Macau gaming operators are confident that visitations to the city will rebound amid the gradual easing of COVID-related travel restrictions and their efforts to attract more international travellers to the city.
The remarks were advanced by the senior executives of the six gaming operators on Saturday (today) in a joint press conference, as they presented their future 10-year blueprints. On Friday, the six incumbent operators formally signed new 10-year concessions with the Macau government, which will begin on January 1, 2023.
“Can the visitors’ arrivals to Macau reach 40 million [a year in the future]? It’s achievable and we were able to do so in 2019,” said Pansy Ho Chiu King, co-chairperson and executive director of MGM China Holdings Ltd.
The fundamental regional transportation infrastructure in the region has already been in place for Macau to attract overseas tourists, like the Hong Kong-Zhuhai-Macau Bridge, and the expansion plans of the Macau and Hong Kong airports, she explained.
Macau received a record high of over 39 million travellers in 2019, but the start of the COVID-19 pandemic in early 2020 has dampened the tourism market. Latest official figures show the number of travellers to Macau totaled only 4.94 million in the first 10 months of 2022, translating to only 14.7 per cent of the pre-pandemic volume.
Ms Ho added there are many offerings in Macau, which is “even more attractive than Las Vegas” as a tourism destination.
Addressing the challenges for Macau to attract overseas travellers, who only made up about 10 per cent of the city’s total visitor arrivals prior to the pandemic, she added that it is possible for Macau to do so. “If the United States [the Las Vegas gaming industry] could attract travellers from different parts of Asia, why Macau — an Asian destination — cannot do so?” she said.
Her brother, Lawrence Ho Yau Lung, who is chairman and chief executive of another gaming operator, Melco Resorts and Entertainment, also shared a similar perspective. He underscored that “many travellers will come back to Macau” following the easing of the city’s pandemic-related travel restrictions.
“We’re confident towards the future,” he said, despite the debt of his company rising from MOP30 billion to over MOP56 billion in the past three years during the pandemic.
Quality travellers
Meanwhile, Francis Lui Yiu Tung, deputy chairman of Galaxy Entertainment Group, said on Saturday it’s “more important” for Macau to attract “high-quality” overseas tourists, who will stay longer and spend more in the city.
He justified that the investments pledged by the gaming operators in the next decade are instrumental in drawing tourists due to their rapidly evolving demands. “If we do not strengthen our offerings, high-quality travellers will not come to Macau,” he said.
The city’s six gaming operators have agreed to commit a total of MOP108.7 billion (US$13.6 billion) in the development of non-gaming projects and exploring international feeder markets for Macau in the 2023-2032 period, alongside MOP10.1 billion in gaming investments.
Daisy Ho Chiu Fung, co-chairman and executive director of SJM Holdings Ltd, also expects the local gaming operators will see “significant improvements” in their performance in 2023 compared with the past three years over the easing of travel restrictions.
Secretary for Administration and Justice André Cheong Weng Chon, who is the head of the committee for the public tender of new gaming concessions that has just concluded, also said in the Saturday briefing that the government would work hand-in-hand with the gaming operators in exploring international customer markets.
For example, authorities would facilitate the expansion of the Macau airport and the opening of more international flight routes to Macau, as well as make customs procedures and transportation more convenient for visitors coming to the city via Hong Kong, Mr Cheong said.
In the Saturday press conference, the six gaming operators also pledged to safeguard local employment. Wilfred Wong Ying Wai, president of Sand China Ltd, said the company has helped over 1,000 employees in the gaming operation in recent times transitioning to non-gaming positions of the group.
Linda Chen, vice chairman and executive director of Wynn Macau Ltd, also said they would focus on encouraging more staff members to equip new skills in preparation for the development of non-gaming offerings in Macau.
Satellite casinos
Meanwhile, the government has confirmed only 11 satellite casinos will continue to operate starting from January 2023, representing a decrease from 18 satellite casinos by June this year.
Among the 11 satellite casinos, nine will continue to operate under the gaming licence of SJM, including: Casino Landmark, Casino Casa Real, Casino Kam Pek Paradise, Casino Fortuna, Casino Emperor Palace, Casino Ponte 16, Casino L’Arc Macau, Casino Legend Palace and Casino Grandview.
There will also be Casino Waldo under GEG’s licence and Casino Grand Dragon under Melco’s permit. Satellite casinos are third-party promoted gaming venues under the gaming licence of a local concessionaire.
The seven satellite casinos that will leave the market by the end of this year include: Casino Million Dragon, Casino Golden Dragon and Casino Royal Dragon linked to prominent businessman Chan Meng Kam’s Golden Dragon Group; Casino Eastern; Casino Diamond; Casino Taipa; and Casino Babylon at Macau Fisherman’s Wharf.
Golden Dragon Group’s Casino Grand Dragon and another satellite venue at Macau Fisherman’s Wharf, Casino Legend Palace, will remain in the market.
Addressing the issue of satellite casinos on Saturday, Daisy Ho of SJM said the company has already finished discussions with its nine satellite casinos about the arrangements for next year.
In regards to the employees of the satellite gaming venues that will cease operation by the end of this year, she added that SJM will arrange them to work in their properties, including positions in non-gaming areas after training.
