Las Vegas Sands (LVS) considers Macau its biggest upside potential, however, without the relaunch of the Individual Visit Scheme (IVS), there is not much hope for the casino sector, said Rob Goldstein, president and chief operating officer of LVS.
Of the three jurisdictions in which the American company operates, the executive expressed the most confidence in Macau’s market.
“Singapore is somewhere in the middle. Vegas is in the deep part of the pool. But Macau has such potential, we believe,” said Goldstein during the LVS second quarter 2020 earnings call held yesterday.
However, the gaming operator also fully relies on the resurrection of the IVS.
Although the 14-day quarantine measure has been lifted for visitors from Guangdong province, there are not enough of these visitors to boost the city’s economy. Goldstein considers the IVS as critical. While Guangdong opening back up is helpful, other provinces will need to come back as well.
The statements were made as the company reported an attributable net loss of $820 million (6.55 billion patacas) in the second quarter.
The executive also mentioned some sources say that the IVS, when it relaunches, will be limited to Guangdong and that movement from other provinces will be introduced gradually throughout the fall.
“We don’t know when, but that’s critical. Of course, then finally, beyond Guangdong, we need to see the other provinces open as well. It’s not really that impactful financially – or for the income of Macau, the quarantine disappearing without a resurrection of the IVS,” said Goldstein.
For the operator, the goal for now is to go beyond Guangdong since Macau has so many provinces that contribute to its income. “So we’re very excited about the potential when it does happen. We’re still strong believers in the pent-up demand theory,” Goldstein remarked.
“The Macau government knows that the IVS scheme is important and that we need that. So we’re also hopeful that that will take place sooner rather than later. There’s no guarantee, but it’s our hope.”
Meanwhile, the executive reiterated that LVS is committed to its long-term investment in Macau, pledging to grab any opportunity to invest “billions of additional investment dollars and extend our contributions to Macau’s diversification.”
“We remain unwavering in our commitment to long-term investment in Macau. The scale of our existing and ongoing investments enables us to play our part in supporting the local economy of Macau today, including our support of local employment, as well as our support for small and medium-size businesses.”
He also said that he remains steadfast in his belief that Macau has the potential to become “one of the greatest business and leisure tourism destinations in the world and the MICE capital of Asia.”
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