Macau’s Chief Executive, Ho Iat Seng, said in the Macau Legislative Assembly that gaming tax revenue should not account for less than 40% of Macau’s total government revenue in the future.
On Tuesday (9 August), Ho Iat Seng attended the Legislative Assembly meeting and responded to questions from individual legislators.
When asked about the future diversified development of Macau, he responded by pointing out that “gaming industry and convention and exhibition are the main industries in Macau. The gaming tax revenue in the future should not be less than 40% of the government’s total revenue, because gaming tax revenue is very important to the government.
“If the gaming revenue accounts for 40% of government total revenue, I believe it will be enough to support the operation of society … but it will not even be as high as 30% in 2020 and 2021.” [Ed: “as high as 30%” is somewhat misleading, as the government counts transfers from the government’s own reserves as revenue.]
He said, “Macau’s gaming revenue will only account for 21% of government revenue in 2020 and about 28% in 2021. The catering industry accounted for 2% and 20% was from the financial and insurance industries in 2021.”
The Macau government’s total revenue in 2020 was MOP$103.3 billion, of which MOP$46.5 billion was transfers from government’s own reserves and only MOP$24.1 billion was gaming tax.
In 2021, the Macau government will have revenues of an estimated MOP$120 billion (actual figures not yet released) including gaming tax revenues of MOP$34 billion.
For the year 2022 to date, gaming tax revenue will only be MOP$10.6 billion.
Macau can no longer rely on mainland visitors
The Chief Executive also mentioned the concessionaire tender process in the Legislative Assembly. He said he hoped that the new bidders would move in the direction stipulated in the bidding tender and protect local employees.
He pointed out that “the current gaming industry environment is different from the past, it is impossible to rely on mainland Chinese customers, casinos have to develop foreign visitors.”
Ho also pointed out that Macau should diversify its industrial development, including the development of the technology industry. “The new industry of artificial intelligence is a future development, and the Metaverse is part of future development plans for Macau technology.”
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