IMF URGES MACAU OPERATORS TO MAKE BUSINESS CHANGES
The fund published a report that indicates that the Macau casino operators should look into their business models.
Macau.- The International Monetary Fund (IMF) released a report this week that says the Macau government could use the new public tender process for future gaming licences to pressure casino operators to make significant changes to their business models and promote non-gaming tourism.
The IMF report says that with all six gaming concessions expiring in 2020 and 2022, the authorities have the chance to advance their growth strategy and therefore should craft new regulations with stronger incentives for operators to develop and expand non-VIP tourism.
“To accommodate the higher number of tourists under a mass-market and non-gaming model, infrastructure plans should advance in order to ease supply-side bottlenecks. Some of these areas are expanded entertainment, convention and exhibition options, hotels and retail, including via integrated resorts and family-oriented facilities,” said the report.
Progress with diversification efforts towards mass gaming and non-gaming tourism, together with the important China gaming monopoly, are expected to deliver continued growth in the coming years, said the IMF.
Moreover, it said that an increased competition in the industry, specially from emerging gaming centers in Asia, could start diverting Mainland tourists from Macau. On the other hand, faster diversification progress and further land reclamation could boost sustainable growth by widening non-gaming tourism options.