Asia
Melco Ready for 20% Investment Pledge Increase: CEO
The gaming operators and the Macau government share the same goals, despite delays in diversification plan discussions, the chairman and CEO of Melco Resorts & Entertainment, Lawrence Ho, indicated. The company is also ready to tackle a 20% investment pledge increase once GGR levels top $22.45 billion, says the executive.
Under their new 10-year concessions, which commenced on January 1, the gaming companies have already pledged to spend in aggregate MOP108.7 billion ($13.5 billion) on non-gaming and exploring overseas tourist markets. The figure comprises more than 91% of their total pledged investment under the 10-year licenses.
Macau’s Chief Executive revealed in April that the six gaming operators had submitted proposals for boosting the local economy in mid-March, and that the Government wanted to adjust its policy according to the gaming operators’ proposals, with lively negotiations ongoing between the government and the local government.
“We have a lot of dialogue with the government, with a lot of different agencies. I think everyone shares the same goal of diversifying the market and bringing more international visitors, and more demographics. We are supportive and will continue to talk to the government, to make sure we are on the same page,” Ho said.
As much as MOP11.8 billion ($1.5 billion) was pledged by Melco late last year for it to secure another 10-year concession term from 2023 to 2032. About MOP10 billion ($1.2 billion) of it, or around 85%, was to be allocated to non-gaming initiatives.
Ho also underlined that despite any disagreement there have been no talks to increase the pledged investment amount as of now.
Still, Ho was adamant that even if there is a need for a 20% increase in the investment pledge, Melco would be able to absorb that increase.