MGM has committed to invest MOP$16.7 billion (US$2.1 billion) during the 10-year term of its next Macau casino concession from 2023 to 2032, of which MOP$15 billion (US$1.9 billion), around 90%, is planned to be in non-gaming initiatives.
Announcing its “development directions and investment plan” for the upcoming decade on Saturday morning, the company stated it had “high confidence in Macau’s future prospects” and committed itself to “take practical actions to implement the national and SAR policies” and to “strive to develop non-gaming projects and expand foreign tourist markets.”
It also pledged to “work together with all sectors of society to promote the economic diversification of Macau, with an aim to achieve the transformation of Macau’s city image and to realize the strategic development of ‘One Centre, One Platform and One Base,’” echoing the words of President Xi Jinping on 20 December 2019 at the celebration of the 20th anniversary of the handover of Macau from Portugal to China. The expression refers to Macau as “a world center of tourism and leisure, an economic and trade cooperation platform for China and Portuguese-speaking countries and a cultural exchange and cooperation base.”
Fronting the media on behalf of MGM at a Macau press conference on Saturday were Co-Chairperson and Managing Director, Pansy Ho, and President, Strategic and CFO, Kenneth Feng. Ho noted that MGM has taken great care in calculating the investment amounts and projects.
“Investing in community and small and medium enterprises is not a purely commercial consideration, but we believe that investing in the community will bring returns to the business,” Ho said. “We have developed a very good infrastructure over the past 20 years, and in the future Macau’s gaming industry will enter a second phase, focusing on non-gaming elements.”
In a statement released to coincide with the press conference, the company stated its commitment to fostering public-private partnerships for more balanced community development and said it would “provide differentiated products and services with non-gaming tourism elements and proactively expand foreign tourist markets to further consolidate Macau’s position as a World Center of Tourism and Leisure.”
It also said it will redesign and upgrade both the MGM Macau and MGM Cotai properties to “optimize our facilities and newly expanded space in a well-targeted manner.”
Promising to diversify its “original 24/7 entertainment products”, MGM said it would “help build Macau into the city with the highest quality-price and price-performance ratio in Asia” and “establish the most diversified ‘Tourism+’ ecosystem.”
It also promised to expand international tourist markets by increasing the company’s overseas sales networks to 30 locations, doubling its sales team members, hosting events in Asia and the Middle East, and making “efforts to provide direct transportation to Macau.”
MGM also specifically said it was “dedicated to the stable employment of our existing team members”, noting that it placed a “high importance on team members’ development” and that 90% of its management team are Macau locals. It said the planned investment in non-gaming projects will “offer diverse job vacancies in arts and culture, entertainment and performing arts” next year, and said it would “utilize the MGM brand and its international network, including MGM Resorts International and Diaoyutai MGM Hospitality, to upskill team members in welcoming international tourists.” It promised to initiate a wide range of career development projects to provide knowledge and skills training to its team members.
The company then went on to detail five specific major non-gaming investments, as below.
- Build an “Arts & Culture Business Incubator” to create a “Culture + Business + Industry” ecosystem
MGM said it would follow the main theme of L’Art de Vivre, “curating entertainment events with art and enrich performing arts with culture.” It promised to collaborate with world-renowned artists, art institutions and luxury brands, establishing a “Culture + Business + Industry cultural business circle.”
The company said it would determine a “cultural business theme” on a yearly basis to guide “curatorial planning, creation, annual exhibitions, symposiums and business activities in order to promote Chinese culture from multiple dimensions.”
It committed that in 2023 it would enter a partnership with the Chinese abstract artist, Hsiao Chin, under the theme of space exploration, and that in 2024 it would showcase Miao embroidery following the theme of “the innovative representation of intangible cultural heritages.” It also said that on the 25th anniversary of the return of Macau to China, in December 2024, it planned to invite Cai Guoqiang, an internationally acclaimed contemporary artist, to create a large-scale commissioned project.
- Establish an original performing arts and entertainment district
MGM said it would establish a performing arts and entertainment district, which would showcase both Chinese and foreign performing arts, “incorporating advanced technologies.” It also said the district would “present a 24/7 portfolio of original entertainment products” featuring large-scale projects to integrate tourism, arts and culture, entertainment performances, digital technologies, history, and gastronomy.
The company has already committed to work with Chinese director Zhang Yimou and Beijing Dang Hong Qi Tian International Culture and Development Group Co, which was the VR experience provider of 2022 Winter Olympics. It also said the existing MGM Theater would undergo a technical expansion and upgrade for the launch of MGM 2049, which it described as “our flagship entertainment residency” to launch in 2024, “filling the gap in residency performance in Macau.” The show is planned to create over 100 job vacancies across the technology, arts and culture sectors.
MGM also said it would open a multimedia space “integrating art and entertainment experience with XR interactive technology” in 2023. Describing the project as “immersive art experience empowered by art, science and interactive entertainment designed for visitors of all ages”, MGM said the multimedia space “will invite audiences to enjoy boundless personalized content in a traditional Chinese culture-themed entertainment space.”
MGM also committed to creating “Macao Legacy” which it described as a themed entertaining, gastronomy tourist product with local characteristics and “original ‘Macau’ content,” which would see themed restaurants providing authentic Macanese delicacies and traditional Lingnan cuisine. The project will collaborate with local SMEs to launch retail products and house-made souvenirs.
- Create a health and wellness landmark named “Urban Oasis”
Describing Urban Oasis as “Macau’s all-new high-end landmark of health and wellness tourism,” MGM said it would embody the concept of “sustainable living art” and offer one-stop services combining wellness and medical offerings such as medical hydrotherapy, diet therapy, leisure and health management, medical tourism and health assessment.
- Develop a high-quality, high-end “distinctive exhibition area”
MGM said it would develop a brand-new multi-functional conference and exhibition area scheduled to come into operation in 2024. It said the MICE area would include “scientific innovations, diversified technologies, a flexible spatial layout, and a plethora of high-end catering services.” The company said this would create “a multi-functional ‘treasure chest’ for conferences and exhibitions and expand the quality MICE market.”
Noting that its key strategy is to attract foreign customers in a high-quality MICE market, MGM said it would “forge strategic partnerships with international tourism organizations and brands” and “introduce seasonal and special exhibitions of international brands, exchange forums for international organizations, and CEO conferences.”
- Strengthen community tourism and support SME long-term development through the revitalization of Barra district and marine tourism
MGM said it would transform the Barra district into a scenic tourism center in the community, integrating “religion, culture, and tourism” and focusing on developing the A-Ma Weekend Night Market, organizing regular evening bazaars and craft markets. It said this was expected to provide opportunities for young people to start businesses and noted the construction of the Barra LRT Station would promote “round-the-clock economic benefits.” The company said it would base its “MGM Lion Dance Championship” at Largo do Pagode da Barra, with “an extended series of international promotion plans based on the competition.”
It said it would “double its efforts” to foster the MGM Macao International Regatta as a GBA spotlight maritime sports event and proposed to develop Praia de Hac Sá in Coloane into a new maritime tourist and leisure area.
