Investment bank Jefferies has painted a positive outlook for the growth trajectory of Macau.
The prosperity of the region can be significantly boosted by stabilising China consumer sentiment and normalised competition from regional travel destinations in 2025.
As reported by InsideAsiaGaming, the investment update said: “With 70% of its annual visitors from mainland China, the state of the economic environment is most important.
“Due to weaker than expected macro trend, investors in general felt that there was downside risk with limited visibility until the end of September. With stimulus policies announced in late September 2024 to support the economy, we expect no further deterioration on consumer sentiment.”
In terms of growth of visitors, there is also expected to be progress for the region normalisation can bring in gaming and non-gaming tourists according to the group.
“We expect 5% visitor growth in 2025 and mainlanders to account for 71% of the total tourist arrivals in 2025“, the note stated.
The region has recently come under new leadership after Sam Hou Fai, ran uncontested to become the Chief Executive of Macau.
Having once sought to focus on diversifying the region’s economy away from gaming, he has since underpinned his support for the sector.
The incoming CEO stated at a press conference: “The gaming industry is Macau’s primary industry, and if it does not develop healthily, it will have far-reaching consequences. The new government will strictly enforce the new gaming law to protect and supervise the healthy and orderly development of the six concessionaires.
“The new government will require and supervise the concessionaires to monitor their non-gaming investments of MOP$130bn in accordance with the contractual requirements, so as to promote the diversified development of the Macau economy.”
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