The losing spree continues for Macau’s casino gambling industry as Macau casinos post a 3.2 percent drop in revenue for October – the US-China trade war and the continued pro-democracy protests in Hong Kong are to blame.
The decline in revenues is attributed to the decreased footfall of high rollers at Macau Casinos. As the VIP revenue suffers, Macau’s casino gambling industry fails to go positive. However, this isn’t a surprise as analysts have predicted that Macau would not be posting positive figures for any of the months in the final quarter.
While Macau Casinos took 26.4 billion patacas ($3.27 billion) in revenue last month, up from September’s haul of 22.1 billion patacas, the drop was more than what the analysts had predicted – 3% to flat growth.
The International Monetary Fund (IMF) predicts Macau’s gross domestic product (GDP) to fall by 1.3 percent in 2019.
The World Economic Outlook report published by IMF also speculates a 1.1 percent decline in the city’s GDP in 2020 indicating that there is no quick way put for Macau’s casino gambling industry which makes over 80 percent in contribution to the city’s GDP.
The IMF has said that the rate of growth in Macau’s GDP would be 4.3 percent this year.
Amidst the ongoing trade war, the top leaders of both China and the US are scheduled to meet and sign a trade deal. China has suggested Macau as the venue for the signing of the trade deal.
Earlier, Chile’s capital Santiago was shortlisted as the venue for the trade deal in the guise of an economic truce, but following the inadvertent trail of events leading to widespread civil unrest in the country, Macau comes as Dragon’s top suggestion.