Sands China Encourages Macau to Expand its Economy Beyond Gaming

According to the president of Sands China, Macau needs to implement non-gaming ventures to draw in more tourists from abroad.

The president and executive director of Sands China, Wilfred Wong, has urged Macau to broaden its economy beyond gambling. He contends that initiatives other than gaming are needed to increase the number of foreign tourists to the area.

Speaking at a business event hosted by the British Chamber of Commerce in Macau, Wong said that an over reliance on gaming is detrimental to the future development of the region. For the past ten years, Macau, the only place in China where casinos are permitted, has seen a tremendous growth in its gambling business, with casino profits eventually making up more than 80% of the government’s income.

However, the Covid-19 pandemic had a severe impact on the sector, with casino revenues falling by more than 90% in 2020. For the entire year 2022, Macau’s casino GGR fell by 51.4% from 2021 to MOP42.19 billion (US$5.25 billion). The lowest annual figure since 2004 and only 14% of pre-pandemic 2019.

The government of Macau has been promoting diversification in response. Wong reminded the audience that, as part of their new 10-year gaming concessions, Macau’s casino operators must invest up to MOP120 billion, the majority of which will go toward creating non-gaming enterprises.

According to Macao News, he declared that Sands China was committed to assisting Macau in becoming a major destination for travel and recreation in line with the government’s goals. Comparing Macau’s about 40,000 hotel rooms to Singapore’s 60,000, he noted that Macau’s comparatively low hotel room supply is a problem for the expansion of MICE tourism, but he asserted that “the worst is over” for Macau.

Sands China and Star CM Holdings increase their entertainment collaboration
Sands China has said that it will broaden its collaboration with Star CM Holdings, a Chinese company that runs variety shows, in order to extend the range of high-profile entertainment events it offers. Since their partnership began in 2012, the businesses have worked on over 20 projects together.

Sands China and Star CM Holdings will produce large-scale entertainment projects with live performances, interactive experience shows, as well as broadcast and internet coverage, thanks to the expanded relationship. The performances will include the most recent annual China Music Awards and Sing! Concert in China-Macau as well as the 2023 Star Street Dancing Gala.