Macau Non-Gaming Plans Will Take Time To Materialize

Must read

[ad_1]

Posted on: March 24, 2023, 05:33h. 

Last updated on: March 24, 2023, 05:33h.

A centerpiece of Macau’s recently approved gaming laws and the 10-year concessions granted to casino operators there are plans to reduce the special administrative region’s (SAR) economic dependence on gaming. It appears those efforts will take some time to bear fruit.

Macau casinos
Casinos on the Cotai Strip in Macau. Non-gaming efforts there are expected to take time to develop.(Image: Bloomberg)

In a report out earlier today in which it affirms the SAR’s credit grade at “AA,” Fitch Ratings that while Macau’s economy is tipped to rebound sharply this year, that resurgence will be fostered by the gaming industry with limited contributions from other sources.

We expect the diversification into non-gaming industries to remain slow. Human capital constraints and skill gaps pose a key challenge for Macao to substantially reduce its high dependence on the gaming industry,” noted the ratings agency. “The authorities will seek to further leverage infrastructure and financial integration with the Greater Bay Area and closer collaboration with mainland partners.”

It’s estimated that over the next decade, Macau concessionaires will be required to spend approximately $15 billion combined on non-gaming projects. The SAR’s six license holders are Galaxy Entertainment, Melco Resorts & Entertainment, MGM China, Sands China, SJM Holdings, and Wynn Macau.

Non-Gaming Investments Essential to Macau Long-Term Growth

While Macau is in the midst of an intense gaming recovery following nearly three years of harsh coronavirus restrictions, authorities there view efforts such as nongaming amenities and luring visitors to the casino hub from Asia-Pacific nations beyond China.

It’s expected that over the coming decade, the bulk of the aforementioned spending will come by way of Sands China and Galaxy Entertainment, which are the two largest operators on the peninsula. Analysts say Sands China — a unit of Las Vegas Sands — has a lengthy record of directing capital to non-gaming projects.

Enhancing offerings such as cultural exhibits, family-friendly fare and meetings, incentives, convention and exhibition (MICE) inventory, are seen as essential to Macau’s long-term plans to ward off competition from other Asia-Pacific gaming markets, such as Singapore and potentially Japan down the road. For now, however, casino-gaming will be the primary piston in Macau’s economic engine.

“Macao is well placed to capture strong pent-up demand from mainland tourists, given its status as the sole legal gaming tourism destination across Greater China and its geographic proximity to the mainland,” added Fitch. “A faster-than-expected revival of visitors poses an upside risk to the recovery outlook.”

Current Lay of the Macau Land

To start 2023, mass and premium mass bettors are fueling the gross gaming revenue (GGR) resurgence in Macau and operators such as MGM China, Sands China and Wynn Macau are adding market share.

Looking at the SAR’s broader economic outlook, factors such as robust fiscal reserves and enviable external positioning could be supportive as 2023 moves forward.

“Under our projections, Macao will maintain its large net external creditor position, at 262% of GDP in 2023, a significant strength compared with the ‘AA’ median of 18.9%. We expect the territory’s sovereign net foreign assets to remain well above the peer median at roughly 297% of GDP,” concluded Fitch.

[ad_2]

Source link

More articles

- Advertisement -spot_img

Latest article

rahasia sukses bermain pola princestangan dewa stephen chow memecahkan scetter hitamkakek tua yang baik hati pemberi keberuntunganslot jitu pragmatic playtrik scatter buah segar bonanza hokitrik curang main slot mahjong wayslapar scatter hitam di mahjong waysx500 bertubi tubi turun di slot princess dewata88di jamin jackpot pola gacor jeyus pengendali petirpetir halilintar menyambar kakek sampai menurunkan x1000kakek tua yang baik hati pemberi keberuntungangame penuh kemenangan slot lucky neko banjir wild emasledakan maxwin slot sweet bonanza auto pecah perkalian tinggisistem slot online terbukti gacorcara terbaik memanfaatkan rtp slot onlinelive pola slot terbaru gates of olympusrahasia jitu slot gacormenggunakan arwah masa lalu untuk membantu anda maxwin mahjong waysmenang 35juta pada scatter hitam slot mahjong waysputran spin gila slot mahjong ways 2 langsung pecah scatter sensasionalrahasia bigwin slot starlight princess langsung jadi sultan kayasistem kemenangan maxwin dengan slot olympus 1000 jaminan menang 500 jutasitus gama69 situs terbaru anti boncospola gacor baruy slot fortune tiger gampang pecah wild besargame slot gacor terbaik terpercaya lengkap dengan trik maxwin cara memperkaya diri dengan bermain slot starlight princessbocoran admin yami slot terbaru mudah maxwinadmin jarwo slot gacortrik jitu wd cepat kilatslot super mahjong ways dengan depo minimal 20k gampang maxwinrahasia para pemain bisa menang berkali kali pada slot starlight princess x1000slot anti rungkad bocoran terbarucara jitu bermain slot mudah jackpotrahasia pola slot sweet bonanzasensasi link gacor mudah jp mahjong ways2game slot online terbaruPputaran slot mahjong ways turunkan scatter tanpa bataspola garis 3 scatter hitam mahjong waysmitos dan fakta dari scatter hitam slot mahjong waysgame slot gacor terbaik terpercaya lengkap dengan trik maxwin olympus slotputaran slot mahjong ways turunkan scatter tanpa batasmudah banget maxwin main slot online gates of olympusslot gacor mahjong ways 2 kemanangan maksimal 100 jutatips mendapatkan perkalian jitu slot mahjong wayskemenangan terbesar dari slot jitu super mahjong wayssitus slot anti boncos terbaik di indonesiaslot hoki pembawa berkah slot mahjong ways 2 langsung hoki cair 20 jutapola jitu gampang menang emperor caishenpanduan lengkap meraih maxwin di slot gates of olympus x1000prediksi game slot online terbaruslot super mahjong ways gampang sensasional jackpot terbesartips menang besar dengan pola admin pusat slot gacorlangkah langkah mendapatkan kemenangan besar di slot mahjong wayscara mudah main slot online mahjong ways banjir scatter hitampola populer turunkan slot scatter hitam mahjong secara konsistenteknik jitu modal bet receh slot mahjong ways gampang raih slot scatter hitamjam gacor pasti jackpot besar langsung dari admin jarwo jam jatuh slot scatter hitam aslifitur akhir bulan mei dapatkan hadiah langsung jika berhasil dapatkan scatter hitam langka