Macau isn’t worried at the prospect of more competition in the region after a number of new jurisdictions coming to crash the party are reportedly threatening to blight its growth. Secretary for Economy and Finance Francis Tam Pak Yuen told Macau Business that there is still room for the area’s casino industry to expand and as such they could remain at a similar level of growth for the next few years. Tam added that Macau isn’t simply looking to be the “centre of gambling” ahead of other jurisdictions. Instead the enclave wants to become a world-class leisure and entertainment destination of which casinos are just one small part.
This echoes the sentiments of many, including Pansy Ho, who explained the need to diversify Macau’s offering so that reliance on gambling is diminished slightly. The news comes as Taiwan, Russia, South Korea and the Philippines are all expanding their operations in the same geographical area.
MGM China Holdings are confident they will get the go ahead for a project on the Cotai strip. Grant Bowie, chief executive of the firm, told Business Daily that the government is still picking over the application, which was made some years ago. The firm is in talks to secure funding for the project through a loan but Bowie stressed that hasn’t come through as yet.
Wynn Macau has seen its target price cut by analysts following its Q2 results announcement. Citigroup lowered its target from HK$18 to HK$17.50 but at the same time maintained its “neutral” rating on shares. The analysts also believe that Wynn Cotai will generate a return on investment of between 13 and 15 percent – noticeably lower than the 20 percent it predicted for both Studio City and Galaxy Macau.