Some brothers posted a thread asking if LV sands is in trouble, well, here it is. As reported.
See the lines in red.
Chips down for Asia gaming
Posted: 19 October 2008 1509 hrs
Photos 1 of 1
A croupier waits for customers at a table in The Four Seasons Hotel casino in Macau.
SINGAPORE: The chips are down for Asia's gaming sector, with high rollers and other visitors expected to stay home as the world financial crisis takes its toll.
But analysts say the squeeze is likely to be short-term, and Asia's gaming sector should weather the financial turmoil better than Las Vegas.
"I don't think this will end the Asian gaming boom," said Bill Eadington, economics professor and director of the University of Nevada Institute for the Study of Gambling and Commercial Gaming.
However, he said the crisis "certainly is going to have a noticeable impact for a year or two."
Early signs of an industry-wide slowdown have already emerged in Macau, the Las Vegas of the East. Government figures showed average hotel occupancy rates sank 7.1 per cent to 76.7 per cent in August from a year ago.
Gaming revenues in the southern Chinese city are reported in local media to have dropped 3.4 per cent to around US$860 million year-on-year in September, the first such decline since January 2006.
Part of the drop can be attributed to recent moves by Beijing to impose restrictions on mainland Chinese visitors to Macau, analysts told AFP.
But the region, including Macau, can also expect to feel the pinch from a financial crisis which has already slowed the US economy, analysts said.
"The recent shocks to the global economic system have definitely impacted the psyche of the Asian leisure tourist," said Jonathan Galaviz, a partner with Nevada-based travel and leisure consultancy Globalysis.
"There is some evidence that spending by tourists in Macau is softening," he said, but "in the long run, Asia continues to be a bright spot for long-term tourism sector growth and Macau's casino sector should be able to capitalise upon this growth over the next decade."
While Macau government figures show visitors from China down 10.7 per cent year-on-year in August, those from Southeast Asia soared 119.2 per cent over the same period.
Sometimes during economic adversity people actually gamble more, said David Green, Macau-based gaming practice director with Pricewaterhouse Coopers.
Analysts said Asia's growing reputation as a gaming hotspot can only increase with several projects under development.
Official figures from Macau earlier this year said there were 28 casinos in the territory. Analysts have said another 15 are to open in the next four years.
Elsewhere, central Singapore has become a giant construction zone where two multi-billion-dollar "integrated resorts" featuring entertainment and convention facilities, as well as gaming, are being built.
"The current economic crisis is only going to soften the market, but the interest in visiting Macau is only going to get stronger in the future," said Andy Nazarechuk, dean of the Singaporean campus of the University of Nevada, Las Vegas.
The Singapore projects are going to be "the two most spectacular" in the region, he added.
Malaysia's Genting International, which is behind Singapore's Resorts World at Sentosa integrated resort, is sticking with its target of 15 million visitors in the first year of operation when it opens in early 2010.
"We remain confident and optimistic about the prospects of Resorts World at Sentosa," said Krist Boo, vice president for communications.
She added the company completed financing for the project in April. The US$4.2 billion development is to include Southeast Asia's first Universal Studios theme park.
Las Vegas Sands, which is building the other Singapore integrated resort, declined to comment when contacted by AFP.
Sands operates two Macau casinos including the giant Venetian, which opened last year with a gaming area the size of three football fields.
The Wall Street Journal reported early this month that Sheldon Adelson, chief executive of Las Vegas Sands, had agreed to lend his company US$475 million of his own cash, in a sign of confidence that his company would weather the global credit crunch.
The report quoted him as saying the company is pursuing with Asian banks the financing of nearly US$2 billion needed for its latest Macau project.
Analysts said the global credit squeeze may make raising funds more difficult for any project, not just gaming.
"Anyone who is lending the money will want to analyse how fast the money is coming back," said Matthew Gorman, head of corporate practice with Stephenson Harwood, an international law firm.
Canadian-based Asian Coast Development Ltd (ACDL), involved in a Vietnam beachfront project it says will include the communist country's first Las Vegas-style casinos, remains positive.
"We feel one of our biggest strengths in this regard is the fact that we are planning a multi-phased development," said chief executive David Subotic.
"Staggered construction schedules will provide us with the flexibility and agility to deal with any economic challenges proactively."
