The Rise Of Macau
Macau is the only place in China that legalizes casino gambling. Last week, Las Vegas officials said Macau made $6.95 billion in revenue in 2006, narrowly beating Las Vegas Streep. Las Vegas Streep’s $6.69 billion was a record number, but not enough to outpace Macau.
According to the zodiac, 2007 is the “Year of the Pig.” But it is considered the “Year of the Golden Pig,” not the ordinary Year of the Pig, which comes every 12 years.
The idea that this lunar year should be the Year of the Golden Pig can be traced back to the Tang Dynasty (618-907). Emperor Gaozu of the Tang Dynasty issued a new coin in 621 called “Caiyuan Tongbao,” which inherited the style of the “Zhu” coin made during the Qin Dynasty (221-206 BC). Five years later, when Emperor Taizong ascended the throne, China entered a period of prosperity that lasted about 200 years. The Tang Dynasty also reached its peak under Emperor Taizong’s rule.
People believed that the “Caiyuan Tongbao” or “Ju” coin brought wealth and peace to the country, so the coin was named the “Golden State.” Because 627 was the Year of the Pig, which happens to be the year King Taejong ascended to the throne, people said that it was the Year of the Golden Pig because “Ju” has the same pronunciation as “Pig” in Mandarin.
Some say China is now entering another period of great strength. If you look at statistics like those on the chart, why has China developed so fast and will continue to develop.
Gamblers from Hong Kong, Taiwan and other parts of Asia can arrive in Macau in a relatively short time using a variety of transportation methods. Visitors from further afield of Asia can take advantage of the short travel time by air to Macau or Hong Kong (then travel to Macau by short hydrofoil ferry or helicopter).
In short, easy access from major population centers promotes Macau as a popular gaming destination in Asia. Macau completed the construction of an international airport in 1995, providing direct air service to many major Asian cities and countries such as Manila, Singapore, Taipei, Bangkok, Beijing, and Shanghai. Macao International Airport can accommodate large commercial airlines and, linked to numerous other major Asian destinations, regularly serves about 11 cities, including at least eight in China.
Most importantly, China opened two border crossings with Macau shortly after Sands Casino opened and allowed its citizens to cross the border. This has resulted in a wave of low-income punters filling major game venues, and if they don’t return on the same day, they may sleep in places like massage parlors and parks so as not to waste money in their hotel rooms – more money for gambling! These are welcome bonuses for casinos that tend to equalize the volatility of high rollercoaster play in VIP rooms.
Stanley Ho (SJM) has completely controlled all games in Macau for 40 years. But China’s leadership wanted Macau to expand its portfolio to luxury shopping malls, resorts, convention centers, and more. Ho didn’t seem to be able to turn the market on its own. China announced that the monopoly would end a day after the former Portuguese colony returned to Chinese rule in 1999. The government awarded additional licenses and opened the market to foreign operators who helped transform the city into one of the most successful tourist attractions in the world.
Ho still has an edge over new entrants from Las Vegas and Australia, with 18 casinos dominating more than half of the market. His market share is declining with each new casino opening in Macau. However, one of the most popular sayings in the city is that when the water rises, all boats follow the water. Although Ho’s casinos may not be as dominant as they once were, they will still make money. Moreover, Ho is still the largest landowner in Macau. So while he may have lost some gaming revenue, the rest of his land bank portfolio is increasingly valuable. Land costs are rising in Macau, so he’s worth more and more.
Grand Lisboa, a shining gold complex, looks set to be a bold bet to re-certify SJM as the No. 1 operator in Macau. This is Ho’s biggest response yet to foreign companies that have made inroads in Macau and dominated a huge chunk of the gaming market. Stanley Ho is now fighting back by joining his widely respected son Lawrence. He is learning from his enemies by adopting some of their policies and using Western expertise.*
*Recommended reading: Xunzi’s China strategy explained: Know yourself and your enemies, cheat, spy, and “win comfortably.”
Frank McFadden, formerly with Sands, is now the president of SJM. He mainly formed a foreign management team at foreign casinos. This approach is markedly different from other SJM casinos, whose management and policies are 100% Chinese and have not changed much in 40 years, including paint and carpets.
Grand Lisboa was designed by a team of international architects and interior designers. The building was opened in 2007 just before Chinese New Year’s Day, which has 240 game tables, 480 slots, and six restaurants in the shape of a giant lotus flower. The new Grand Lisboa connects Stanley Ho to the original Hotel Lisboa, which opened in 1971, by the Indian Bridge. 온라인카지노
The rest of the complex, including a 47-story tower, will open later this year with 430 hotel rooms. With the breathtaking light show of the world’s largest integrated LED screen installed outside Grand Lisboa, Ho has clearly pushed his competitors up against him.
