Grant Cham, CEO and president of Sands China, said during Chinese President Xi Jinping’s visit to Macau that ended on Friday that Macau is seeking to diversify its economy away from gaming and become a “city of sports and…entertainment.” He said that it is a city of
In an interview with Squawk Box Asia, Cham referenced a deal announced in early December between the Suns China and the North American Basketball Association to play two NBA preseason games in China.
“We are planning to bring the NBA China games back to China, but this time in Macau,” Cham told CNBC’s Emily Tan. “We don’t want to do a one-off event. We believe a multi-year partnership with pre-season games over several years will really strengthen Macau’s position.”
The games are part of Sands China’s commitment to invest $4.5 billion in the city by 2032, of which “more than 90%…will go to non-gaming investments,” Cham said. .
Six gambling operators in Macau, a special administrative region of China, have pledged to invest nearly $15 billion to reduce the country’s economy’s dependence on gambling revenue. The operating companies’ gaming licenses were renewed in 2022, albeit for 10 years instead of 20, after each pledged to invest heavily in non-gaming projects.
But for some, the transformation is not happening fast enough.
In a speech in Macau on Friday, President Xi praised the special administrative region and set out “three expectations” for the special administrative region, including a call to “keep pace with the trends of the times” while showing “greater courage in reform and innovation.” said. According to records provided by China’s State Council.
President Xi also urged the city to take steps to attract more foreign talent, a sentiment echoed by Wynn Macau non-executive chairman Alan Zeman on Thursday’s Squawk Box Asia. Ta.
Build Macau’s brand
Cham said Sands China has already completed one major project, the renovation of the 14,000-seat Venetian Arena, formerly known as Cotai Arena, in November.
“We have invested more than $200 million in the fundamental renovation and renovation of the Venetian Arena,” he said. “This facility will be a state-of-the-art facility capable of accommodating not only trade shows and conventions, but also live music concerts and increasingly large-scale sporting events.”
The Venetian Arena is scheduled to host NBA preseason games starting in 2025. The first two games between the Brooklyn Nets and Phoenix Suns are scheduled for October, NBA deputy commissioner Mark Tatum said earlier this month.
Mr Cham said these matches would enhance Macau’s status as a destination for major global events.
“Over time, this will increase Macau’s brand value,” he told CNBC.
Cham said that while Macau’s gaming revenue has recovered to about 80% of 2019 levels, tourist arrivals, which he calls “the most important health indicator for the tourism economy,” were lower than before the pandemic in August and October. He said that the level has been reached.
Friday marked the 25th anniversary of Britain’s handover of Macau to China in December 1999.
The NBA deal means the return of preseason games in China for the first time since 2019. In October of the same year, China abruptly ended an agreement to broadcast preseason games in the country following a tweet from then-general. Houston Rockets manager Daryl Morey expressed support for anti-Beijing protesters in Hong Kong.
