Macau operators have agreed to invest a combined MOP100 billion ($12.5 billion) should they be awarded a new ten-year concession by the government.
According to local media reports over the weekend, Galaxy Entertainment and Sands China agreed to invest MOP20 billion each, while the remaining four have agreed to MOP15 billion.
The government is expected to award the new concessions by the end of this month, with the new contracts coming into force at the beginning of next year.
All six existing concessionaires have put in a bid, while Malaysia’s Genting Group emerged as a surprise seventh bidder. Only six licenses will be awarded.
The Macau government has put a strong focus on increasing investment in non-gaming activities in the tender process as the city seeks to diversify its economy away for its reliance on gaming.
Macau investment reasonable
Local media reports analysts as saying the required investment pledges are reasonable and indicate that there are unlikely to be negative surprises with the awards.
However, the renewal process comes at a delicate time, with the city having been virtually closed to foreign visitors since the start of the pandemic.
Macau on Monday announced an easing in quarantine requirements to five days of mandatory quarantine, followed by three days as a so-called red code holder. This in effect means that the traveller will be required to stay at home, or in a hotel, unless they are going to a mandatory testing centre.
The easing also follows China’s decision late last month to reinstate electronic issuance of individual visit schemes and group tours, which analysts have said is key to help drive visitation to the city.
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