Melco Resorts Chairman and CEO Lawrence Ho believes Macau will return to its US$45 billion peak within the next five years, with the Asian gaming hub still very much his primary focus despite recent reports of Melco’s Japanese aspirations.
In a wide-ranging interview with Bloomberg this week, Mr Ho expressed his confidence in Macau’s recovery, which saw the city post 16.3% year-on-year growth in April – the ninth consecutive month of rising revenues.
“Definitely within the next five years, it will grow back to the US$45 billion gaming market,” he said. “And that’s just the gaming alone, because the non-gaming part is significant. We’re very excited.”
Mr Ho said that although Melco Resorts would push hard for a Japan gaming license should the Integrated Resorts Implementation Bill be passed later this year, Macau remained very much at the forefront of the company’s future plans.
“We’re very excited,” he said. “Macau is the best market in the world and if Japan opens up it will be the second best market in the world which is why we are so interested in it. And being a young, entrepreneurial company we think we are well suited for that.
“But in terms of Macau, we still have our last phase of City of Dreams that we’re completing next April and it’s a tower designed by the late Dame Zaha Hadid, so it’s a very iconic landmark to be put in Macau – a US$1 billion dollar hotel.
“Also as part of Studio City there is a Phase 2 that we will build out and we’re liaising with the government about what they want for years to come. We are extremely bullish about Macau for years to come.”
Asked about the reasons for Macau’s recovery, Mr Ho replied, “Ultimately the crackdown (in China) wasn’t really focused on gaming … gaming was collateral damage. The peak of that crackdown has long passed.
“The middle class and the wealthy individuals in China who didn’t do anything realize that they are in the clear and can go back to living their upscale lives and having fun again.”
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