Staffing costs outstrip GGR as Macau operators set to ramp up hiring

    Published in: Latest IntelligenceGrowth in labor costs at Macau’s casinos is now outstripping gross gambling revenue and the situation is likely to get worse before it gets better, analysts say.Macau’s tight labor market, with unemployment running at just 1.7 percent, has long ranked among the key concerns of gaming analysts. However, recent labor unrest, coupled with a massive upcoming round of hiring to fill new casinos, is bringing the issue to the boil.According to Morgan Stanley research, total staffing costs for the six operators rose 19 percent in the first half year on year. That compares with GGR growth of 13 percent.With revenue now down for the fourth straight month, that trend is likely to continue, the investment firm said. It sees the negative spread widening to 30 percent in the first half of next year, based on a 15 percent decline in GGR and a 17 percent gain...

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