Synergetic Effect Between Gaming and Non-gaming Elements
Office of the Secretary for Economy and Finance
Press Release
11 May 2016
To promote synergetic
development of gaming and non-gaming elements towards
betterment, quality and integrity of the gaming industry is
both a social consensus and an endeavour of the Macao SAR
Government. As stated in the “Interim Review of Gaming
Liberalization for Games of Fortune in Macao: economical,
social, livelihood impacts and operating conditions of the
Concessionaires” research report, development of the gaming
industry has scaled up the added values of its related
industries. Non-gaming element has created a large amount of
non-gaming job positions. In 2014, non-gaming employees
accounted for 44% of the total number of employees in gaming
operators.
The research report
cited data from the six gaming operators, which shown that
their non-gaming elements created an income of 23.2 billion
MOP in 2014. Currently, total non-gaming spending of
tourists in Macao is comparable to that of Las Vegas.
However, the percentage is diluted as Macao’s gross gaming
revenue is far too high.
The report stated
that synergetic effect exists between gaming and non-gaming
elements. Data has shown that mass gaming revenue accounted
for an increasing proportion of the gross gaming revenue in
recent years. Driven by the market, non-gaming elements in
new investment projects of gaming operators were given an
increasing importance with a view to tap into different
source markets, such as the middle-class and families.
The report analyzed
the synergetic effect of the added value of gaming and
non-gaming industries. According to the added value
calculated using the production approach with current prices
in 2003 and 2013 (Production Tax deducted), the added value
of the gaming industry increased by (6.9 times), while the
hotel industry (11.4 times), wholesale and retail industry
(7.4 times), construction industry (5.1 times), banking
industry (3.5 times) and catering industry (3 times) all
have certain increase. Besides, data has shown that tourists
in Macao participating in gaming activities have also
contributed to non-gaming spending, such as hotel, catering,
retail, entertainment and tourism. On the other hand,
tourists attracted by non-gaming elements have in turn
driven gaming spending.
Impacts of the gaming
industry on local economy, business environment of small and
medium-sized enterprises (SMEs), society and people’s
livelihood are an important topic of the research. The
report pointed out that Macao is now among the forefront
runners of the most developed regions in the world’s economy
thanks to gaming tourism. The most significant positive
impact includes: rapid GDP growth, increased fiscal
reserves, improved social welfare, foreign investment at
record high, increased labour productivity, relatively low
unemployment rate sustained, creation of favourable
conditions to drive the development of other old or new
industries, such as hotel, luxury retail, catering,
convention and exhibition, performance and entertainment
etc. Gaming liberalisation, in the period of 2002 to 2014,
saw a net increase of nearly 35,000 companies in Macao,
covering a wide array of industries.
Rapid development of
the gaming industry has nonetheless brought along negative
impact. Relatively obvious were the persistently high
inflation rate, putting stress on the daily life of the
grassroots and the elderly people, acute rise in housing
prices made them unaffordable to the majority of the public,
some local SMEs faced difficulties due to the hike in
operating costs, gaming-related crime increased, economy and
employment became too dependent on gaming industry, the
challenging of traditional values and so on.
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