Macau Chief Executive Ho Iat Seng said Monday he expects the government’s budget to be in surplus next year.
The three-year COVID-19 pandemic, which ran from early 2020 to early 2023, caused Macau’s gaming revenues to fall dramatically, resulting in a deficit for the government. Despite Macau reopening its international borders on 8 January 2023, gaming revenues have not fully returned to pre-pandemic levels, with the government still in the red in 2023.
Speaking to the media after attending an event on Monday morning, the Chief Executive said Macau’s basic reserves had survived the pandemic years to return to a balanced position in 2024.
“Macau has been in a healthy financial position for 25 years since the establishment of the Macau SAR, with no external or domestic debt, and this year’s budget is balanced,” he explained. “Next year (2025), it is expected that finances will return to surplus.”
Gaming revenue remains the main source of income for the Macau government, with statistics showing GGR of MOP$183.1 billion in 2023 with gaming tax revenue of MOP$65.3 billion. This gaming tax was 241% higher year-on-year although 42% lower than in 2019.
The government has repeatedly emphasized that it wants to reduce its reliance on the gaming industry in future, and on Monday Ho also stressed once again that diversification is key.
“The Macau SAR government proposed the development of diversified industries during the pandemic,” he said. “We have identified different types of non-gaming development in Macau and have proposed the four major industries (Big Health, modern financial services, high technology, and MICE, culture and sports). It is believed that the four major industries will be better developed in the next five years.”
Ho also commented on reports that the government plans to use a vacant plot of land located alongside SJM’s Grand Lisboa Palace in Cotai to build a large-scale outdoor performance venue capable of hosting considerably more than the 50,000-person capacity originally planned.
“The government has already found a new outdoor performance venue,’ he said. “This venue is close to a five-star hotel and can accommodate up to 80,000 people, so it will not affect the residents.”
More details of this project will be announced soon, Ho added.
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