The Macau gaming market is moving away from VIP activities and more towards a leisure-based customer profile, says Craig Billings, CEO of Wynn Resorts, in his first quarter earnings call.
Billings said that phase two of the expansion of Wynn Palace, which has been delayed through the pandemic, would be impacted also through the collapse of the Macau VIP market following scandals. As a result, Wynn was rethinking its strategy.
“We have seen during the pandemic new customers coming to Macau with different customer motivations than perhaps historically we have seen - shopping, leisure and other incentives,” he said during his earnings call.
“Part of the reason that’s the case is because Hong Kong hasn’t been accessible but that really piques our interest when we think about what the future development of Macau might be from a non-gaming perspective.
"Now, we are under no illusion that we are talking about a Las Vegas style non-gaming market - it’s just a very, very different dynamic in Macau. But the ability to adapt and change our business as the market adapts is a very interesting incremental investment opportunity.”
Wynn has two undeveloped parcels of land at Wynn Palace covering 11 acres and another 1.5 acres on the existing property. These offer opportunities for the company, although it has apparently made no decision about their use.
Previously, phase two of the development of Wynn Palace had been earmarked for "a world-class cultural destination, incorporating an array of non-gaming amenities such as event space, interactive entertainment, F&B and more hotel rooms.”
Souirce: Inside Asian Gaming
