Chips down for Asia gaming sector

“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 analyze 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.”

1|2

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email