Inside Asian Gaming

November 2013 | INSIDE ASIAN GAMING 27 Insights “Of course we do try to at least break even on the shows by themselves. But sometimes we feel that it’s more important to bring that show, even if you can’t break even on it by itself, because it’s more important to offer that variety to our guests and if necessary pay for it with the incremental revenue that we get.” What about gaming? Gaming is a lot more difficult to measure. We also do have our statistics for that which we measure on a daily basis, but it’s very difficult to pinpoint the effect of the concerts because sometimes we just have strong weekends, sometimes we have strong weekdays, and sometimes it’s not so strong. So can you actually connect that with the shows? Of course there is always an increase on property activity overall when we have concerts. If you bring 7,000 people on property, obviously you’re going to have more F&B, more hotel stays, more shopping, more gaming—everything increases. So even though it’s very expensive often to bring some of these shows to Macau and they may struggle to make money on a standalone basis, the indirect benefits can all add up together to make it profitable overall? We don’t aim to make huge profits on the shows that we bring in since our primary objective is to provide more diversity in terms of entertainment and choices for our guests. Of course we do try to at least break even on the shows by themselves. But sometimes we feel that it’s more important to bring that show, even if you can’t break even on it by itself, because it’s more important to offer that variety to our guests and if necessary pay for it with the incremental revenue that we get. Apart from improving the offer to guests, there’s also substantial marketing value, for both Sands China and for Macau. Yes, for Macau, not only for our properties. I believe we have been leaders in terms of non-gaming offers and especially entertainment, and we want to keep it that way. We want to put Macau on the map as a destination that has a lot to offer. Building the Cotai Arena was a huge investment and we are the only one that have it. Your last big concert featured Justin Bieber, who is clearly more attractive to a younger demographic. What was the thinking behind bringing him to Macau? It’s the same as when we bring perhaps Super Junior or Girls’ Generation or any K-pop [Korean pop] festival or show. K-pop is also very focused on younger crowds, and it all goes to serve that same purpose of having a diverse offer. The younger people in Macau and Hong Kong also need something to attend. Also, as you mentioned, the media coverage that we get out of these kinds of performances helps put Macau on the map. We’re also working with the government on that. The [Macau Government Tourist Office] is very committed to do a lot more to promote Macau as a destination, so it complements that purpose. Which shows have really impressed you? I’ve been learning a lot about these huge Asian artists. I’m very impressed by the amazing productions that we’ve had in the arena. They’re very careful about their productions, massive stages, lighting, and pyrotechnics. All these shows have been quite a surprise for me since I got here. For instance, last month we had a concert by Taiwanese artist Show Lo. He’s an amazing, very talented artist. I was very impressed. On a weekly basis we’ve got great people in here performing. Don’t forget we’re doing shows nearly every weekend. I don’t know of any other arena in the world that has shows every weekend.