MACAU BUSINESS By Paolo A. Azevedo By José Carlos Matias with Tony Lai and Aries Un
Status quo in new landscape
I M 18 OCTOBER 2017 20 JANUARY 2023
t was almost in the blink of an eye. On November 21, companies bidding for the casino concessions had to submit their final proposals, a final meeting between the tender committee and the bidders was held the following day, and November 26 was the D-Day. The
acau Business – From Lotte World, a major recreational complex [with the world’s largest indoor theme park, in Seoul] to an integrated resort with casino in Jeju. A different beast. A
natural evolution? Lawrence Teo – Business is the same. But building
a landmark. M. B. – The group [Lotte] has created other landmarks in different types of business. Why would this be different? L. T. – Yes, Lotte Group has already created
downtown Seoul and Lotte Super Tower. We’re trying
Jeju – the new Singapore
The incumbent operators secured the six gaming concessions up for grabs. All eyes are now on the details regarding the multi-billion dollar non-gaming investment pledges for the coming decade. Genting was left out, but will there be a back door for the Malaysian giant?
committee held a Saturday morning press conference to announce that the incumbent “Big Six” would stay in the game by securing 10-year gaming concessions to begin in January 2023. The decision put to rest speculations that ‘dark horse’ bidder Genting-linked GMM Limited could disrupt the status quo. Andre Cheong Weng Chun, chairman of the tender committee and Secretary for Administration and Justice, said that this decision was made after carrying out five rounds of negotiations with the seven bidders and analyzing their bids in accordance with the three main criteria of the tender — ensuring the stability of local employment, exploring overseas markets, and developing non-gaming offerings. A list of six provisional winners of the concessions was revealed in an executive order by the Chief Executive: MGM Grand Paradise Limited; Galaxy Casino Company Limited; Venetian Macau Limited; Melco Resorts (Macau) Limited; Wynn Resorts (Macau) Limited; and SJM Resorts,
Limited.Mr Cheong confirmed that the list was arranged in the order of the score the committee assigned for each company, meaning MGM Grand’s bid received the highest score while SJM Resorts had the lowest score among the six successful bidders. But the official declined to reveal the actual score each company had or the detailed breakdown of the committee’s
Jeju will be as big as Singapore in terms of Gross Gaming Revenue, predicts Lawrence Teo. The Chief Operations Officer and Vice President of Dream Tower, the tallest Integrated Resort under construction on the Korean destination island, explains to Macau Business why Lotte Tour decided to enter the casino business and create a landmark. All bets are on making the casino resort the crown of the tourism jewel the company has been dominating for four decades
to do the Dream Tower in Jeju. Lotte here is being just a family company; we’re a different company [Lotte Tour]. It’s not going to be [just] the tallest and the largest building in Jeju, that’s just the hardware. We say that a landmark should be the most visited destination, where tourists will go to eat, shop and maybe [visit] our observation deck. A must-visit point destination. Because of the hardware, and also the software.
M. B. – What are the main goals that you definitely
want to achieve with this Integrated Resort (IR)? L. T. – Number one EBIDTA on IR in Korea. There’s
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