Macau reviews six major casinos’ non-gaming investments
Macau’s government has announced a midterm review of casino operators’ mandated non-gaming investments, as part of an ongoing effort to diversify the city’s economy. The review, announced by Secretary for Economy and Finance Tai Kin Ip (as depicted in featured image) on 28 March, will assess how well operators have adhered to their obligations since signing new concession agreements in 2022.
Under the terms of their licences, the six major casino operators, Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts, and SJM Holdings, are required to invest MOP130 billion (€14.6 billion) into non-gaming projects. These investments aim to reduce Macau’s dependence on the gambling sector and boost alternative industries such as tourism, health, finance, and technology.
The push for diversification aligns with the “1+4” strategy introduced by former Chief Executive Ho Iat-Seng, which seeks to establish international tourism as Macau’s core economic driver while building up four key supporting industries.
Macau expands beyond gaming
Macau has long been reliant on its casino industry, with gaming accounting for over 50 percent of its GDP in 2019. In contrast, non-gaming sectors contributed less than ten percent at the time. The government now aims to reverse this ratio, with a target of non-gaming industries making up 60 percent of GDP by 2028.
The shift is already visible. By 2023, gaming’s contribution to GDP had dropped to 37.2 percent, while the four priority non-gaming industries grew by 6.9 percent compared to pre-pandemic levels. Former Chief Executive Ho stated in December that this transformation is making Macau’s economy more stable and resilient.
Despite efforts to attract international visitors, industry experts warn that a severe shortage of hotel rooms is limiting Macau’s potential. Alidad Tash, a senior executive at Melco Resorts, highlighted that Macau has just 46,000 hotel rooms compared to 153,000 in Las Vegas.
The lack of accommodation is a key factor in Macau’s high number of same-day visitors. In 2019, nearly 21 million day-trippers visited the city, spending an average of MOP680 (€76) each. By contrast, overnight visitors spent an average of MOP2,681 (€300), contributing a total of MOP50 billion (€5.6 billion) to the economy.
Fixing tourism loopholes
To address the issue, Macau has been rapidly increasing its hotel capacity. In 2024 alone, the city added 2,900 new hotel rooms, with more developments underway. The Capella at Galaxy Macau and the Londoner Grand Hotel will open later this year, adding thousands of new luxury suites.
Meanwhile, the Macau Government Tourism Office has launched a global campaign, “Experience Macau Limited Edition,” to attract high-value visitors from Europe and the Middle East. Currently, 90 percent of Macau’s tourists come from Greater China, including Hong Kong and Taiwan.
The government hopes that a combination of non-gaming attractions, improved accommodation options, and targeted international marketing will help Macau develop into a more diversified economic hub. The upcoming review will determine whether casino operators are doing enough to meet these ambitious goals.
