The concessionaires will revitalize six old neighborhoods in Macau. These investment plans are part of the compensation promised to the Macau Government when signing the new 10-year concessions. In total, more than 100 billion patacas will be awarded to non-gaming elements.
There are still not many details about this public-private cooperation, but in this edition of PLATAFORMA we reflect on what the individual and shared responsibilities would be, as well as the care to be taken to produce the desired results. The Government will have to take care of residents and the public good, by preserving the historical features of the areas in question. On the other hand, concessionaires will have to comply with the requirements and explore the return on investment margins which, in principle, will have several limits.
The goals that the Government puts in place will have to give certain flexibility to the concessionaires to allow these non-gaming elements to achieve their primary objective: extra-gambling revenue. The balance point is the one where both sides give in so that the benefit is mutual.
However, the Government’s position may be less elastic than what is requested. In fact, these are compensations for the game’s survival for another decade. And this argument can justify a path where public-private cooperation simply becomes a subjugation of the private to the public, without opening for negotiations. Yes, there were 20 years of inertia; opening for another 10 years is part of these companies’ commitment to helping Macau enter a new cycle. But although they did not fulfill the aims of diversification, their contribution to the city’s development was enormous. It cannot be discredited or become shameful.
These 10 years will be tough for these companies, forced to slim down their ‘core business’ and branch out into areas that would not necessarily be their first choices. At the same time, Public Administration costs are cut and coffers are filled. The Government has its reasons, but it must accept reality: gaming operators will continue to be the main workers and deserve compensation that is not limited to maintaining bets. It is dishonest to preach a diversification that is only sustainable with the money from the game. And it is even more dishonest to say that Macau would live without the game for the next decade.
*Executive Director of PLATAFORMA
