Macau Economy Holds Steady on Tourism and Gaming, But Consumer and Property Weakness Linger

The city’s overall economic climate index stood at 5.8 in June and 6.0 in July, a level classified as “stable.” Looking ahead, the association expects the index to hold between 5.9 and 6.0 from August to October, suggesting that the current pace of growth is likely to continue in the near term.

Tourism and gaming continue to anchor Macau’s recovery. Visitor arrivals in June averaged 96,400 per day, only slightly lower than in May, while hotel and apartment occupancy rates rose 5.6 percentage points to reach 88.4% — levels deemed “overheated” by analysts. The gaming sector posted another strong performance, with gross gaming revenue surpassing MOP 21 billion (US$2.6 billion) in both June and July. Average daily revenue reached MOP 702 million in June and MOP 714 million in July, keeping the industry firmly in stable territory. The solid gaming results helped lift the share prices of Macau’s six casino concessionaires, which moved from “sluggish” to “weak” levels in July.

However, beneath these headline numbers, consumer sentiment and the property market remain subdued. Mainland China’s consumer confidence index stayed weak in June, dampening spending appetite in Macau’s retail sector. The city’s residential property price index fell to 196.1, slipping below the 200-point mark for the first time in years. This decline reflects both tepid local demand and cautious investment activity. The household loan-to-deposit ratio inched up to 50.1%, yet remained near a decade-low, pointing to limited credit flow into the real economy despite the broad money supply (M2) hitting a record MOP 824.8 billion in June — up 9.8% year-on-year.

Non-gaming expenditure showed some improvement, climbing 4.6% year-on-year to MOP 18.25 billion in the second quarter. But on a per capita basis, spending actually fell 12.3% to MOP 1,950, indicating that while total outlays rose, individual visitors were spending less outside casinos. This imbalance underscores the challenge Macau faces in diversifying its economy beyond gaming. Analysts warn that without stronger consumer confidence, a healthier property market, and broader economic participation, the city’s reliance on tourism and gaming will remain a structural vulnerability. Still, with steady visitor inflows and resilient gaming revenue, Macau enters the coming months on a cautiously optimistic footing.