Concessionaires to invest $15 billion in bold projects in upcoming decade

Pansy Ho

The six casino operators agreed last week to invest a total of MOP118.8 billion ($15 billion) after being granted 10-year operating licenses, with the bulk of the money pledged to non-gaming projects.

Macau has been keen to diversify away from gambling into tourism and leisure for decades, but with poor results.

Last month, the government confirmed that the six incumbents all won concession renewals, beating back a bid from a newcomer firm linked to Malaysian gaming and resorts giant World Resorts Genting.

The casino firms promised to spend 108.7 billion patacas – more than 90 percent of their total investment – on “exploring overseas customer markets and developing non-gaming projects”, the government said Friday.

Such projects would cover the convention and exhibition business, entertainment and performances, sports events, culture and art, health care, and themed amusement.

MGM: high-end exhibition area, “Urban Oasis”landmark

MGM Grand Paradise achieved the highest ranking in the tender review process, according to the government Official Gazette.

At a joint press conference over the weekend, the company, represented by executive director Pansy Ho and president, chief strategic and financial officer Kenneth Feng, pledged it would help build Macau into a very attractive destination both in terms of affordability and quality.

The executives pledged the company would double the size of its marketing team and increase its overseas sales offices to 30. It will hold events across Asia and the Middle East to entice tourists to Macau.

It will also establish a resident show, several original “leisure and entertainment” products and research local and cultural characteristics to attract a clientele of a wider age range.

Sustainable elements, conventions and exhibitions will also be part of the company’s plan, the executives added.

Galaxy: “First-and-only”high-tech amusement park

The Galaxy Entertainment Group’s executive director, Francis Lui, and senior vice president of corporate communications Buddy Lam told the same press conference that the company’s new meeting, incentive, convention and exhibition (MICE) facility, the Galaxy International Convention Centre (GICC), will soon open.

Francis Lui

The company plans to build a “hi-tech theme park” with a 61,000 square meters floor area. The executives also said the GICC will be home to a 16,000-seat multi-purpose arena.

The building of a 4,000-seat auditorium capable of hosting music galas and esteemed musicians and performers will be accelerated. Another 650-seat auditorium suitable for classical music, musicals and opera will also be opened alongside the GICC.

Daisy Ho

Furthermore, the executives have pledged to open three overseas sales offices in Singapore, Thailand and South Korea. Tour packages are also planned for six target source markets.

Having sponsored the local marathon and the FIVB World Tour for many years, investments will be made to nurture local athletes, the executives added.

Sands China: new MICE facility, themed garden

Wilfred Wong

President Wilfred Wong and executive director Dave Sun at Sands China Ltd. said the company will focus on its strength – MICE – embodied in a planned new 18,000 square meter MICE hub beside the current CotaiExpo. The expansion will help the company drive global firms to host annual congresses or summits in Macau.

The lawn on the south side of The Londoner Macao, dubbed by the company as Le Jardin, will be transformed to a 50,000-square-meter “international-tier” theme garden, which will be home to “an iconic greenhouse.”

The Cotai Arena will also be upgraded to host a wider array of events. Internationally acclaimed chefs and restaurants will be invited to Sands properties to further widen the local dining atlas.

Marketing drives will be held in the Marina Bay Sands in Singapore to attract target audiences to Macau.

Melco: medical clinic, bring back House of Dancing Water

Lawrence Ho’s Melco Resorts (Macau) Ltd. has previously announced the opening of the city’s first all-year indoor water theme park and a similar summer-only outdoor facility at the Macau Studio City Phase 2 this year.

Lawrence Ho

Also at Phase 2 will be 9,670 square meters of floor space for dining and 16 entertainment projects. The city’s first W Hotel, which will take a contemporary approach to five-star accommodation, will also be located at Phase 2 and is expected to open this year, according to Melco’s earlier announcement.

The company plans to build a multi-house cinema at Phase 2, which will house six regular cinemas, an IMAX cinema and five VIP cinemas. The silver screens are expected in 2024, said Ho and David Sisk, Melco’s chief operating officer, Macau.

Ho added 2024 will also see the opening of a medical imaging center and a skateboarding park at the Studio City.

The Studio City will reportedly roll out Asia’s first concert series comprising 90 resident shows. The House of Dancing Water show will also return with adjustments. The company will also begin collaborating mainland TV stations to promote local culture.

Wynn: new theatre, amusement center, sculpture garden

Linda Chen, executive director and Craig Jeffrey Fullalove, chief financial and administrative officer at Wynn Resorts Macau, told the press conference the company would explore the possibility of VIP and charter flights to deliver tourists to Macau.

Linda Chen

They pledged a new theater would be built to support world-class entertainment and performances. A food court with international food offerings will also be built to attract food enthusiasts.

An event center, dubbed the Wynn Gala and Activity Center, will also be established to attract MICE organizers and seekers. Entertainment and art venues will be built to cater to visitors of various tastes.

These plans had, in fact, been revealed as part of its Crystal Pavilion project some years ago.

SJM: revamp of properties, revitalize floating casino

SJM Resorts, S.A. will rely on its strong local background by revamping both the Lisboa and the Grand Lisboa Hotels, according to Daisy Ho, executive director and Benjamin Toh, chief financial and developmental operations officer.

Both hotels will be renovated by 2028.

It also planned to transform the Inner Harbour promenade to an “amphibian” dining street, which will see the revamped Palace floating casino on one of the two ends. The now docked pontoon will no longer see live gambling but dining, retail and casino culture elements. SJM’s plan includes two other thematic museums.

In terms of sports, SJM will focus on developing football, tennis and golf. World-class choreographers will be invited to stage resident shows in Macau. Over 15 restaurants are also in the SJM’s plans.

Before the same press conference, Secretary for Administration and Justice André Cheong, who is also the president of the gaming concession bidding committee, said profit and loss is a normal scenario in the business circle.

He stressed the six concessionaires had made pledges as per their abilities, outlook and financial statuses, which he sees as the representation of their confidence in the future of tourism in Macau.

Aligning with the senior official’s comments, executives from the six concessionaires assured that some of the promised projects can commence as soon as “border normalization is realized.”

Pledged investments in the coming decade

Chief Executive reminds concessionaires of new law

Chief Executive Ho Iat Seng has met with representatives from the six gambling concessionaires amid the signing contracts with the government and reminded them about the new law.

Ho first congratulated the gaming concession awardees. He also thanked them for making their best efforts in response to the new public tender process for gaming concessions, and for supporting the Government’s requirements for ensuring local employment, exploring overseas customer markets, and developing non-gaming projects.

He then reminded the concessionaires to prepare for operations from January 1, in accordance with the revised gaming laws and regulations and the new concession contracts, to ensure the lawful and healthy development of Macau’s gaming industry.

Ho added he hoped the concessionaires would truly honor their contracts and commence their investment plans accordingly. In particular, he hoped the operators could help in contributing to Macau’s overall development, and deliver on their corporate social responsibilities regarding protection of local employment and promotion of the upward mobility of local workers. AL