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Lawrence Ho, Chairman and CEO of Melco Resorts & Entertainment said that despite the delays in discussions on diversification plans, both the gaming operators and Macau’s government have the same goals. According to the executive, Melco Resorts & Entertainment is ready to increase its investment pledge by 20% once GGR levels reach $22,45 billion.
The gaming companies, under their 10-year concessions that began on January 1, have already committed to spending MOP108.7billion ($13.5billion) in total on non-gaming activities and exploring foreign tourist markets. This figure represents more than 91% their total investment pledged under the 10-year licences.
Macau’s Chief executive revealed in April that six gaming operators submitted proposals to boost the local economy by mid-March. The Government was adjusting its policy in accordance with the gaming operators’ suggestions, while lively negotiations were ongoing between the local government and government.
“We are in constant dialogue with different government agencies. I believe everyone has the same goal, which is to diversify the market by bringing in more international tourists and changing the demographics. Ho stated that they were supportive of the plan and would continue to speak with the government to ensure we were on the same page.
Melco pledged MOP11.8bn ($1.5bn) late last year to secure a 10-year concession from 2023-2032. Around MOP10 billion ($1.2billion) or 85% of the total was allocated to non-gaming projects.
Ho added that, despite disagreements, there had been no discussions to raise the amount of investment pledged as of yet.
Ho insisted that Melco could absorb an increase of 20% to the investment pledge.
