Macau cuts gambling revenue forecast sharply

Hong Kong

MACAU slashed its monthly gambling revenue forecast 27 per cent, as the city's chief executive pledged a five-year plan to make the world's largest gaming hub less dependent on casinos.

The city expects average gross monthly gaming revenue of 20 billion patacas (S$3.42 billion) this year, down from an earlier estimate of 27.5 billion patacas, Chief Executive Fernando Chui said on Monday. Macau has entered an "adjustment" period of slower growth and needed to develop a broader range of attractions to draw tourists from around the world, he said.

"We think this is pretty pessimistic, though it may be better for an official to slash things so much that they can then eventually get into positive revision mode from a low base," said Tim Craighead, head of Asian research at Bloomberg Intelligence. "If they use this as a base assumption, it emphasises the need to diversify the economy, which is already in the plans." Chinese President Xi Jinping has called on Macau to move beyond gambling as his corruption crackdown and a slowing national economy keep high rollers and middle-class patrons alike away from the tables. Gaming revenue is expected to fa…