FOREIGN CASINO OPERATORS HAVE INVESTED BIG IN MACAU

2014/11/19

From：Macau Business Daily

It’s no secret that Macau is all about casinos. They dominate government taxes, drive up tourist revenues and with the Cotai properties in the pipeline it’s no surprise that in terms of foreign investment it’s all about them, again.
The gaming industry attracted 75 percent of all direct foreign investment undertaken here in 2013. Casino operators invested MOP27.8 billion last year, 34 percent more than in 2012, data from the Statistics and Census Office reveals. Total investment by foreign companies totalled MOP36 billion that year.
The increasing flow of money spent by casino operators to build their new properties in Cotai is in sharp contrast to the drop in interest by other sectors. Last year, the direct investment undertaken by foreign banks and securities in Macau decreased 13 percent, while outside retail and wholesale companies invested 65 percent less in 2013 and the cultural and recreational sector attracted 63 percent less financial interest.
The majority of investment came from the Cayman Islands and British Virgin Islands (70 percent of total investment), tax haven locations favoured by most foreign companies to set up operation to minimise tax obligations.
But investing in Macau is still good business. According to the report from the statistics bureau, direct investment income (the money companies make from investments) increased 36 percent to MOP78.9 billion last year. The gaming industry was, again, the sector that saw income from its investment increase most (39 percent), followed by banking (36 percent) and retail (20 percent).
In all, foreign companies have invested a combined MOP189 billion in Macau’s economy in recent years. The gaming industry is now responsible for 60 percent of the investment here (MOP114 billion), with the banking sector occupying a share of 16 percent.

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