The Macau government has confirmed that Morpheus, a five-star hotel at Melco Resorts & Entertainment’s City of Dreams, has been classified as a “Tourism Utility” and is therefore entitled to specific tax concessions.
The update was published in the Official Gazette on Wednesday, with Morpheus found to comply with key conditions that allow it to be classified as a tourism utility. Government conditions require that such hotels are managed by a concessionaire or another international group, and that they operate a restaurant that serves both traditional local Macanese cuisine and traditional Portuguese cuisine.
These hotels should also prioritize the employment of Macau residents and the hotel’s reception should be staffed with Chinese, Portuguese and English speakers.
Morpheus, which opened on 15 June 2018, is a 160-meter-high, 39-storey hotel with a total gross floor area of 150,000 square meters, offering 770 guest rooms, suites, sky villas and duplex villas, as well as a range of dining experiences and non-gaming entertainment facilities.
From the government’s perspective, hotels or similar establishments can be categorized as “Tourism Utility” buildings based on the location and type of property, the type and class of service, the financial viability of the construction, and the benefits to the tourism infrastructure of the local community, amongst others.
Properties classified as “Tourism Utility” are eligible for specific tax incentives, including exemptions from housing tax and business tax for a limited period of time.
