PROSPERITY INDEX ESTIMATED TO RUN LOW FROM JUNE TO AUGUST

Based on a series of factors, the Macau Economic Association (MEA) has estimated that the city’s Prosperity Index will be dissatisfactory between June and August.

Justifying the estimates, the MEA cited the change of modes of tourism and spending as key factors having a significant impact on the index.

It pointed out that the structure of tourist arrivals has seen a transformation. Recently, nearly 40% of tourists in the city have been from Zhuhai, meaning their need for overnight hotel stays was small, the association explained.

Worse still was that 70% of the city’s tourists were not staying overnight.

Meanwhile, there were 8% more tourists in Macau in the first quarter of this year than the same quarter last year. However, the city’s retail revenue slipped downward by 0.6% year-over-year, while gross gambling revenue (GGR) plunged by 24.8%.

Although March tourist arrival counts were better than the previous month, it accounted for only about 20% of pre-Covid levels, with metrics such as GGR, casino operators’ stock prices and hotel occupancy declining as a result.

Internally, the city is faced with a falling trajectory of consumer confidence in mainland China. In April, the mainland recorded a Consumer Confidence Index that was 28.6% lower than the same month last year. The index this April stood at 86.7 points. It fell by 23.4%, even when compared with the March index this year.

Source: https://macaudailytimes.com.mo/prosperity-index-estimated-to-run-low-from-june-to-august.html