Security guards stand outside the Studio City yesterday
Studio City is the new Hollywood-inspired integrated resort in Macau, aiming to redefine the region as an international tourism destination. The Melco Crown Entertainment Ltd. property that had its grand-opening yesterday is more than just a USD3.2 billion casino resort.
The Batman ride and the figure-
eight-shaped 130-meter-high Ferris wheel, named the Golden Reel, are just two examples of what’s on offer at this entertainment-inspired new destination resort.
Entertainment and adventure are, in fact, key words of this project that also offers a 3,700 square meter entertainment center and fun zones from world renowned Warner Bros, DC Comics, Hanna-Barbera Productions and Looney Tunes entertainment.
To complement all of this, a permanent magic show at the “House of Magic”, an Ibiza-style nightclub, and, of course, the Studio City Event Center that will host live concerts, theatrical performances and sports events.
The Hollywood-themed venue is among the USD28 billion of investments the local gaming houses are expected to make in the next three years.
As for the casino, it features, as announced, 250 gaming tables, while the hotel provides 1,600 hotel rooms and suites divided into two towers, the “Star Tower” and the “Celebrity Tower”, completing Studio City’s jump into the new era of integrated resorts targeting families and tourists.
At a press conference held yesterday morning, the co-chairmen Lawrence Ho and James Packer explained the project and its aims, highlighting the fact that it is built with a long term perspective. “We always built thinking in the long term,” said Mr Packer.
Answering to journalists’ questions, Mr Ho stressed that he made sure that this project is “no imposition” but instead a business decision, noting the opportunity to have land in Cotai that has connectivity advantages, being just next to the “new gate of Macau”, the Lotus Bridge immigration point, that forms a direct connection with mainland China through Hengqin island, and also a future station-point for the Macau Light Rapid Transit (LRT). Among other transportation advantages, Lawrence Ho also mentioned the new Pac On Ferry Terminal, which he expects will commence operations during the coming year facilitating, in conjunction with the future bridge, Macau – Hong Kong – Zhuhai with a variety of access methods.
During the presentation, Mr Ho also acknowledged that Studio City will target the mass-market, stating that “Macau’s future will be driven by the Chinese middle class”. According to the CEO of Melco, the company is expecting a 20 percent return on its investment in Studio City.
At 4 p.m., the main doors leading into Studio City opened and crowds of visitors who were waiting outside poured through. Among them was Shanghai native Xu Jing, who was there with her family, and said her husband planned to visit the casino while she and her two-year-old son were more interested in checking out the Batman ride and magic show.
The stakes are high for Melco. The casino operator has yet to win authorization from the Macau government for all of the 400 gaming tables it needs at Studio City by next October in order to meet the conditions of USD1.4 billion of loans, according to Standard & Poor’s Ratings. The company is asking banks to waive financial conditions for a year on the loan, people with knowledge of the matter revealed on Friday.
An adult Studio City ticket includes the 15-minute Batman ride, a ticket for the Ferris wheel, as well as entry to a magic show and costs 650 patacas, or USD81. Disneyland in Los Angeles charges $99 for an all-day ticket for anyone over 10. While not exactly cheap, it’s affordable for mainland China’s mass traveler market, said Richard Huang, who tracks casino stocks for Nomura Holdings.
Even with China’s recent slowdown, Macau operators are counting on consumer spending, which has outpaced economic growth, to spur demand for entertainment and leisure, especially with family holidays.
Chinese consumers are more willing to spend extra on accommodation when they are traveling with children, a survey by Mintel Group Ltd. showed. They also look for Mandarin-speaking tour guides, public information in a familiar language, and proximity to home because of limited holiday leave.
Macau “meets most demands of Chinese tourists,” said Linda Li, a Mintel travel analyst, who says the city will do much better if there are sufficient activities and attractions to keep visitors longer than three days.
On average, tourists stay a length of 1.4 days in Macau. Lengthier stays will depend on accommodation costs, said Aaron Fischer, head of consumer and gaming research with CLSA in Hong Kong. Nightly tariffs should ideally be HKD1,000 to HKD1,500 ($130- $195), instead of the HKD3,000 that some Macau hotels charge, he said. MDT/Agencies
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