This page contains a Flash digital edition of a book.
MACAU BUSINESS


fixed, this town has a great opportunity to grow the multi-stay market. At the end of this year, the gaming market, from a gross gaming revenue stand point, will probably reach US$22 billion, and that is excluding all


the non-gaming stuff. Imagine when the non-gaming comes online. Forget about the 50:50 in Las Vegas. I would


estimate the non-gaming results [in Macau] are probably less than 10 percent right now, but it is already a US$2 billion industry. Now imagine if it grows to 20 percent, 30 percent. We are talking about a potential of US$6 to 7 billion. Hopefully the government will also appreciate the amount of capital and effort we are putting in.


“We deserve more land” By ‘appreciate’, do you mean the government should


invest more in public infrastructure? Yes. Anyway, City of Dreams is 98 percent finished.


We are firm believers in Macau and we are just behind Sands China, as the second largest investor here. If you think about it, we have probably put US$3 billion into City of Dreams, US$500 million at Altira, and we bought the license for US$900 million. We certainly hope to have the opportunity, in due course, subject to the government’s pace, to further develop in Macau. We hear a lot from our competitors and their


future plans. What they want to do or what they want to steal from one another. We certainly want to be considered as well, given that we have already built a showcase.


You are no longer interested in a piece of land on the Macau peninsula? Is Cotai definitely the place to stay?


I have been a firm believer in Cotai from day one.


Cotai is the way of the future. Also, on the Macau peninsula side, there are no decent sites and the market is already so competitive. You cannot put up a hotel on a 30,000 square feet plot, it is not competitive. Why would people want to go to a tiny little hotel and casino nowadays?


I am hoping that Galaxy Macau’s opening will


further drive the centre of gravity to Cotai. That way, hopefully, visitation and revenue coming from Cotai can exceed 50 percent in due course.


So, you are interested in another piece of land in Cotai. Where exactly? In the whole Cotai area. There is obviously the


Cotai Strip here but when Wynn and MGM properties open up there is going to be another exciting strip further down in Cotai. Do not forget that our license is still attached to the casino in the Macao Studio City project.


Eyes on Macao Studio City If, by a miracle, the conflicts between the Macao Studio


City promoters were solved, would you still consider letting them manage a casino there under your license?


Yes, definitely. I think the issue right now is


unfortunately out of our control, because it is between the two shareholders [New Cotai and East Asia Satellite Television] of the Macau Studio City joint venture. We have consistently passed the message to them and also to the government that we are very interested to operate on that site, using any model. We are open-minded.


As with other undeveloped parcels of land in Macau, the


government has threatened to take back the Macao Studio City land if there is no progress. As a businessman, do you agree that the government has that right, when no development takes place by the agreed deadlines?


I strongly, strongly support that. We paid for our


land, even the City of Dreams land we bought from my father. Once you make a commitment, you should build on it.


Also, it is not like these people have bought their land and are sitting on it. They did not pay for it. If we want to develop Macau, the key is really creating employment opportunities, whether it is on the construction sites or in the services sector. If you are not building on it, you are not really creating any new employment opportunities.


Junket games


Let’s talk about hard cash and gaming. Wynn Macau, for the first time ever, and it is probably a wakeup call, is facing challenges with super junkets like Dawei (David) and Neptune transferring part of their operations to other casinos. Initially, it was said it was because of City of Dreams.


No, no. I think people here took quite a bit of offense when it was said that MGM and Melco Crown were starting a price war and causing a disruption. For God’s sake, we were perfectly happy with our


DECEMBER 2010 21


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54