Ahead of Chinese President Xi Jinping’s visit to Macau last Friday, Sands China CEO and President Zhan Jun said Macau is diversifying its economy and transforming from a gaming industry into a “city of sports…city of entertainment.”
In an interview with Squawk Box Asia, Chum cited an agreement announced in early December between Sands China and the National Basketball Association to play two NBA preseason games in China.
“We’re bringing NBA China games back to China, but this time in Macau,” Chum told CNBC’s Emily Tan. “We don’t want to just host a one-off event. We believe that a multi-year partnership where we will host these pre-season events over several years will really solidify Macau’s position.”
Chum said the events are part of Sands China’s commitment to invest $4.5 billion in the city by 2032, of which “more than 90% … will be for non-gaming investments.”
Overall, Macau Six gaming operators Commitment to invest nearly US$15 billion to reduce Macau’s economy’s dependence on gaming revenue. The operators’ gaming licenses will be renewed in 2022 – albeit for 10 years rather than 20 – after each committed to investing heavily in non-gaming projects.
But for some people, Transformation is not happening fast enough.
In a speech in Macau on Friday, Xi Jinping praised the special administrative region and then set out “three expectations” for Macau, including asking to “keep up with the trend of the times” while showing “greater courage in reform and innovation,” according to China’s State Council written records.
Xi Jinping has also urged Macau to take steps to attract more foreign talent, a sentiment echoed by Wynn Macau non-executive chairman Jimmy Sheng on “Squawk Box Asia” on Thursday.
Building a Macau brand
Chum said Sands China has completed a major project, the renovation of the 14,000-seat Venetian Arena, formerly known as the Cotai Arena, in November.
“We have invested more than $200 million in a fundamental upgrade and transformation of the Venetian Coliseum,” he said. “The facility will be state-of-the-art and suitable not only for exhibitions and conferences, but also live concerts and increasingly important sporting events.”
The Venetian Arena will host NBA preseason games starting in 2025. earlier this month.
Mr Tan said the competitions would enhance Macau’s status as a venue for major global events.
“We expect that over time this will build Macau’s brand equity,” he told CNBC.
Chum said Macau’s gaming revenue has returned to around 80% of 2019 levels, while visitor numbers – which he called “the most important health indicator for the tourism economy” – reached pre-pandemic levels in August and October.
Friday marks the 25th anniversary since Britain handed Macau back to China in December 1999.
This NBA agreement also marks the return of preseason games to China for the first time since 2019. · Morey expressed support for anti-Beijing protesters in Hong Kong.
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