Pansy Ho: MSAR should adopt own methodology for diversification

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Shun Tak Managing Director Pansy Ho says the MSAR as a whole will need to “to address our own methodology” with regard to diversifying away from gaming, following the same route as Singapore, she told The Australian.
A primary component so far expressed by both the government and the concessionaires and sub-concessionaires has been the hospitality component of each integrated resorts’ offerings in the ranking of its successful diversification attempts. However, Shun Tak, which runs the Grand Lapa, Mandarin Oriental Macau (pictured) and Grand Coloane Resort, pointed out in its annual report for 2016 that it was faced with ‘serious challenges’ in the group’s Macau hospitality operations and that ‘in 2016, the hospitality division registered a loss of HK$263 million’ (MOP270.9 million). That year, the group’s Mandarin Oriental property registered an occupancy rate of 45 per cent, according to the filing.
‘The Group’s hospitality division is dependent upon the general performance of the economies of Hong Kong, Macau, Greater China and regionally,’ notes the filing, leading Ms. Ho to broaden her sights with regard to diversification – beyond the MSAR.
“From my perspective — which is to operate some of the non-gaming components of the family businesses — we are interested in hotel management and ownership, and we are starting to look at Australia,” she told the publication.
The additional new facilities – with the opening of new integrated resorts Wynn Palace and The Parisian Macao last year pressuring the group to compete – prompted Ms. Ho to say: “In the long run, even for us in Macau, we are now having to begin to diversify; that’s why with all the concessions in Macau we are all building new facilities,” as cited by the publication. “That actually puts a greater emphasis on entertainment and attractions beyond gaming.”
How, exactly, the group plans to do that, Ms. Ho did not disclose.