Saturday, May 18, 2024
HomeIntelligenceDeep DiveMacau postpones launching economic diversification plan as gaming operators' proposals disappoint: source

Macau postpones launching economic diversification plan as gaming operators’ proposals disappoint: source

FOLLOW US

The Macau Government has postponed the launch of its adjusted economic diversification plan to September, with a source saying the delay is due to gaming operators’ proposals not meeting the authorities’ requirements. The plan, already delayed, was set to be released in June.

According to a source close to various gaming operators, the government will hold more meetings with concessionaires’ representatives in August to discuss the details of their proposals.

Macau’s Chief Executive revealed in April that the six gaming operators had submitted proposals for boosting the local economy in mid-March, and that the Government wanted to adjust its policy according to the gaming operators’ proposals.

A source told AGB that the government is not content with what they received and that the proposals underwent “big changes.” 

“The Government is not satisfied [with the operators’ proposals]. They are asking for detailed plans and also requesting execution plans of each project,” the source said. Concretely, the Government is questioning the effectiveness of these projects, as Macau needs to inject energy into the community economy. 

Under their new 10-year concessions, which commenced January 1st, the gaming companies have pledged to spend in aggregate MOP108.7 billion ($13.5 billion) on non-gaming and exploring overseas tourist markets. As a condition of the new contracts, the gaming operators have to submit to the Macau authorities an annual execution plan detailing specific projects they have mentioned respectively in their concession investment plan.

The Macau government announces its policy address every year for the following year. However, after removing all the travel restrictions and having new gaming concessions, the Government has to update its policy regarding the new circumstances. 

Macau SAR’s policy address for the fiscal year of 2023 forecasts that the city will achieve economic diversification by building Macau into a world tourism and leisure center and continuously advancing the development of major industries. These are supposedly focused on: big health, modern finance, high technologies, conventions and exhibitions, culture and sports. The ultimate goal is to see non-gaming industries contributing around 60 percent of Macau’s GDP and to build a sustainable industrial structure that fits Macau’s reality.

Old districts revitalization plans hang in doubt

The six gaming operators are going to help government to revitalize old districts in the city’s bid for diversification. However, some gaming operators are encountering difficulties integrating the revitalization plan into their business as some districts are far from casinos.

All told, the six operators are planning to renew Macau’s six old districts, including Barra (near A-Ma temple), the Inner Port area, the Old Taipa Village, and the northern part of the Macau Peninsula.

According to the plans revealed before, MGM China will focus on developing the Barra area. But as MGM’s property is far from Barra, the connection is becoming a “big problem” for making plans.

Floating Casino Macau
Macau Palace (former floating casino)

Sands China would be involved in revitalizing the Old Taipa Village area, around the famous touristic spot Rua da Cunha. 

SJM has put forward its plan to revitalize Macau’s historical area. The legacy gaming operator hopes that with the support of the government, the San Ma Lo area (Avenida de Almeida Ribeiro) will be revitalized into a new cultural landmark of Macau, with wishes to attract international customers and benefit the small and medium enterprises in the area. 

SJM wants to turn Pier 16 (Ponte 16) and the connected Pier 14 into a riverside food street. The endpoint of the project will extend the development of maritime tourism, and experts will be hired to restore and revitalize the “Macau Palace” (Floating Boat). 

Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

RELATED ARTICLES