The gaming industry of Macau has successfully maintained a “healthy“ development for the period of 2016-2018, according to the so-called “mid-term review” conducted by the local government last Wednesday. It was considered quite a progress when Macau’s first five-year development plan is considered. The central government of China has had many five-year plans intended for the mainland economy ever since the foundation of the Communist Party of China in 1949, but this was something completely new for the governmental system of Macau.
The before-mentioned phrase “healthy development” is typically used by the officials of the Macau government when they think of their casino sector, sometimes in the meaning of the pace of the expansion in Macau’s GGR ( Gross Gaming Revenue).
Five-Year Development plan of Macau was officially announced in September of 2016, and it had a couple of economical and social aspirations for this city. Several targets were completed when the first year of the development plan came to an end. This five-year plan is intended from 2016 to 2020. Limits or targets for casino gross gaming revenue weren’t set. Although the plan did mention a few aspirations regarding the local gaming sector.
Those aspirations were that the gaming sector should probably: strengthen gaming regulations and policies; expand the proportion of the revenue which is non-gaming in comparison to the whole revenue that they generate; they should definitely concentrate on the quality of jobs as well as the employment chances available to the ID holders of Macau at the nearby casino resorts.
As it is written in the mid-term review of the five-year-old Macau plan, the non-gaming revenue of NGR accounted for in the year 2018 is precisely 9.97% of the whole revenue, which was generated by the casino operators of Macau. In the previous year, it was 10.36% of the entire revenue, while in 2016, it was 10.7% of the total revenue.
The figures have definitely exceeded the expectations of the Macau government, as it was stated in the mid-term review. The grand five-year plan has noted that the NGR or the non-gaming revenue accounting for a minimum of 9% of the entire revenue generated by the casino resorts by the revenue of 2020.
Another goal of that plan is to boost casino operators’ acquirements of local services and products as a proportion of their entire spend on outsourced supplies. In the year of 2016, those local supplies were about 58% of that spend; in 2017, the supplies were %62.69 of that spend, and in 2018, they were 65.04%, according to the mid-term review.
In the five-year Macau plan, there was also an objective of reducing to 76% by the year 2020, the proportion of gaming workers in Macau without having higher education as opposed to 80% in 2015. That goal was almost a reality in 2016 when somewhere around 77.8% of the gaming workers in Macau were without higher education. In 2018, it stood at 75.9%.