Macau is working to diversify its economy away from gaming to become a “sports city and entertainment city,” Sands China Chairman and CEO Grant Chum said during Chinese President Xi Jinping's visit to the city that concluded on Friday.
In an interview on “Squawk Asia Fund“, Cham pointed to a deal announced in early December between Sands China and the North American National Basketball Association to play two pre-season games in China.
“We will bring NBA games back to China, but this time in Macau,” Chum told CNBC's Emily Tan. “We don't want to be a one-off event. We believe that a multi-year partnership, where we will play these pre-season matches over several years, will really strengthen Macau's profile.”
The games are part of Sands China's commitment to invest $4.5 billion in the city through 2032, of which “more than 90%… will be in non-gaming investments,” Cham said.
Collectively, Six gaming operators The city of Macau – a special administrative region in China – has pledged to invest nearly $15 billion to make its economy less dependent on gambling revenues. Operators' gaming licenses renewed in 2022 – but for 10 years instead of 20 – After each of them promised to invest heavily in non-gaming projects.
But for some, The transformation doesn't come fast enough.
In a speech in Macau on Friday, Xi praised the special administrative region before setting “three expectations” for the city, including a request to “keep pace with the trends of the times” while showing “greater courage in reform and innovation.” According to the text provided by the Chinese State Council.
Xi also urged the city to take steps to attract more foreign talent. A sentiment echoed by Alan ZemanNon-Executive Chairman of Win Macaw, Thursday in “Squawk Asia Fund“.
Brand building for Macau
Cham said Sands China has already completed one major project – the renovation of the 14,000-capacity Venice Square, formerly known as Cotai Square, in November.
“We have invested more than $200 million in the core development and renovation of the Venice Stadium,” he said. “This will be a state-of-the-art facility, not only for exhibitions and conferences, but also for live concerts as well as increasingly major sporting events.”
Venetian Arena will host pre-season games in the NBA starting in 2025. NBA Deputy Commissioner Mark Tatum said that the first two games between the Brooklyn Nets and Phoenix Suns will be held in October. Earlier this month.
Cham said these Games will enhance Macau's position as a destination for major global events.
“We expect over time this will build the brand value of Macau,” he told CNBC.
Macau's gaming revenues have recovered to about 80% of 2019 levels, while tourist arrivals – which he described as “the most important health indicator for the tourism economy” – reached pre-pandemic levels in August and October, Chum said.
Friday marks the 25th anniversary of Britain's handover of Macau to China in December 1999.
The NBA deal also marks the return of pre-season games to China for the first time since 2019. In October of that year, China announced It suddenly ended an arrangement to broadcast pre-season matches in the country Through a tweet made by the general manager of the Houston Rockets at the time, Daryl Morey, he said: He expressed his support for anti-Beijing protesters in Hong Kong.
