Macau Chief Executive, Sam Hou Fai, believes the closure of satellite casinos should not have much impact on the city’s GDP because Macau’s gaming concessionaires will shoulder their responsibilities.
The Macau government and related concessionaires announced last week that the 11 satellite casinos will close at the end of this year, although SJM Resorts is looking to acquire and continue operating Ponte 16 and L’Arc as self-owned properties.
The Chief Executive responded to the closures for the first time during a media interview at an event on Sunday. He noted that annual gaming revenue from satellite casinos was approximately MOP$10 billion, which was not sufficient to have a significant impact on Macau’s GDP.
“Macau’s gross domestic product last year was more than MOP$400 billion and satellite casinos accounted for a small proportion of that, so the impact on GDP should not be significant,” he said.
Sam Hou Fai added that “the government is addressing the issue of satellite casinos to ensure the lawful, healthy and orderly development of Macau’s gaming industry.”
Asked about the futures of displaced employees, with satellite employing around 5,600 local employees of which 4,800 are direct employees of the parent concessionaires, he explained, “The SAR government has clearly requested that gaming concessionaires properly handle their work arrangements to ensure their continued employment.” The government has, made it clear that gaming concessionaires must fulfil their responsibilities in accordance with the law and that the Labour Affairs Bureau would closely follow up on implementation.
However, Sam Hou Fai also expressed his confidence in concessionaires stated his belief that they will absorb all employees originally assigned to satellite casinos.
Likewise, the government will provide full support to impacted SMEs, including assistance in functional and transportation infrastructure, to help these businesses transition and mitigate the impact of the satellite casino closures.
