Discretionary spending by mainland Chinese expected to climb
The number of mainland Chinese citizens earning more than $3,794 a month is reportedly set to rise by around 22% over the next decade and lead to an increase in discretionary spending with many consumer segments including casino gambling.
According to a report from GGRAsia citing a recent investigation carried out by brokerage firm Sanford C Bernstein and Company, some 4.7 million mainland Chinese residents took home that amount in 2016. However, the research purportedly declared that this moneyed population is expected to swell by some 28% over the next five years to 16.2 million before reaching as high as 35 million by the end of 2026.
Sanford C Bernstein and Company reportedly carried out its study in partnership with management consultancy firm EIU Canback by analyzing the amount of cash currently being spent on luxury goods such as alcohol, automobiles and gaming. It ultimately defined those earning over $3,794 a month as ‘high-intensity premium consumers’ and explained that such a boost in their numbers could ultimately lead to even more cash being spent inside the many casinos and shopping malls of Macau.
GGRAsia additionally cited the 15-year master plan recently released by the Macau Government Tourism Office as predicting that the aggregate amount being spent by those visiting the former Portuguese enclave on non-gaming activities is expected to reach as high as $14 billion a year by 2025.
However, the research from Sanford C Bernstein and Company reportedly moreover advised that the recent anti-corruption drive by Chinese President Xi Jinping had ‘escalated significantly in recent months’ and could have ‘implications on premium spend’ across many sectors including VIP gambling.
GGRAsia reported that the Chinese government’s stance on its current and future economic policies could become clearer following its next five-year Communist Party congress, which is due to get underway in Beijing from October 18.