Wynn entry sparks fireworks in Macau
(source: The Standard September 6, 2006)
Wynn entry sparks fireworks in Macau
Jonathan Cheng in Macau September 06, 2006
Today’s opening of the US$1.2 billion (HK$9.36 billion) Wynn Macau casino and hotel raises the stakes significantly in a fiercely competitive casino market that most experts predict will soon be the world’s largest.
The battle for the region’s gambling dollars pits chairman Steve Wynn in an intense three-corner fight against Sheldon Adelson, the Las Vegas stalwart behind Sands Macau, and local tycoon Stanley Ho Hung-sun, whose family- controlled Sociedade de Jogos de Macau oversees most of the rest of Macau’s 22 casinos.
But Ho repeated his warning that the new openings may be detrimental to the enclave. “We welcome the new competition. However, the current spate of casino openings has already created a lot of difficulties in staff recruitment, not just in the gaming industry.”
Ho, whose SJM now holds about 60 percent of Macau’s casino market, said that figure is now likely to shrink following the entry of Wynn Macau.
Macau’s annual gambling revenue has already surpassed that of Las Vegas, with visits from mainland tourists now topping 10 million a year.
Wynn tried to cast himself as an outsider in what he called a war of words between Ho and Adelson.
“I’m delighted to be a spectator in this shouting match,” he said, refusing to comment on Adelson’s remark last week to Ho that “if you can’t take the heat, get out of the kitchen.” Ho had complained that Americans were taking money away from the enclave.
But, when asked if he had wished to get into Ma
cau two years ago with Adelson, Wynn fired back: “We don’t build down-and-dirty quickies.
“We’re hardly ever the first, but we’re always better than the other guys,” Wynn said. He dismissed concerns his project would create a glut in the market, pointing to Las Vegas as a textbook example of development leading growth, not merely responding to it.
The complex opened at midnight with the largest fireworks show in Macau’s history.
Nevertheless, Wynn’s grand project will be facing formidable competition.
With a total of 600 hotel rooms, it is smaller than its competitors.
Wynn Macau also has the disadvantage of a two-year lag behind Adelson’s blockbuster opening in 2004.
Wynn was quick to acknowledge the challenges in Macau, but insisted his strengths lie in an eye for the upscale and a determination to create an unforgettable experience. “Not every hotel built here has to have 3,000 rooms. Hotels have been built here that are wonderful, and they’re successful,” he said. “This is not just a bunch of rooms with baccarat tables in it.”
Crucially, Wynn does have the benefit of years of experience in the business. During the 1990s, his work with the Mirage and Bellagio is credited with revitalizing Las Vegas’ flagging fortunes, while significantly upping the ante on luxury in that city.
He has promised the same approach in Macau.
In addition to luxury two-bedroom suites that will cost up to HK$21,000 a night, Wynn will grace his halls with paintings by Matisse and Renoir, not to mention a giant diamond dragon made of 80,000 pieces of crystal.
“I’ve never been a person who thinks bigger is better … I happen to think better is better, pure and simple,” he said.
But despite all the excesses, Wynn is approaching the coming fight with what he describes as a modest attitude.
“We’ve to approach this with humility. We have an awful lot to learn,” he said, speaking to reporters just before the opening.
“Will we relate visitors and customers in the same way as in America? Frankly, I don’t know. Wisdom in Asia will come with experience.”
He has taken no chances trying to court the local market, however.
Dragons, orchids and Chinese fans and screens all figure prominently in the hotel’s design.
On other matters, however, Wynn is insisting on importing his American ideas, such as open spaces. “There’s room to breathe on this site,” he said, pointing to gardens and buildings that he says don’t creep up to the street.
In addition, each building will be equipped with side doors, enabling diners to get to Wynn’s fancy restaurants without ever seeing a casino or a gaming machine – a move aimed at expanding the industry beyond just slot machines.
Wynn also defended Macau’s safety in the light of concerns about a rise in triad activity with the opening of new casinos, calling the territory “one of the safer places in the world.”
“If there’s one thing you can count on here, it’s order,” he said.
Date Posted: 05-Sep-2006
