As recently as July, local media reported that, come October, Ho would run for a second five-year term as Macau’s Chief Executive. However, rumors about his future began to circulate after Ho took a month-long leave of absence.
On 21 August, Ho finally addressed the speculation with a statement on the Macau government website: “Due to the fact that my health has not been fully restored, for the sake of Macau’s long-term development… I have decided not to participate in the election for the sixth-term chief executive.”
Ho expressed “profound feelings for Macau” and highlighted that he had “done my utmost for Macau’s development.” One analyst has noted that the leadership change should not significantly impact Macau’s gaming industry.
Leadership amidst crisis: Ho’s tenure as Macau Chief Executive
Ho took over as Macau chief executive at a turbulent time in the city’s history. It was December 2019, just before the first coronavirus case was recorded in the Chinese gaming hub. The decline was swift and severe.
The following February, gross gaming revenue (GGR) toppled 88%. In March 2020, it was down 79.7%. April marked a new low, as GGR tumbled a record 97%, to MOP754m (£72.5m/€85.5m/$95m).
For three years, the special administrative region (SAR) struggled through intermittent shutdowns. It did not fully reopen its borders until January 2023. But the pandemic hastened efforts to diversify the local economy and reduce its reliance on gaming.
In line with their new 10-year concessions, the city’s casino operators have committed to a collective investment of MOP125 million in new developments. Notably, 90% of this investment is dedicated to enhancing non-gaming attractions, including spas, waterparks, and arts and cultural exhibits, aimed at diversifying the city’s offerings.
The funds will be distributed as follows:
| Type of Attraction | Investment (MOP) |
|---|---|
| Spas | 40 million |
| Waterparks | 30 million |
| Arts and Cultural Exhibits | 41.25 million |
| Other Non-Gaming Attractions | 13.75 million |
On 21 August, Seaport analyst Vitaly Umansky commented that Ho’s recent announcement wasn’t surprising, citing Ho’s recent extended leave as a potential factor in the decision-making process.
Projected growth in GGR
Seaport’s recent forecast indicates a promising future for the city’s gaming sector. According to the forecast, Gross Gaming Revenue (GGR) is anticipated to grow to MOP231 billion in 2024, marking a 26% year-on-year increase.
- 2023 GGR: MOP183.3 billion;
- 2024 GGR: MOP231 billion;
- Year-on-Year Growth: 26%;
These optimistic projections are likely to bolster investor confidence and attract more tourists, further enhancing the city’s economic landscape.
Future developments
The new funding is expected to not only improve the overall visitor experience but also provide a significant boost to the local economy. With a focus on non-gaming attractions, the city aims to attract a more diverse range of tourists, potentially reducing its reliance on gaming revenue alone.
In conclusion, the new 10-year concessions and the substantial investment in non-gaming attractions will play a crucial role in the city’s future development, catering to a broader audience and driving economic growth.