See the lines in red.
Chips down for Asia gaming
Posted: 19 October 2008 1509 hrs
Photos 1 of 1
A croupier waits for customers at a table in The Four Seasons Hotel casino in Macau.
SINGAPORE: The chips are down for Asia's gaming sector, with high rollers and other visitors expected to stay home as the world financial crisis takes its toll.
But analysts say the squeeze is likely to be short-term, and Asia's gaming sector should weather the financial turmoil better than Las Vegas.
"I don't think this will end the Asian gaming boom," said Bill Eadington, economics professor and director of the University of Nevada Institute for the Study of Gambling and Commercial Gaming.
However, he said the crisis "certainly is going to have a noticeable impact for a year or two."
Early signs of an industry-wide slowdown have already emerged in Macau, the Las Vegas of the East. Government figures showed average hotel occupancy rates sank 7.1 per cent to 76.7 per cent in August from a year ago.
Gaming revenues in the southern Chinese city are reported in local media to have dropped 3.4 per cent to around US$860 million year-on-year in September, the first such decline since January 2006.
Part of the drop can be attributed to recent moves by Beijing to impose restrictions on mainland Chinese visitors to Macau, analysts told AFP.
But the region, including Macau, can also expect to feel the pinch from a financial crisis which has already slowed the US economy, analysts said.
"The recent shocks to the global economic system have definitely impacted the psyche of the Asian leisure tourist," said Jonathan Galaviz, a partner with Nevada-based travel and leisure consultancy Globalysis.
"There is some evidence that spending by tourists in Macau is softening," he said, but "in the long run, Asia continues to be a bright spot for long-term tourism sector growth and Macau's casino sector should be able to capitalise upon this growth over the next decade."
While Macau government figures show visitors from China down 10.7 per cent year-on-year in August, those from Southeast Asia soared 119.2 per cent over the same period.
Sometimes during economic adversity people actually gamble more, said David Green, Macau-based gaming practice director with Pricewaterhouse Coopers.
Analysts said Asia's growing reputation as a gaming hotspot can only increase with several projects under development.
Official figures from Macau earlier this year said there were 28 casinos in the territory. Analysts have said another 15 are to open in the next four years.
Elsewhere, central Singapore has become a giant construction zone where two multi-billion-dollar "integrated resorts" featuring entertainment and convention facilities, as well as gaming, are being built.
"The current economic crisis is only going to soften the market, but the interest in visiting Macau is only going to get stronger in the future," said Andy Nazarechuk, dean of the Singaporean campus of the University of Nevada, Las Vegas.
The Singapore projects are going to be "the two most spectacular" in the region, he added.
Malaysia's Genting International, which is behind Singapore's Resorts World at Sentosa integrated resort, is sticking with its target of 15 million visitors in the first year of operation when it opens in early 2010.
"We remain confident and optimistic about the prospects of Resorts World at Sentosa," said Krist Boo, vice president for communications.
She added the company completed financing for the project in April. The US$4.2 billion development is to include Southeast Asia's first Universal Studios theme park.
Las Vegas Sands, which is building the other Singapore integrated resort, declined to comment when contacted by AFP.
Sands operates two Macau casinos including the giant Venetian, which opened last year with a gaming area the size of three football fields.
The Wall Street Journal reported early this month that Sheldon Adelson, chief executive of Las Vegas Sands, had agreed to lend his company US$475 million of his own cash, in a sign of confidence that his company would weather the global credit crunch.
The report quoted him as saying the company is pursuing with Asian banks the financing of nearly US$2 billion needed for its latest Macau project.
Analysts said the global credit squeeze may make raising funds more difficult for any project, not just gaming.
"Anyone who is lending the money will want to analyse how fast the money is coming back," said Matthew Gorman, head of corporate practice with Stephenson Harwood, an international law firm.
Canadian-based Asian Coast Development Ltd (ACDL), involved in a Vietnam beachfront project it says will include the communist country's first Las Vegas-style casinos, remains positive.
"We feel one of our biggest strengths in this regard is the fact that we are planning a multi-phased development," said chief executive David Subotic.
"Staggered construction schedules will provide us with the flexibility and agility to deal with any economic challenges proactively."
