The Macau Government has awarded a five-year concession to Sociedade de Turismo e Diversões de Macau (STDM) for the operation of the Macau Outer Harbour Ferry Terminal. This concession, formalized through a contract signed by the Secretary for Transport and Public Works, Raimundo do Rosário, and STDM, follows the conclusion of an open bidding process.
Key Details of the Contract
Under the terms of the contract, STDM gains control over the operating hours of the Outer Harbour Ferry Terminal and secures the right to utilize its facilities, which include waiting rooms and berths. This control is significant as it allows STDM to manage the flow of passengers and the usage of terminal resources, potentially enhancing operational efficiency and customer experience.
Financially, the contract stipulates that STDM will pay a rent equivalent to 18% of its pre-tax profits. In addition to this, the company is obligated to make a monthly payment of MOP$1.8 million (approximately US$0.2 million), which will be disbursed quarterly. This dual payment structure ensures that the Macau Government benefits from both a share of the profits and a fixed income, providing a stable revenue stream from the terminal’s operations.
STDM’s Broader Business Interests
STDM is a prominent company in Macau, owned by the Stanley Ho family. The family’s business empire extends to several other sectors, most notably through their ownership of SJM Holdings. SJM Holdings operates multiple casino-hotels in Macau, including SJM Resorts and the iconic Grand Lisboa. The integration of ferry terminal operations with their existing hospitality and gaming businesses could create synergies, attracting more visitors to their casinos and hotels through improved transport links.
Additionally, STDM owns Jet Asia, a private jet service provider. This diversification into aviation complements their transport and tourism operations, catering to high-end clientele who might also be patrons of their casinos and luxury hotels.
Financial Performance and Future Plans
SJM Holdings has reported a substantial increase in revenue in their Q1 2024 financial reports. The total net revenue for this period reached HK$6.92 billion (US$0.89 billion), marking a significant year-on-year growth. This positive financial performance reflects a strong recovery in Macau’s tourism and gaming sectors, post-pandemic.
Daisy Ho, the Managing Director of SJM Holdings and a key member of the Stanley Ho family, has announced plans to refurbish the Grand Lisboa early next year. This refurbishment is likely to enhance the hotel’s appeal, ensuring it remains a leading destination for visitors to Macau.
Industry Trends: Casinos at Sea
In related industry news, Crystal Cruises has entered into a deal with Monte-Carlo Société des Bains de Mer (SBM) to introduce casinos on two of their currently operating vessels. This agreement represents a growing trend of integrating gaming facilities into luxury travel experiences, offering passengers the allure of casino entertainment while at sea. Such innovations could influence future developments in the tourism and gaming sectors, both on land and at sea.
The Macau Government’s decision to grant STDM a five-year concession for the Outer Harbour Ferry Terminal marks a significant milestone for the company. With control over the terminal’s operations and the integration of these operations into their broader business interests, STDM is well-positioned to capitalize on the growing tourism and gaming market in Macau. The financial terms of the contract ensure a mutually beneficial arrangement for both STDM and the Macau Government, fostering continued growth and development in the region.
The broader context of industry trends, such as the introduction of casinos on cruise ships, highlights the dynamic and evolving nature of the tourism and gaming industries. Companies like STDM and Crystal Cruises are at the forefront of these changes, continually seeking new opportunities to enhance their offerings and attract a global clientele.