10
From The Publisher’s Desk
Unfounded complaints
e don’t understand the reason why Las Vegas Sands’ President and Chief
W
Operating Officer William Weidner is unhappy with the Macau Government,
to the point where he blames it for the unsuccessful construction of lots 3, 5
and 6 on the Cotai Strip.
We can only think that he expected the taxpayer to stump up the cash for the projects.
Dear friends, let’s be clear, the local government has already done more than its fair share
to help Las Vegas Sands Corporation.
The company saved a ton of money on the price of the land alone and, unlike hundreds
of small businesses who have to follow strict procedures, hasn’t the government allowed
LVS foreign labour import quotas that others could only dream of?
What about the restaurants that have been forced to close because they couldn’t get
quotas they needed due to a strategy devised by the ever perspicacious director of the Labour
Affairs Bureau. What can we say about the request to have the fractions sold separately,
in order to allow LVS to sell retail space or set up their own version of a time sharing
operation - or whatever they want to call it - in the Four Seasons apartments?
I don’t have to remind you that, in the beginning, LVS had no intention to own all the
buildings on their lots. They weren’t supposed to just be managed by the hotels, but owned
by them.
Some analysts considered all along that there would be difficulties in financing this
decision. I find that theory to be totally nonsensical, no matter how expensive a hotel might
have been.
We’re talking about international hotel chains with international reputations, who are able
to set up in any part of the world. Are we to entertain the possibility that they were facing
financial difficulties at a time when the whole planet viewed Macau as the most attractive city
in the universe?
On the contrary, I believe that LVS entered head first in a spiral of optimism. Everything
was going just swell and cheap opportunities were everywhere. The temptation of absolute
domination proved too strong when LVS had all its fingers in the honey pot.
Regrettably, the U.S. then exported the international financial crisis, putting the squeeze
on investment and shattering investor trust. Added to this, Beijing’s visa restrictions came
along, with a likely connection to the mud that flowed from the newspapers headlines when
lawsuits were brought against the company.
I have said it in the past and I will say it again, LVS must learn how to be a friendlier
company. Many of its management people - especially those who have been in Macau for
less time - clearly need to adapt to a reality that is foreign to them.
The only criticism that can be levelled against the government is that it over fed foreign
investor expectations without guaranteeing, clearly and firmly, that degrees of compromise
which would be expected.
december 2008
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