Macau’s economic outlook is being affected by China’s slowing economy and greater foreign competition, highlighting the need for the world’s largest gambling hub to diversify from its casino business, Bloomberg News reported, citing MGM China Holdings (02282.HK) co-chairman Pansy Ho.
“I’d say the slowdown in the economy and the fact that now the foreign destinations might become competitors” are the biggest risks to Macau’s growth, Ho told Bloomberg Television in Hong Kong.
She fears the city could gradually lose its appeal to mainland Chinese tourists, who have been fueling Macau’s growth for years. “We’re already beginning to see that the customers coming through our doors are more demanding, they now know how to differentiate,” Ho was quoted as saying.
She said Macau should reduce its reliance on the casino business, which saw US$45 billion in revenues last year. MGM China and other casino operators in the territory have added shops, restaurants and entertainment shows to draw mainland travelers as high-stakes gamblers cut spending amid a cooling Chinese economy, the report said.
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