How many years the Chinese government is urging Macau to diversify.......its unbelievable,.....the light rail takes ages, the population always complains, are unfriendly and are used to be overprotected.....the macau skies are still controlled by Air Macau.....etc........
they are even worse than the portugese, also full of themselves when in reality its the most backward country in Europe

How many years the Chinese government is urging Macau to diversify.......its unbelievable,.....the light rail takes ages, the population always complains, are unfriendly and are used to be overprotected.....the macau skies are still controlled by Air Macau.....etc........
they are even worse than the portugese, also full of themselves when in reality its the most backward country in Europe

It is just political rhetoric, definitely a big disappointment for investors and businessmen. Sands has been actually the one who is pushing to diversify Macau into convention, entertainment business but yet they are in huge trouble now. I also don't know how long China can sustain to limit the visa to Macau when the casino in Singapore opened up and its citizens can then just fly to Singapore to gamble there?

Yes, you are right about Macau, the only advantage is the legally monopoly gambling licensed city in China. Other than that, the government has been slow in everything. Budget is in huge surplus but ferry terminal and airport is still 3rd world standard, taxi still in shortage, public infrastructure still lag behind (they have been talking light rail for so long, I am not even sure if the construction has begun yet). I think behind that political rhetoric, China Central government is quite pissed with Macau too...I know it is not possible, but Macau should just outsource its public admin to Hong Kong government. But having said that, they are still better than the Portugese...that was a real nightmare!!!

I don't want to offend anyone .... but if anyone want a better Macau, just make Macau part of Hong Kong Special Administrative Region

Information from the Statistics and Census Service indicated that Macao registered 501,535 visitor arrivals in package tours in December 2008, up by 16.2% from a year earlier. Visitors from Mainland China (346,570) and Taiwan, China (37,106) increased by 18.4% and 32.8% year-on-year respectively, while those from Hong Kong (32,534) decreased by 10.8%. For the whole year of 2008, visitor arrivals in package tours rose by 15.8% over 2007 to 4,902,029.

The number of Macao residents travelling outbound in package tours decreased by 11.3% year-on-year to 22,668 in December 2008. Mainland China (77.2%); Taiwan, China (6.2%); and Japan (5.4%) were the three most popular tour itineraries. In 2008, Macao residents travelling in package tours rose by 8.1% over 2007 to 229,188.

Meanwhile, 33,074 residents travelled outbound under individual arrangements using services provided by travel agencies, up by 11.7% over December 2007. Hong Kong (47.3%), Mainland China (22.9%) and Taiwan, China (10.6%) were the major destinations. In 2008, outbound residents travelling under such arrangements dropped by 2.5% year-on-year to 377,229.


At the end of December 2008, the number of guest rooms available in the hotel sector increased by 1,342 (+8.3%) from a year earlier to 17,490 rooms.

In December 2008, a total of 617,501 guests checked into hotels and similar establishments, up by 16.8% year-on-year; the majority of the guests came from Mainland China (48.3%) and Hong Kong (23.0%). The average hotel occupancy rate for December 2008 dropped by 4.1 percentage points year-on-year to 79.0%, with 4-star hotels leading at 87.6%; in addition, the average length of stay of hotel guests dropped by 0.02 night to 1.4 nights. Total number of hotel guests reached 6,537,661 in 2008, up by 13.9% over 2007; the average hotel occupancy rate for 2008 decreased by 2.7 percentage points from 2007 to 74.5%.

For 2008 as a whole, visitor-guests staying in hotels accounted for 43.5% of the total number of tourists, up from 42.0% in 2007.

^^^^
I usually ignore most of above, apart from Hotel visitors (up 16.8%), which probably is second most important indicator after gaming revenues.

It looks like this is doing quite well, with most places envious if they had this growth. Macau is also managing to convert more of the day trippers into hotel stays (tho up very marginally).
However, occupancy is down, which isn't surprising giving big increase in supply over last year (guess Four Seasons, Point Neuf etc being main ones).

However, given Venetian/LVS hugely disappointing results (huge loss), these figures still show that gaming (esp VIP) by far more important that visitors/stays. This may be good for long-term appeal of Macau as a destination, but still cannot compensate for loss of VIP gaming revenues (from financial turmoil, visa restrictions) - this poor showing partly reflected in Four Seasons hotel (5+ star) only at 30+% occupancy......

