Prosperity index forecast to remain high
THE
Macau Economic Association (MEA) released a report yesterday forecasting that Macau’s economic prosperity index will remain relatively high between May and July.
In the report, the off-season for Macau’s tourism has been March and April, with a decline in inbound tourists. However, the average length of stay for overnight visitors has increased slightly. The number of hotel guests and hotel occupancy rates have remained at “overheating” and “hot” levels respectively.
The index is composed of 13 indicators, including visitor numbers and hotel occupancy, and has a maximum score of 10 points. The MEA expects the index to hold steady at 6.6 points over the next three months.
The report noted that recent measures by the central government to facilitate travel from mainland China to Macau will provide a further boost to the local economy.
The MEA particularly highlighted the addition of eight more mainland Chinese cities to the individual travel scheme as
nd especially beneficial for Macau’s economy.
With all Chinese provincial capitals now included, this is expected to drive an increase in domestic tourism.
Looking back over the past year, the MEA observed that Macau’s GDP growth and other key economic indicators have performed well. For instance, the economic prosperity index stood at a stable 6.4 points this March, a significant improvement over the “below-average” figure of 4.5 points recorded in the same month last year.
The central government has recently introduced measures to benefit Macau, including expanding the individual travel scheme to cover all Chinese provincial capital cities. This is expected to significantly boost mainland tourist numbers and provide an economic boost over the next three months, potentially lifting the economic prosperity index to a “hot” level of 6.6 points. Local enterprises, especially SMES, are advised to prepare for the anticipated increase in tourists by optimizing their services and competitiveness.
As a sign of Macau’s economic resurgence, the report also noted that the magazine Global Finance had ranked Macau as the world’s second-richest place, trailing only Luxembourg.