3 Editor and Publisher Kareem Jalal Director João Costeira Varela Business Development Manager Ricardo Carvalho Operations Manager José Abecasi s Contributors Octo Chang Photography Ike Graphic Designers João Jorge Magalhães, Karen Yiu Editorial Inside Asian Gaming is published by Must Read Publications Ltd Rua de S. Domingos, nr 16-i, Ed.“Hin Lei”7A - Macau Tel: (853) 6646 0795 For subscription enquiries, please email
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[email protected] or call Ricardo Carvalho Tel: (853) 6682 8475 www.asgam.com The US$2.3 billion 3,000-suite Venetian Macau will open its doors in the middle of 2007, forming the anchor property of the Cotai Strip along which Las Vegas Sands Corp (LVS) is spearheading the development of its trademarked“Asia’s Las Vegas” This year will see the dawn of the mega-resort in Macau.The mega- resorts in Vegas appeared following a period of consolidation among casino properties in the ‘50s, during which some opera- tors sought to develop the convention market in order to drive mid-week occupancy, marketing properties as resorts and business meeting venues, rather than places centered on casinos. Macau’s casino revenues continue booming, but the massive com- ing supply will lead to a marked decline in wins per table.Thus, while skeptics question the demand for non-gaming offerings in Macau, the casino operators may not be premature in seeking ad- ditional revenues and moving the city towards becoming a more complete Vegas-style tourism destination. The 600-roomWynn Macau opened in September 2006, proclaim- ing itself Macau’s first destination resort.“That’s a joke,” LVS Chair- man Sheldon Adelson told Inside Asian Gaming , given that Wynn Macau offers only 13 stores in its mall and 24,000 sq ft of meeting space, compared to Venetian Macau’s 350-store mall and 1.2 million sq ft of expo space. One may argue the distinction between destination resort and mega-resort, but it is clear the development of Cotai will be key to Macau earning the title of “Asia’s Las Vegas” – a title that will in coming years also be contested by Singapore, which, by many measures, is currently better placed than Macau to a become a complete Vegas-style tourism destination. Japan will likely vote on legalizing casinos this year, and could emerge as another serious contender. After all,“the idea isn’t just to build casinos but to de- velop huge entertainment complexes that include shops, restau- rants and theatres to give tourists and business people something to do, apart from seeing all of the usual historical and cultural sites of course,” said Takayuki Aoki, chief political aide to Takashi Iwai, a Liberal Democratic party MP who heads the party’s subcommittee on casino entertainment. Few argue that Singapore will be able to take Macau’s other title, as the world’s top-grossing casino destination. Japan could make a strong showing with its wealthy homegrown market of avid gamblers, but no other Asian casino destination will exert the same pull over mainland Chinese gamblers as Macau. Furthermore, the Cotai Dawning world-ranking is by city, not country, and if legalised, casinos are likely to be scattered throughout Japan, though the first is tipped for Tokyo’s Obaida waterfront district. New Breed Macau remains primarily a day-trip destination. Visitors to the city stay an average of 1.1 days, but packages for longer stays will be marketed around the new mega-resorts. The likes of LVS are bet- ting this will multiply demand for rooms exponentially, disproving doomsayers’ predictions of a massive oversupply of rooms. LVS believes Cotai will not merely convince the existing market to stay longer, but will bring a new breed of visitor to the city. Steve Wynn claims to have already done that with Wynn Macau, which, in its first full month of opening in October, boasted an 83% oc- cupancy rate – compared to less than 70% in the city as a whole – and saw brisk business at its restaurants. In contrast, the tables at the high-end restaurants in LVS’ first Macau property, Sands Macau, were closed for lack of business and replaced with gaming tables.Wynn Macau now plans to put in more dining and gaming as part of an expansion plan announced in November that will see a second tower, dubbedWynn Diamond Suites, built alongside the existing resort. Still,Wynn Macau has yet to open its theatre, and its guests are primarily interested in gambling. It will only be on Cotai that guests start coming more for the entertainment, shopping, and conventions and exhibitions. Early Dawner The 318-room GrandWaldo opened in May 2006 with a broad range of dining, entertainment and retail options, becoming the first resort on Cotai. It is the featured stop in this issue’s “Tour of the Properties.” Business at the GrandWaldo has been lacklustre to date because it sits isolated on what is still essentially an expansive construction site.When Venetian Macau opens, it will create a large degree of critical mass by itself on Cotai, but Mr Adelson knows he must shore it up by quickly unveiling a string of further properties along the strip. He is investing up to US$11 billion on Cotai to do just that. Kareem Jalal We crave your feedback. Please send your comments to
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