A friend of mine who supplies toiletories to hotels around the world, and according to her, there orders been cut by more than half reflecting hotel business has been cut by half as well.

So in the case of Macau tourism, it is doing relatively well compare to other tourist markets.

With regard to Macau investment, it is still a city going to places, so one day when the market rebounds, your Macau investment will surely also rebound.

Just be patient (just remember, had you had money on HSBC or other blue chips, you would have lost a lot more money)

Happy 2009.

Have had agents trying to convince me financing is very difficult (ie 50% mortgage, low valuation (eg as low as 3k psf for One Central).. I think agent trying to drive down price to do his deal.

Today read HK newspaper, saying Macau can get 70% mortgage at P-1.5% (ie approx 3.5-3.75%).

Prices definitely has been very volatile. Some sales definitely distressed, tho others have been flat on purchase price of 2 years ago (so market is probably similar to SG and maybe HK... expensive units have fallen more compared to cheaper units as financing had been difficult). And also I think some investment bankers who piled into properties (some for sure I know went into Macau) had to pull out as they lost their jobs, so cannot finance their (big) luxury properties.

However, have detected signs of upturn in HK this week with lots of inquiries for my HK unit. Today read 140 units sold past few days at Cullinan HK (ultra, ultra luxury at approx HKD20k psf). Likewise, past week has seen very good responses to new sales in SG.
This suggest market definitely thawing following credit freeze from late last year. I think Macau likely to see similar soon.
This doesn't mean market will rise at all, but definitely suggest nearing bottom (at least if there is no further bigger crisis coming).

For One Gratai Units, people have been able to get pre-completion confirmed loans at 70% valuation, most up to p-2.875 (ie interest 2.375%).

Have had agents trying to convince me financing is very difficult (ie 50% mortgage, low valuation (eg as low as 3k psf for One Central).. I think agent trying to drive down price to do his deal.



The same agent that tells you financing is very difficult will turn around and tell the buyer it is the bargain of the century that s/he has to buy it before the turnaround...

Friday, 03 April 2009
China opposed labelling Hong Kong and Macau as tax havens in a list proposed at the London G20 summit, Chinese Foreign Ministry spokesman Qin Gang said in Beijing yesterday.
“China actively supports the international community's efforts to tighten financial regulation, crack down on tax evasion, and international co-operation to prevent tax evasion,” Qin told a regular press conference.
However, “it is groundless to label China's Special Administrative Regions of Hong Kong and Macao as tax havens, to which China expresses firm opposition,” he said.
At the ongoing G20 summit, some countries proposed a blacklist of tax haven areas, in order to take measures against areas considered uncooperative with the Organisation for Economic Co-operation and Development.
As a responsible country, China proposed at the very start of the global financial crisis the international community should enhance co-operation and weather the financial crisis together, Qin said.
“China plays an active and constructive role in the international community's discussion on tackling the international financial crisis, reform of the international financial and monetary system, and tightening financial regulation,” he said.

come on here and there...how much money are they hiding in macau including all the heads of state of europe ? check out how many banks there are in macau....

Tax evasion involves much more than banks, it requires that one conceal both income and assets. The preparation of the list of tax havens is a power play—those loosing economic power are interested in collecting as much tax revenue as they can while on the downward slide. And they seem to need everyone's help to do it. It seems that if a political jurisdiction does not effectively control all economic transactions within its borders and provide that information to other jurisdictions, the West views it as a tax haven.


Macau does not have an invasive government sponsored income and financial transaction reporting system. Macau banks do not report individual bank deposits or interest earnings to any government agency—in or out of Macau. Real estate and domestic stock transactions are government tracked through registration and stamp tax, however, virtually all commercial real estate transactions are undertaken using BVI companies. Stock transactions of non-Macau registered companies are not systematically tracked and reported to any government agency—even if they are owned by Macau residents or Macau companies. Appreciated real estate (or other property) can effectively be sold tax free by transferring the stock of the BIV company in whose name the real estate is held. Combine this with Macau’s low tax rates and less than precise tax law and there is no doubt in my mind that if one wanted to evade foreign tax (non-Macau tax), Macau would be a reasonable choice for a place to do it. Having said this, Macau does a pretty good job of collecting tax due to Macau under Macau law from employees and from companies of significant substance which they classify as Group A companies. Tax compliance in Macau by small business is a bit “loosey goosey”.

