The plans involve raising minimum wages, expanding employment support programs, and implementing measures to maintain economic stability amid external challenges such as US tariffs
Analysts at Seaport Research Partners think Beijing’s new economic stimulus plans will have a big impact on Macau’s gaming industry. China introduced these plans to get people to spend more money. Experts believe this will lead to more disposable income and make consumers feel better about spending, which will help Macau’s casinos in the long run.
Macau’s Casino Revenues Could Rise as China Focuses on Boosting Consumer Spending
The announced Special Action Plan for Boosting Consumption lays out several tactics to raise income levels and stabilize China’s financial markets. These plans include hiking minimum wages, growing employment support programs, and putting steps in place to ensure economic stability in the face of outside pressures like US tariffs. Experts think these policies will have a positive impact on Macau’s gaming revenue in the base mass market sector, which has had trouble bouncing back to levels seen before the pandemic.
The premium mass gaming sector has bounced back after the pandemic, but base mass gaming has not kept up. This part of the market, which includes tourists who spend less, is still struggling. Reports show that gross gaming revenue (GGR) from this group is still about 15% below 2019 levels, with overnight visitors not spending as much. Instead, day-trippers from Guangdong and Hong Kong have been propping up the market.
Seaport’s lead analyst Vitaly Umansky pointed out that China’s new focus on spending at home should boost the recovery of the base mass market. He stressed that although the plan does not include direct cash handouts to citizens, the government’s push to create more income options, keep financial markets steady, and give subsidies for essential consumer needs will spark more spending.
Umansky noted that the announced steps showed a clear change in priorities. The focus shifted to boosting consumer trust and beefing up household buying power. In his opinion, this could have a long-term effect on Macau’s gambling income.
Relaxed Travel Rules and Economic Boost May Fuel Macau’s Gaming Recovery
The recent stimulus measures might also boost Macau casino stocks, which have struggled due to lower consumer confidence and instability in China’s financial sector. Companies that focus more on mass-market gaming, like Sands China and Galaxy Entertainment, will see the biggest gains if more consumer spending leads to more visitors.
Experts in the industry think that relaxed travel rules and more government backing for tourism could help Macau’s casino sector even more. The recent expansion of visa policies is already making it simpler for mainland tourists to visit Macau, which bodes well for gaming operators.
Even with ongoing financial troubles, like trade fights between the US and China, experts still feel good about Macau’s future growth. They think the Chinese government’s new plans show they want to boost spending at home, which could help Macau’s casinos bounce back.
Umansky stated that the government’s ongoing support for the economy and better consumer confidence would bring more regular gamblers back to Macau in 2025 and later years. He also mentioned that this combined with more high-rollers, should give Macau’s casinos a strong base to grow from.
As China keeps rolling out plans to prop up its economy, Macau’s casinos are likely to benefit from people who feel more secure about their money and are ready to spend. This is going to help Macau keep its spot as a global top gambling destination.
