Small businesses located near some of Macau’s satellite casinos have told Inside Asian Gaming that they expect the impending closure of those casinos will have a negative impact on their business.
As reported by IAG, the three Macau concessionaires that operate the 11 existing satellite casinos announced Monday that they will cease satellite operations before the end of this year, although SJM will look to acquire and convert two of those – Ponte 16 and L’Arc – into self-owned casinos.
Among the casinos closing down are Landmark, Fortuna and Kam Pek Paradise which are located in the Rua de Pequim (Beijing Street) area of Macau’s Zona Nova De Aterros Do Porto. Dozens of small businesses are closely tied to these satellite casinos.
A pawnshop on Beijing Street told IAG that its business primarily relies on casino customers and it anticipates that the closure of the Landmark and Fortuna Casinos will have a significant impact on its operations.
“It depends on the situation. We will have to wait until next year to decide [whether to stay open],” the pawnshop operator said when asked about the casino closures. He will explore the possibility of relocating next year to the Cotai area.
A nearby restaurant owner added that it is difficult to estimate the real impact of the satellite casinos closures, stating, “Our main customers are employees of the satellite casinos, so if they leave the casino after it stops operating we will lose some of our customer base.”
At a press conference on Monday, the Macao SAR Government pointed out that it is trying to create new commercial districts in the community and will assist businesses that need to transform. The government will have a series of plans and arrangements in place, it explained.
However, asked about this, the pawnshop owner admitted, “It is unlikely that we will transform, especially given the current poor business environment. Investing in a new industry without careful consideration may result in failure and exit.”
The restaurant operator also cast doubt on changing tack.
“The situation will have to wait until next year to decide, depending on whether the customer base is significantly affected,” they said.
As reported by IAG, the operators of the satellites themselves appeared to be similarly caught by surprise this week with a number of listed companies revealing that they were only informed of the looming cessation of their management contracts on Monday.
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