This is not good for Macau. Inflaction is rising every single day...

Inflation in Macau totals 7.11 percent in March [ 2009-04-22 ]


Macau, China, 22 April – The inflation rate in Macau in March was 7.11 percent, in a month in which prices saw a rise of 0.43 percent against the previous month, the region’s Statistics and Census Bureau said in Macau.

The Bureau said that against March of 2008, the Consumer Price Index (CPI) rose 2.35 percent, with significant rises in the categories of Clothing and Footwear (12.93 percent), and Food and non-Alcoholic Drinks (9.49 percent).

The categories that saw decreases include transport and education, which fell in March 8.88 percent and 7.49 percent, respectively, when compared to March of 2008. This was due to the drop in petrol and airline ticket prices, as well as a rise in the subsidy attributed by the government to its students.

Against February 2009, March's figures saw significant rises in the categories of Food and Non-Alcoholic Drinks - 1.32 percent - and Clothing and Footwear - 1.19 percent. (in www.macauhub.com)

WOW deflation in other parts of the world, this comes as a surprise

Macau business people insist that the project should be seen as a genuinely delta-wide structure, and not just as a bridge between Hong Kong and the west bank of the estuary. Consequently, its design should, ideally, include as many access points in the delta as technically feasible. Macau, which functions as a separate customs territory and a free port, is a founder member of the World Trade Organisation. :)

Macao's CPI up 2.57% in February
MACAO, March 22 (Xinhua) -- Macao's composite CPI (consumer price index) for February 2010 increased notably by 2.57 percent year-on-year to 103.27, according to figures released on Monday by the city's Statistics and Census Service (DSEC).

Price indices of Recreation and culture, Transport, Clothing and footwear, Miscellaneous goods and services, and Food and non- alcoholic beverages rose by 8.64 percent, 7.87 percent, 7.84 percent, 7.33 percent and 4.82 percent year-on-year respectively in the period, the DSEC said.

Compared with January, the Composite CPI for February increased by 1.11 percent, the figure also showed. For the 12 months ended February 2010, the average composite CPI rose by 0.78 percent over the preceding period, according to the DSEC. http://news.xinhuanet.com/english2010/china/2010-03/22/c_13220756.htm

Macao's forex reserves reach 18.73 bln USD in February
MACAO, March 22 (Xinhua) -- Macao's foreign exchange reserves amounted to 18.73 billion U.S. dollars at the end of February 2010, according to the preliminarily-estimated figures released on Monday by the Monetary Authority of Macao Special Administrative Region (SAR).

The reserves rose 1.5 percent from the revised value for the previous month and when compared with the same period last year, the reserves increased 13.8 percent, the Monetary Authority said.

Macao SAR's foreign exchange reserves at the end of February 2010 represented 30 times the currency in circulation.

Meanwhile, the trade-weighted effective exchange rate index for the pataca, a gauge of the domestic currency's exchange rates against the currencies of Macao's major trading partners, fell 2. 97 points year on year to 90.28 in February 2010. http://news.xinhuanet.com/english2010/china/2010-03/22/c_13220754.htm

