Non-gambling initiatives funded by Macao’s concessionaires are being stymied by bureaucracy, poor planning and muted enthusiasm from smaller local businesses, according to experts spoken to by Asia Gaming Brief (AGB).
The six casino operators are required to invest huge sums of money in these projects under their latest 10-year concessions from the government. But Nick Ng, the vice president of the Guangdong and Macao Federation of Industry and Commerce, told AGB that regulatory processes, especially when heritage sites were involved, required additional documentation and approvals that are leading to delays.
Some of the largest non-gambling initiatives involve revitalising old areas of Macao, such as Avenida de Almeida Ribeiro (a project spearheaded by SJM Holdings) and Barra district (led by MGM China), which feature historic buildings needing careful restoration work.
“Some of these projects can’t be fully controlled by the operators alone, as they require coordination with government agencies throughout the process,” Ng told the casino news outlet.
Ng noted that the operators were finding ways to overcome setbacks, through the likes of hosting cultural and artistic activities in those districts while waiting for government approval to carry out more substantial works. He used a recent martial arts-themed exhibition at Barra district as an example.
[See more: The government wants the non-gaming sector to make up 60 percent of GDP by 2028]
Another hurdle was proving to be a lack of interest from local small and medium-sized enterprises, Ng said.
“Many businesses are still in a wait-and-see mode, as there is limited information available about these projects,” he explained. “In the current economic climate, they are hesitant to commit without a clear understanding of the opportunities involved.”
Johnson Ian, president of the Association of Synergy of Macao, told AGB that he believed “both the government and gaming operators have lacked any clear directional planning” in the implementation of non-gambling projects.
He said that several of the revitalisation schemes had resulted in “underwhelming” results in terms of foot traffic, and that most of the sporting competitions now hosted by casino operators were essentially repurposed government events offering little innovation or international appeal.
“There is a clear gap between the government’s expectations and the actual results in terms of project appeal and visitor interest,” he added.
