Gaming boosts Macau retail
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Macau retail and wholesale has tripled in value thanks to the knock-on effect of the territory’s gaming industry.
Macau government research shows that as the gaming industry has developed, it has scaled up the added value of other industries. Conducted by Institute for the Study of Commercial Gaming at the University of Macau, the report looks at the spread of added value through gaming in Macau over the 10 years to 2013.
The gaming industry was liberalised in 2002, and this is the first report following a mid-term review on the sector. It notes that the added value of the gaming industry has increased 6.9 times in the 10 years, with the hotel industry increasing 11.4 times.
Data from six gaming companies showed that their non-gaming activities created an income of 23.2 billion patacas (US$2.9 billion) in 2014, while the total non-gaming spend of tourists in Macau is comparable to that of Las Vegas.
Gaming dominates the Macau economy with a 58.3 per cent slice of the pie, while the wholesale/retail sector has a humble 5.2 per cent.
Meanwhile, the report will probably help Macau set policy direction for the $30 billion gaming industry as units of casino groups such as Melco Crown Entertainment Group and MGM Resorts International struggle to cope with Macau’s two-year gambling downturn, reports Bloomberg.
Questions & Answers
Q.What percentage of Macau's economy does the gaming industry represent?
What percentage of Macau's economy does the gaming industry represent?
The gaming industry accounts for 58.3 per cent of Macau's economy. In contrast, the wholesale/retail sector contributes a significantly smaller share at 5.2 per cent.
Q.When was the gaming industry in Macau liberalised, and what period does this report cover?
When was the gaming industry in Macau liberalised, and what period does this report cover?
The gaming industry in Macau was liberalised in 2002. This report examines the spread of added value through gaming over the 10 years leading up to 2013.
Q.How much income did non-gaming activities generate for gaming companies in 2014?
How much income did non-gaming activities generate for gaming companies in 2014?
Data from six gaming companies indicates that their non-gaming activities generated an income of 23.2 billion patacas, which is equivalent to US$2.9 billion, in 2014.
Q.What has been the impact on other industries as the gaming sector has developed in Macau?
What has been the impact on other industries as the gaming sector has developed in Macau?
As the gaming industry developed, it scaled up the added value of other industries. The hotel industry, for instance, saw its value increase 11.4 times over the 10 years to 2013.
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