Non-gaming projects promoted by Macau’s gaming operators are progressing more slowly than anticipated, primarily due to bureaucratic hurdles. Meanwhile, a local association representative indicates that a lack of clear directional planning has resulted in fragmented diversification plans.
In an interview with AGB, Nick Ng, vice-president of the Guangdong and Macao Federation of Industry and Commerce and closely involved with the operators’ revitalization plans, stated that bureaucratic procedures have delayed the execution of some plans. These delays are largely tied to regulatory processes and the involvement of heritage sites, which require additional documentation and approvals.
The revitalization of old districts is part of the broader non-gaming commitments made by gaming operators when they signed the new 10-year gaming concessions. A year ago, the Macau government officially designated six old districts for revitalization by the concessionaires.
Ng explained that some initiatives include support for cultural and performance activities in these areas, which are being gradually rolled out. He pointed out that revitalizing these districts is a complex process, as it often involves heritage sites that require restoration and government approvals. “Some of these projects can’t be fully controlled by the operators alone, as they require coordination with government agencies throughout the process,” Ng said.
Ng highlighted that several gaming operators have already launched various proposals, each with distinct characteristics. He cited the example of cultural exhibitions and weekend performances taking place at Barra District. Similarly, Sands China initiated a business project on Rua das Estalagens several months ago, alongside their other non-gaming development at Iec Long Firecracker Factory.
“When it comes to simpler events like performances or concerts, operators have more control, and the results have been quite positive,” Ng explained. However, projects tied to more intricate sites, such as Barra District or Lai Chi Vun shipyards, which involve government properties and historical buildings, have faced more significant delays due to the complex administrative procedures required for restoration and approval.
Ng noted that despite these setbacks, operators are finding ways to adapt. “In the face of these bureaucratic challenges, many operators are utilizing the available spaces for cultural and artistic activities, giving visitors new experiences while waiting for government approvals,” he said.
He pointed to a recent martial arts-themed exhibition at Barra district as an example of how operators are creatively using the time to enhance tourist engagement while awaiting further progress.
Caution among SMEs
Ng also mentioned SJM’s recent efforts, such as the transformation of Kam Pek Community Centre into Kam Pek Market, a culinary and cultural hub on San Ma Lo.
As part of the revitalization plan for Avenida de Almeida Ribeiro (San Ma Lo), the market will offer a diverse array of international casual dining, shopping, entertainment, and art and cultural experiences. SJM has recently completed the tender submission process for the market. However, local small and medium enterprises (SMEs) have been cautious in their response.
“Many businesses are still in a wait-and-see mode, as there is limited information available about these projects. In the current economic climate, they are hesitant to commit without a clear understanding of the opportunities involved,” Ng added.
Ng acknowledged that while the government has been emphasizing the importance of non-gaming development in its policy directives, a comprehensive strategy that addresses the concerns of SMEs will be crucial for the long-term success of these projects. The participation of local SMEs, he noted, is a key factor in the overall success of the non-gaming push.
Diversification efforts fall short
Analyzing the operators’ non-gaming push from another perspective, Johnson Ian, president of the Association of Synergy of Macao, who serves as a key advisor to Macau lawmaker Lam U Tou notes that Macau’s gaming operators have been under increasing pressure to diversify their offerings beyond gaming, but the results so far have been less than impressive.
Ian observes that both the government and the gaming operators seem to be struggling with the implementation of non-gaming projects. Despite large investments, the impact of these diversification efforts has been minimal. “I believe the actual results are not significant,” Ian said.
“Looking back at the ten-year contracts, the government originally required the six major gaming operators to invest MOP 118.8 billion, with over 90 percent of that dedicated to non-gaming elements. The numbers sound big, but in reality, I feel both the government and gaming operators have lacked any clear directional planning.”
Ian pointed out that, as a result, the diversification efforts have been fragmented, with the government taking a more active role but relying on gaming operators for funding and execution. He believes this approach lacks market efficiency and has led to underwhelming results.
Lack of appeal in non-gaming projects
Ian further highlighted that many of the so-called revitalization areas, such as the famous Rua da Felicidade, have failed to generate significant foot traffic or capture the attention of visitors.
“There is a clear gap between the government’s expectations and the actual results in terms of project appeal and visitor interest.”
Johnson Ian
Even when gaming operators attempt to introduce new elements, such as performances or light shows, Ian observed that the heavy involvement of the government and gaming operators has made it difficult to achieve meaningful impact.
“It is clear that government intervention runs deep, but the results have been underwhelming,” he added. According to Ian, this issue is exacerbated by the fact that gaming operators are forced to fund these initiatives without seeing substantial economic benefits.
He cited recent examples where gaming companies were tasked with hosting events like sporting competitions, but these were essentially repurposed from existing government-organized events, offering little innovation or genuine attraction for a global audience.
Impact on SMEs
A major concern raised by Ian is the impact of these diversification efforts on local small and medium-sized enterprises (SMEs). He considers that the resources and attention given to gaming operators leave little room for SMEs to thrive in the same space. “Macau has been urged not to overly rely on gaming, but the trend now seems to be an even greater reliance on gaming companies to diversify,” Ian warned.
As these large corporations continue to dominate, SMEs struggle to compete. “The problem is that when gaming operators invest in diversification projects, they often cover everything from tech innovations to health, entertainment, and dining, making it difficult for SMEs to survive,” Ian explained.
He suggested that the government should loosen its grip on certain projects, allowing SMEs to take over revitalization efforts in local neighborhoods. By doing so, SMEs could have more opportunities to grow and contribute to the local economy, rather than being crowded out by larger, more dominant players.
