Income from inward direct investments in gambling in Macau reached MOP37.9 billion ($4.7 billion) in 2017, a year-on-year increase of 34.5%, according to the city’s Statistics and Census Service (DSEC).
Total income from inward investments for the special administrative region was MOP 58.6 billion ($7.2 billion), with the gambling sector constituting 64.5%.
According to the DSEC, the performance of the gambling sector was a reversal from previous years, where its income had declined 6.4% in 2016 and 47.5% in 2015.
The agency also reported that total equity capital of enterprises with inward direct investment in Macau was MOP20.2 billion ($2.5 billion), of which MOP6 billion ($741.5 million) or 29.7% was from gambling. Of the capital from gambling, MOP4.1 billion ($505.7 million) or 68.2% came from foreign investors.
Total inward direct investment flows to Macau for 2017 was MOP3 billion, a 79.9% decline from 2016, “mainly due to the reduction in the amount of reinvestment resulted from a generous distribution of dividends by some gaming companies, as well as the repayment of loans from foreign direct investors and fellow companies abroad,” said the DSEC.
The gambling sector registered a negative inflow of MOP3.1 billion ($377.3 million), “due to large repayment of loans by enterprises.”
Of the inward investments to Macau in 2017, 6.1 billion ($755.5 million) came from the British Virgin Islands, a 113.5% increase from 2016, “attributable to an increase in reinvestment,” according to the agency. Flows from Mainland China and Hong Kong fell 30.5% and 66.2%, respectively, to MOP3.6 billion ($439.6 million) and MOP3.3 billion ($411.2 million).
Stock of inward investment in Macau fell 7.3% year on year, to MOP227.4 billion ($28.1 billion). Gaming stock fell 21.5% to MOP97.6 billion ($12.1 billion), of which 49.9% were of stock from the British Virgin Islands, and 19.8% from the Cayman Islands.
Outward direct investment flows, meanwhile, totaled MOP1.3 billion ($163.2 million). Stock of Macau enterprises outside of the region increased 12.4% year on year to MOP19.3 billion ($2.4 billion), where gaming stocks decreased 29.9% to MOP6.7 billion ($829.3 million).