Macau Chief Executive Ho Iat-Seng said Tuesday that even though the COVID-19 pandemic had caused three straight years of significant losses to the city’s gaming concessionaires, the situation would not cause them to close down.
Speaking to reporters at a press conference on Tuesday following his 2023 Policy Address, Ho responded to questions expressing concern for the economic situation of Macau’s six concessionaires, who have now reached 11 consecutive quarters of losses, insisting that the benefits they have generated over the past 20 years have been enough to outweigh any short-term woes.
“The three years of losses will not cause them to close down so don’t listen to some reports that which are bad-mouthing Macau, because Macau’s gaming industry is very healthy,” he said.
Ho refused to be draw on details of the ongoing tender process for new gaming concessions, however, with the government currently deliberating over seven bids for a maximum of six concessions to be awarded. Asked by IAG when the results would be announced, the Chief Executive replied, “Because of the confidentiality policy, I will not disclose anything and I will not respond to your questions (about the gambling tender).
“I’m not going to respond to the gossip, it’s what you’re publishing in the media, what you’re speculating about. We, as the government, are not going to respond until the results of the gambling tender are announced.”
The seven companies bidding for a new 10-year concession include the current six concessionaires – Wynn Resorts (Macau) S.A., Venetian Macau S.A., Melco Resorts (Macau) S.A., MGM Grand Paradise S.A., Galaxy Casino S.A. and SJM Resorts S.A. – plus a seventh called GMM S.A., a subsidiary of Genting Malaysia.
TDM Portuguese Radio reported recently that the government and the tenderers had reached a preliminary agreement for the selected concessionaires to invest a combined MOP$100 billion into Macau over the next 10 years.
In addition, the Macau government expects GGR for next year to reach MOP$130 billion, the same prediction as in the past two years despite gaming revenues having failed to come close to that figure.
Asked about the reality of this figure in 2023, Ho said, “I can only say that we are confident, but there is nothing we can do if people don’t believe.”
On Macau’s strict adherence to COVID-zero, Ho replied, “Macau must insist on the COVID-zero policy, this is a certainty. Hong Kong has used a more relaxed policy, but there has been no growth in visitor arrivals. The problem of visitors is a global one, not just for Macau.”
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