Macau casino operators submit 2023 investment plans

Macau’s six casino concessionaires have submitted their investment plans to the government under rules attached to their new 10-year concessions.

Macau.- Macau’s six casino concessionaires have submitted their 2023 investment plans to the government. The city’s chief executive, Ho Iat Seng, announced that the plans had been received in response to a query from legislator Wong Kit Cheng during a plenary meeting of the Legislative Assembly on Friday.

The investment plans were a requirement of last year’s public tender for casino licences, during which applicants had to outline plans for non-gaming investments to help diversify the city’s economy. Collectively, the casino operators have pledged to invest MOP118.8bn (US$14.7bn) throughout their 10-year concessions.

Each operator had to submit an “annual execution proposal” that details the proposed spending amount and execution timetable for the relevant year. While Ho did not provide specifics about the proposals, he said the government would adjust its macroeconomic plan for the city in response to the plans submitted by the casino operators.

The macroeconomic plan includes areas such as finance, technology, healthcare, meetings, incentives, conferences and exhibitions (MICE) business, and cultural and sports events. The casino industry remains a major focus of Macau’s economy, but the Covid-19 pandemic highlighted the need for greater economic diversification. The government has been encouraging the industry to invest in non-gaming areas to promote more sustainable growth and increase the city’s competitiveness.

Macau casino operators were also encouraged to build gaming zones exclusive to foreign gamblers with an exemption on a 5 per cent levy on gross gaming revenue from the areas. The incentive was offered in a bid to reduce the city’s dependence on the mainland Chinese market.

See also: Macau to face competition from future Osaka IR, analysts say