Macau revised economic diversification plan postponed twice

Shirley Pulis Xerxen July 26, 2023

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Macau revised economic diversification plan postponed twice

According to AGB, the Macau Government has delayed the release of its revised economic diversification plan until September since casino operators’ proposals failed to satisfy the authorities’ standards. This marks a second delay, following the failure to make plans public in June.

The six gaming operators submitted plans for improving the local economy in mid-March, according to information provided by Macau’s Chief Executive in April. The Government intended to modify its policy in response to the gaming operators’ proposals.

A reason for the second delay might be down to the Government’s request for further details, including execution plans for projects submitted.

Under the new 10-year gaming licences, the authorities in Macau have demanded that gaming operators invest more in non-gaming offerings. All six concessionaires have stated that they will prioritise organising more MICE, entertainment, and sports-related activities in Macau, vowing to invest $14.8 billion over the next ten years.

As a condition of the new contracts, the gaming operators are obliged to submit an annual execution plan to the Macau authorities detailing specific projects they have mentioned respectively in their concession investment plan.

Injecting new life in old districts hangs in the balance

The six gaming operators are committed to help revitalize old districts in the city’s bid for diversification. However, according to AGB, distance is a stumbling block, as some gaming operators are encountering difficulties integrating the revitalization plan into their business as some districts are located too far away.

Macau’s casino operators will invest a combined 108 billion patacas (US$13.5 billion) to host conferences and sporting events and promote family entertainment over the next 10 years in response to the government’s call to help Asia’s gambling hub diversify its economy away from the industry.

Each of the six operators – MGM Grand Paradise, Galaxy Casino, Venetian Macau, Melco Resorts Macau, Wynn Resorts Macau and SJM Resorts – will be spending hundreds of millions of dollars on new facilities and events that are meant to draw more international traffic to the city.

In order to have their gaming licenses renewed, the companies had to pledge to invest in areas specified by the city’s bidding document, including culture, entertainment, sports, themed attractions, healthcare, and other areas that attract foreign investors.

The attempt to diversify what Macau offers to visitors could be down to several reasons. As recently reported on SiGMA news, Macau might be feeling the pressure from potential competitors in the region. The evolving gambling landscape of Asia and the Middle East is undergoing a significant transformation as some of the region’s most prominent tourist destinations venture into the realm of casino development.