Melco Resorts and Entertainment has committed to invest MOP$11.8 billion (US$1.5 billion) during the 10-year term of its next Macau casino concession from 2023 to 2032, of which MOP$10.0 billion (US$1.3 billion), around 85%, is planned to be in non-gaming initiatives. Fronting the media on behalf of Melco at a Macau press conference on Saturday were Chairman and Chief Executive Officer Lawrence Ho and Chief Operating Officer, Macau Resorts, David Sisk. Ho said Melco will continue to follow the government’s guidelines to ensure employment and social stability for Macau residents and support the development of Macau’s SMEs.
“The community has had a very difficult time over the past three years of the epidemic,” said Ho, “but with the relaxation of epidemic measures and the introduction of electronic visas, I believe business will return to normal if the 24-hour NAT between the mainland and Macau is abolished and 0+0 is introduced for foreign visitors.”
By “0+0” Ho was referring to no periods of quarantine or red or yellow code self-health management for visitors to Macau, a situation which has already been introduced in Hong Kong.
Ho also said that the three-year epidemic had increased the company’s debt level, but business development had to be seen in the long term. “Macau needs a hardware facility to attract foreign visitors,” he said. “It needs international visitors, but it is clear that the airport facilities are inadequate. However, the Hong Kong-Zhuhai-Macau Bridge and the expansion of the third runway at Hong Kong Airport will be of great help to Macau.”
In a statement released to coincide with the press conference, the company said its investment would “boost the momentum for the development of integrated capabilities, consolidating and enhancing competitiveness.”
Melco also stated that it “strongly supports the Macau SAR Government’s development objectives to establish the Macau SAR as a World Center of Tourism and Leisure, promote the Macau SAR’s economic diversification, and increase the Macau SAR’s international reputation and visitation.
“These objectives will promote social stability for Macau, the successful implementation of the principle of ‘One Country, Two Systems’ with Macau SAR characteristics, strengthen the vitality, creativity, and competitiveness of the Macau SAR community and the long-term sustainable development of the Macau SAR.”
It also said its plan involved market expansion by sourcing more clients from foreign countries and would include elements related to “MICE, entertainment shows, sports events, culture and art, health and wellness, thematic entertainment, gastronomy city, community tourism, maritime tourism and others.”
The company then went on to provide additional detail regarding several specific non-gaming investments, as below.
Expansion of Markets from Foreign Countries and MICE
Melco said it would allocate MOP$1.9 (US$238 million) to develop and increase foreign visitation and MICE business, pledging to “utilize Melco’s specialized sales teams across the globe to promote and directly market the Macau SAR and its rich and diverse cultural heritage and conduct strategic campaigns that position the Melco brand as the Macau SAR’s leader in entertainment.”
It said it would “leverage its MICE representative offices in Hong Kong, Singapore, Manila, and Cyprus to promote non-gaming amenities and the Macau SAR to attract international customers with a focus on Europe, the Middle East, Japan, Korea, Malaysia, Singapore, and Thailand.”
Additionally, it promised to “strive to establish relationships with international airlines that have flights into Macau and Hong Kong” and “use the Melco Resorts group’s jets to transport groups in organized visits to the Macau SAR.”
As a further MICE enhancement, Melco said it would upgrade meeting and function facilities at the Grand Hyatt at City of Dreams.
Entertainment
Melco said that it “remains committed to bringing world-class shows, art exhibitions, modern and interactive cultural venues, and fun-filled family attractions to the Macau SAR, and will continue to invest in non-gaming amenities, experiences, and their supporting systems.” The company dedicated MOP$4.2 billion (US$522 million) to entertainment projects, with a “significant portion” to be deployed in the next “two to three years.”
The company said it would start Asia’s first ever residency show with “superstars Aaron Kwok, Leon Lai, and Joey Yung performing a collective 90 shows at the Studio City Event Center between 2023 and 2025” and that “more first-class artists will join this unique line up with their own bespoke shows in the coming years.”
It also said that in 2023 it would open “the only year-round indoor waterpark and summer months outdoor waterpark” in Macau. The waterpark is planned to have an area of 9,670 square meters, F&B facilities and 16 new attractions.
In what will be welcome news to many, Melco promised to “revamp and relaunch the House of Dancing Water show in late 2024.”
Melco committed to build a new Cineplex at Macau Studio City, with six theatres, one Imax theatre and five Director’s Club theatres. It is expected to open in 2024.
Other Non-Gaming Development
Melco referenced partnerships with Chinese Media “such as Mango TV and Zhejiang Satellite TV” and said these “support the development of local projects that lead to discoveries, use and dissemination of the Macau SAR’s historical and cultural resources, promote the Macau SAR as a city of gastronomy, and promote its community and maritime tourism to a potential universe of over 1.4 billion viewers.”
Melco highlighted that such partnerships “generate great learning opportunities for Macau SAR youngsters” and “create extraordinary career opportunities to work with major mainland China entertainment companies, opening the gateway for local production crews to show their expertise and creativity to the mainland China market.”
Melco also said it expected in 2024 to open “The iRad Polyclinic, a first-class imaging and diagnostic medical check-up center offering magnetic resonance imaging (MRI), computer tomography scan (CT Scan), 2D & 3D mammography, ultrasound and X-rays.” The company described the clinic as “the first and the largest private imaging and medical checkup polyclinic in the Macau SAR, located in an integrated resort” and said it will be “a comprehensive wellness body check-up destination with full-fledged medical offerings.”
Melco said that every year from 2024 it would organize “a technology, innovation and sustainability competition open to participants in the Greater Bay Area to address and solve problem statements concerning environmental and technological issues that integrated resorts face.”
Also in 2024, Melco pledged to open a skateboard park at Studio City, “providing exciting sports activities to its youngsters and young adults” and “enabling the promotion of the Macau SAR as a sports friendly city, while attracting additional international family-oriented visitors.” The company said that from 2025 it intends to organize an annual international skateboard competition at the Studio City Event Centre, “procuring renowned international sponsors to support the event and inviting international sports stars to promote the event and the Macau SAR.”
Melco has also committed to opening the Splendors of China Museum at City of Dreams, which it described as “a 1,000 square meter space that will be an iconic, highly interactive, and modern museum showcasing China’s millennial culture and the most important chapters in China’s history, pursuing the high mission of commemorating China’s great values and victories since its inception.”
Corporate Social Responsibility
Melco said it would “continue to follow the Macau SAR Government’s guidance on labor related matters, including with respect to the employment of Macau SAR residents and ensuring Melco’s policies promote social stability and promote both vertical and horizontal mobility for Macau SAR residents through various means.” It also described “the development of local people while maintaining social stability” as “one of Melco’s top priorities.”
The company committed itself to “continue to empower local businesses and prioritize local procurement” and referred to “a range of educational and economic initiatives with local SMEs” such as its SME Academy, SME training and SME roadshows. It said it would “continue to collaborate with the Macau SAR Government to identify local SMEs and design custom initiatives to maximize goods procurement opportunities and revenue growth for SMEs with our strategic sourcing process ensuring that our suppliers in the Macau SAR have a fair, transparent and equal opportunity to do business with us.”