Sands Macau opened in May 2004. They did a lot of work well. They hired a great setup team. They were mostly executives and managers with years of experience in land and ship casinos in Malaysia, Cambodia, Hong Kong and Indonesia. They were familiar with the Asian Games, Asian practices, and Asian play and knew how to find and train good Asian staff.
They applied an open interior suitable for Asian customers. They were successful from the opening day and never looked back. All construction bonds were repaid by May 2005. Most early employees received multiple promotional rewards, and managers more than doubled the value of stock options.
In 2006, the casino completed the expansion of the casino from 165,000 sq ft to 229,000 sq ft. The casino currently has about 740 table games. The Las Vegas Sands company uses these numbers to claim Sands Macao as the largest casino in the world.
Win Macao opened in September 2006 with about 212 table games, 375 slot machines and about 100,000 sq ft of casino gaming space.
In the first phase, the hotel has 600 rooms and suites, seven restaurants, and 26,000 square feet of retail space.
Walking on the casino floor is almost a surreal experience. It is a Las Vegas casino shipped to China, and there is a water show at the entrance. With Chinese punters, staff, and several types of Vegas standing around the pit asking questions. Punters are awed by the luxury. They look for the window of a five-star restaurant with award-winning chefs but crave a plate of noodles. They admire designer labels for clothing, bags, and jewelry in stores. Bulgari, Chanel, Fendi, Giorgio Armani, Prada, Christian Dior, Louis Vuitton Piaget, Rolex, Tiffany… But the Chinese wonder why the price is so absurd – never realize if it’s real, not the copies they have back home. They covet Russian hookers at the high-end nightclub “Triist.” They admire the beautiful outdoor swimming pool, but of course they don’t want to use it. Then they sit down to play, and Win plays the most powerful high-end game in Macau.
Taipa is an island located south of the Macau Peninsula. It covers an area of about 6.3 square kilometers. There are two bridges that connect Macau and Taifa. The third bridge will open to the public soon. Taifa is best known as a resort. As the population grows, it has become another good place of residence for young locals to escape the busy city.
Taipa has a new border crossing with mainland China.
Macau International Airport, Macau University, Jockey Club Gyeongju Road, Carmel Gardens and Taipa Praia, Taipa Folk Museum, Macau Stadium, Fu Taiun and Taipa Village are all located in Taipa.
Taipa Village is a very popular place for its good Macau cuisine. The narrow antique streets, with two-story buildings, pots and antique streetlights, are reminiscent of the unique Southern European landscape of the Chinese community. On weekends, it is usually crowded with tourists and locals. Many casino employees are now moving to Taifa with the expectation that they will be based on Kotai Streep. Real estate rental and purchase prices have not yet reached the same level as Macau. Recommended snack foods are roasted bird nest, egg custard, and grilled pork ribs bread. Beer is also delicious.
Coloane is one of Macau’s two main islands. It is located just south of Taipa, another major island, and east of Greater Hengqin Island.
Las Vegas Sands Corporation is making significant progress towards the development of the Venice Hung Chin International Convention Resort project in neighboring Zhuhai, but it still needs to be approved by the government.
The Cotai Strip is located 1.8 miles from the reclaimed land between Coloane and Taipa. Las Vegas Sands will own most of the hotel and casino infrastructure in Cotay Streep. The company will manage most of the casino space, and the hotel partners will manage their own hotels and amenities. Hotel partners include:
Venetian Macao, Four Seasons, Far East Consortium, Marriott, Ritz-Carlton & Tang (casino is operated by Melco PBL), Shangri-La and Traders, Sheraton and St. Regis, Hilton and Conrad, Fairmont and Raffles
The first phase of Kotai Streep will open this summer with the grand opening of the $1.8 billion Venetian Macao Suite, with construction or pre-construction activities beginning at all seven sites in Las Vegas Sands in Kotai Streep. Sheldon Adelson said most casinos on the peninsula, where Hosmoa and Grand Lisboa are located, will be “toasted” when the cotay strip opens. “When the whole Kotai strip opens, the competition will be over,” Adelson told The Associated Press last year.
I think Macau’s game size will cause the biggest problem and the biggest attraction;
personal care. To move across the border to Macau and provide food, rooms, and sanitation. Where do the employees come from? Macao is reaching 100% employment, and China has so far not allowed Chinese citizens to work as game employees, so all game employees must be hired abroad to receive training in language, culture and gaming procedures.
Director. American and Australian companies are already in operation. Britain could be next. Richard Branson and his “Virgin” brand, the U.K., expressed interest. Each government and regulator will require a squeaky clean operation in relation to trilateral meetings, money laundering, prostitution, and loan sharking.