A 20% increase in the amount Macau’s concessionaires must invest into non-gaming initiatives and facilities regarded by SJM Resorts as “manageable and reasonable”, the company says.
The mandatory increase over and above the initial MOP$108.7 billion (US$13.5 billion) combined investment the six concessionaires agreed to in inking new 10-year gaming concessions in December 2022 was triggered when Macau-wide gross gaming revenues moved above MOP$180 billion in 2023.
In the case of SJM, that increase means the company must invest MOP$14.4 billion (US$1.8 billion) during the life of its concession, up from the initial MOP$12 billion (US$1.5 billion) it agreed to.
However, in its 2023 Annual Report published Friday, SJM said, “The amount covers both capital investment and events and is regarded by the company as manageable and reasonable, in line with the Government’s policy of broadening Macau tourism.”
In her Chairman’s Statement, SJM Chairman and Executive Director Daisy Ho noted that the company has already “made great strides in filling out the amenities of our Grand Lisboa Palace Resort with the opening of additional hotel rooms, retail shops and restaurants,” in 2023 and has since “continued to make updates in the hospitality features of our [peninsula property] Grand Lisboa.”
SJM has also been working with the government to revitalize the San Ma Lo area, which Ho said was a “multi-year effort to enhance and promote the economic and cultural vitality of an important part of the city’s historic centre.”
Separately, SJM confirmed it received notice from the government on 29 January that it has again been exempted from the Macau Complementary Tax on income generated from gaming operations for a five-year period from 1 January 2023 to 31 December 2027.
Concessionaires have traditionally been exempted from the tax, which is usually charged at a rate of 12% on profits above MOP$600,000 (US$74,400) on the worldwide income earned by Macau-registered entities, due to the significant taxes they already pay on GGR.
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