from the damaging effects of the health crisis, gambling establishments in Las Vegas, USA, are operating at full speed. And the revenue raised by these establishments in the US state of Nevada, where Las Vegas is located, broke a revenue record. In 2022, they achieved revenue of US$ 14.8 billion, an amount 10% higher than that recorded in 2021.

The Las Vegas Strip alone, where Las Vegas’ main gambling ventures are located, had total revenue in 2022 of $8.29 billion, at least that’s what the Nevada Gaming Control Board claims.