Macau’s six rival gaming operators reaffirmed yesterday their formal commitment to invest a total of 108.7 billion patacas (US$13.5 billion) in non-gaming attractions over a 10-year period starting next year.
The six companies, which signed their respective concession agreements with the government on Friday, reiterated their investment pledges during a joint conference at the Macau World Trade Centre yesterday morning. The presser was also attended by Secretary for Administration and Justice, Andre Cheong Weng Chon, who chaired the government’s gaming concession bidding committee, and Secretary for Economy and Finance Lei Wai Nong, whose portfolio includes supervision of the gaming sector.
On Friday, Chief Executive Ho Iat Seng signed the six concession agreements, which will take effect on January 1, 2023 and have a validity of 10 years.
During the concession tender earlier this year, the government had requested the bidders to focus in their proposals on priority investment in non-gaming attractions and initiatives to attract more foreign visitors to Macau.
Tourists from China (mainland, Hong Kong and Taiwan) accounted for some 90 percent of Macau’s visitor arrivals in the pre-pandemic year of 2019.
The incumbent gaming operators’ investment promises are listed in their respective concession agreements. The operators also pledged to invest a total of 10.1 billion patacas in gaming facilities during the concession period.
The six operators were represented by senior representatives during yesterday’s press conference.
MGM Grand Paradise, represented by Pansy Ho Chiu King, said that its plans to invest 15 billion patacas in non-gaming elements such as culture, health tourism and gastronomy, as well as initiatives to attract more foreign visitors to Macau, while its total investment during the concession period would amount to 16.7 billion patacas. MGM also announced the launch of an incubator hub for culture and art businesses and an entertainment complex.
Galaxy Casino, represented by Francis Lui Yiu Tung and Buddy Lam Chi Seng, said that 27.5 billion patacas of its total 10-year investment of 28.5 billion patacas would focus on attracting more foreign visitors to Macau. The company also pledged to build a high-tech theme park, art museum, 4,000-seat theatre for music performances, a concert hall for classical music and opera, and “Asia’s best venue” for variety shows.
Venetian Macau, represented by Wilfred Wong Ying Wai, reaffirmed his company’s pledge to invest 27.8 billion patacas of its promised 10-year investment of 30.2 billion patacas in non-gaming attractions, the further development of the MICE segment in particular, as well as the setting-up of an incubator centre to help develop Macau’s entrepreneurship and technological innovation, and a themed garden combining elements from gardens in Singapore and London.
Melco Resorts, represented by Lawrence Ho Yau Lung, said the company intended to invest 10 billion patacas during the concession period in non-gaming attractions, such as 90 resident shows by famous artists from Hong Kong, among them Aaron Kwok Fu-shing and Leon Lai Ming, between next year and 2025, as well as shows by artists from overseas. The company also announced the relaunch of its House of Dancing Water show in 2024 and the construction of an indoor water park.
Wynn Resorts, represented by Linda Chen Chih Ling, reaffirmed the company’s commitment to invest 13 billion patacas over the next 10 years in non-gaming facilities and initiatives to attract foreign visitors, such as by cooperating with airline companies. The company also announced plans to build a theatre for shows tailor-made for Macau, an international cuisine hub and an “interactive and immersive” entertainment centre.
SJM Resorts, represented by Daisy Ho Chiu Fung, said her company would invest 13 billion patacas during the concession period in non-gaming attractions and programmes to attract more foreign visitors to Macau. She also announced plans to renovate the company’s erstwhile Lisboa flagship hotel-casino and to redevelop Macau’s main thoroughfare, Avenida de Almeida Ribeiro, and parts of the waterfront of Macau’s Inner Harbour , including the Ponte 14 & 16 properties (“ponte” means “pier” in Portuguese).
The government’s international tender drew seven bidders - Macau’s six incumbent gaming operators and a local affiliate of Malaysian’s gaming giant Genting which failed in its bid.
Macau’s first gaming concessions were granted by its then Portuguese administration in the mid-19th century. Macau’s highly complex gaming concessions give the government much more leeway over how the gaming industry is run than conventional business licences.
Baccarat generated about 86 percent of Macau’s gross gaming revenue in the first three quarters of this year, according to official statistics.
