HONG KONG - Plunging casino revenues in Macau, the world's largest gambling hub, are taking a heavy toll on the wider economy, forcing hundreds of businesses to close down and pushing unemployment to its highest level since 2009.
Heavily reliant on casino taxes, which account for more than 80 per cent of government revenue, Macau has had little success in diversifying its economy. Macau's dependence on gambling has been laid bare since the start of the coronavirus pandemic, with visitation rates in the first quarter dropping more than 80 per cent compared with the same period in 2019 due to Covid-19 travel restrictions. More than 90 per cnof visitors to Macau typically come from mainland China, which continues to pursue a"zero-Covid" policy. May gambling revenues dropped 68 per cent year-on-year to 3.
Cost-cutting and mounting economic losses are evident throughout the tiny territory, home to more than 600,000 people, extending to sectors including retail, industrial and commercial services. In an April report, the International Monetary Fund warned that it would take several years for Macau's economy to return to its pre-pandemic level, with the sharp contraction in activity exposing the city's vulnerability.MBS owner Las Vegas Sands' credit rating cut to junk status by S&P on slower Macau recovery
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