Inflation may top 8 pct in 2011: economist
22/01/2011 03:32:00 Vítor Quintã

Food and non-alcoholic drinks increased 4.8 percent in the last 12 months, helping to push yearly inflation to 3.92 percent
Although yearly inflation dropped slightly last month, consumer prices could jump by more than 8 percent this year, economist Albano Martins told Macau Daily Times.
According to the Statistics and Census Service (DSEC), in December the inflation was down by 0.01 points to 3.92 percent. This indicator dropped by a second consecutive month after reaching a 21-month high in October (3.95 percent).
In comparison with the same period of 2009, the rise was mainly felt in transport (up 6.9 percent), as gasoline and airfare became more expensive, but also in health services (up 6.1 percent). Food and non-alcoholic drinks (up 4.8 percent) – which represent almost a third of the Macau families’ budget – and clothing and footwear (up 4.1 percent) also increased markedly.
The only significant decrease was felt in the communication index (down 3.6 percent), because of cheaper mobile phone services.
Still, DSEC stressed, the average inflation for the whole of 2010 stood at 2.8 percent. This figure is below the 3 percent mark that the Chief Executive had set as the standard to take action.
However, Martins said, the yearly inflation has been well above 3 percent since September. “It’s only 2.8 percent because there were some slow increase periods in the first few months of 2010.”
“But the price index tends to be a cumulative process,” he warned. “I made a small simulation and, if all the economic situation remains as it was last year, the average inflation for 2011 will skyrocket to 8.27 percent,” the economist said.
All factors are pointing to an even higher inflation, he added. “Macau is on a very strong growth trend and it’s unlikely this year’s growth will be less than two-digits.”
Furthermore, imported inflation from mainland China is rising and the Yuan will further appreciate, Martins warned.
“The Government must stay alert because even if the existing subsidies are extended, it will be nearly impossible for the inflation to remain below 5 or 6 percent,” he said.
“The root of the problem remains unsolved and in some cases, namely the imported inflation, there is nothing the local Administration can do.”
The Government has already decided to bring forward the cash handout to local residents to the beginning of 2011, rather than between July and September as usual. Households living in social housing units will be exempt from paying rent between January and March, while families receiving financial aid or special allowances from the Social Welfare Bureau will get an extra one-month assistance in 2011 and food bank services will be reinforced

Renminbi goes up, Dollar goes down. Here it is - the inflation jumps!

Monetary authority alerts for inflation spike in 2011

Posted: 1/25/2011 2:56:41 PM Excellent! Very Good Good Fair Poor Rating: 0% ( votes)

Inflation is set to continue going up in 2011, warns the Monetary Authority of Macau.

“Inflationary pressures are likely to intensify in 2011,” the authority wrote in its latest Monetary and Financial Stability Review, published in late January.

The inflation rate for the whole of 2010 stood at 2.81 percent. Prices started to climb towards the end of the year, with the Composite Consumer Price Index for December 2010 rising by 3.92 percent year-on-year.

Aside from inflation, the authority’s crystal ball for 2011 shows mainly blue skies ahead. “The economy is predicted to expand at a high-single-digit rate in 2011 under the key assumption that gross gaming receipts grow annually by an approximate 15.0 percent.”

Such an estimate may be considered to be conservative, as several analysts predict gaming revenue to rise up to 30 percent this year.

Local interest rates are “likely to stay at low levels for the whole course of 2011.”

The Monetary Authority notes that the city has reached full employment, with the jobless rate staying below 3.0 percent. The lack of available manpower will meanwhile push wages up.

Finally, the property market is anticipated “to stabilise in 2011.”

Macao's per-capita GDP reaches 49,745 USDSunday, March 27, 2011 9:02 PM
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MACAO, Mar. 25, 2011 (Xinhua News Agency) -- Macao's GDP for the whole year of 2010 reached 217.32 billion patacas (27.16 billion U.S. dollars), with per-capita GDP amounting to 398,071 patacas, the city's Statistics and Census Service (DSEC) said on Friday.

According to the figures, Macao's GDP rose by 26.2 percent in real terms last year and economic growth for the fourth quarter of last year stood at 27.9 percent in real terms.

Macao's per-capita GDP of 2010 rose by 94,079 patacas over 2009, an increase of 25.8 percent year-on-year.

The DSEC said that revival of the world economy and the robust economic growth in the Chinese mainland created favorable conditions for a rapid rebound of Macao economy.

As a result, gross gaming revenue and total visitor spending of last year soared substantially upon outstanding performance of the tourism and gaming sector.

In respect of the GDP structure, the notable increase in exports of tourism and gaming services pushed up net exports of goods and services to surge by 66.8 percent, far higher than the level of economic growth, bringing its relative importance to GDP to rise apparently from 41.9 percent in 2009 to 55.4 percent in 2010, the DSEC said.

(Source: )
(Source: Quotemedia)

In cases like Macau, this number is already meaningless in determining the economic state of the general population. It's a nice number to throw around.

I'm more curious to see how the wealth is distributed amongst the demographic.