Macau Gov would need more convincing from six (6) gaming operators through detailed execution plans; policy talks to continue with the operators and econ plan to move to September.
Original story by Viviana Chan for Asia Gaming Brief
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.
To learn more about this development and how the major Macau operators have put out their plans amounting to $13.5 billion (on non-gaming and exploring overseas tourist markets), visit https://agbrief.com/intelligence/deep-dive/26/07/2023/macau-postpones-launching-economic-diversification-plan-as-gaming-operators-proposals-disappoint/
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