MACAU BUSINESS
to The Venetian Macao: only three years to build a massive 980,000 square metres. That is, the shortest term for the largest building area.
Most expensive and cheapest If the construction deadlines for the various IRs of COTAI are very dependent upon the economic situation – internal and, above all, external – which led several concessionaires to postpone their inaugurations, even for the problems of financing their works, the final costs are more dependent upon the commencement of construction. There are obviously other factors to take into account such as the size of the project and the equipment placed but as you may realise pre or post-2010 made all the difference to the construction bottom line. Building in 2004, as did The Venetian Macao, City
of Dreams and Galaxy, cost considerably less than doing so a decade later. It can be said with some margin of confidence that IRs built in the past 10 years, even the behemoths such as The Venetian Macao and Galaxy, came in at less than MOP20 billion, while almost all of those inaugurated during the course of this decade surpassed that barrier. Two exceptions: The Parisian Macao, finished in 2016, posted a revealed cost of precisely MOP20 billion, while Studio City (2015) posted MOP18.4 billion. Costs can vary significantly: Sands COTAI Central cost MOP32 billion, Wynn Palace cost MOP32.8 billion and Lisboa Palace MOP37 billion – the latter being far and away the most expensive. A final note that the IRs built in COTAI have
generally exceeded estimates. Two examples: The Venetian Macao forecast MOP14 billion but cost some MOP4 billion more; MGM COTAI stood at MOP27 billion, six billion more than originally forecast.
By Vítor Quintã Casino firms not getting ‘bang for buck’
Macau’s gaming industry is paying top dollar to those running the casino firms but a recent study hints operators are being short- changed. And experts warn that the control held by these larger-than-life entrepreneurs does little to help improve companies’ corporate governance and transparency
M 20 MARCH 2018
acau casino operators pay their Chief Executive Officers (CEOs) some serious dough but according to a recent study they did not get maximum bang for their buck in
2016 as the gaming industry was only just exiting a two-year slump. Recently, Aethos Consulting Group released its 11th annual study on the pay of gaming CEOs, looking at 36 listed companies. This pay-for-performance model compares stock
appreciation and earnings growth over a three-year period as well as a company’s size, says Aethos MD Keith Kefgen. “It’s much tougher to steer a huge company like LVS [Las Vegas Sands] and turn it around versus some small cap company which you can easily double the size of by doing one transaction,” he explained to Macau Business. Then Aethos compares the results with the CEO’s
•SJM: the most expensive ever •MGM: the smallest • The Venetian Macao: the fastest to build on the largest area
Integrated Resort The Venetian Macao City of Dreams
Studio City Macau Wynn Palace
The Parisian Macao MGM COTAI
Lisboa Palace
Galaxy Macau (Phase I) Sands COTAI Central *Approximate values
Build Time* 3 years 3 years 3 years 4 years 4 years
4.5 years 5 years? 6 years 6 years
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