Macau: Tough times no bar to Lawrence Ho’s Studio City

Lawrence Ho is no stranger to delivering a multi-billion-dollar casino project in tough times.

Lawrence Ho has great confidence in the new Studio City casino in Macau. Picture: Bloomberg

The man leading James Packer’s Macau’s fortunes, Lawrence Ho, is no stranger to delivering a multi-billion-dollar casino project in tough times. And that gives him confidence in opening the $US3.3 billion ($4.5bn) Studio City in a slumping market.

Mr Ho, co-chairman and chief executive of Melco Crown Entertainment, in which Mr Packer’s Crown Resorts has a 34 per cent stake, told The Australian he had form in achieving success in less than ideal times.

He said that the company had opened City of Dreams in Macau six years ago during the “financial tsunami”.

He said that despite the timing of its launch, the resort casino had achieved great success for the company in helping to turn the city into a world-class entertainment hub. “Our successful experience with City of Dreams gives us added confidence that Studio City, with its high-end brands and unique ­attractions, will significantly strengthen that city’s appeal to local customers and international visitors seeking an exciting leisure and entertainment experience,” he said.

“The Macau government has been very supportive in encouraging the industry to diversify. Studio City with its wide range of spectacularly unique entertainment offerings inspired by Hollywood-style glamour is set to take entertainment to an unprecedented level of excitement in Asia and subsequently redefining Cotai and Macau while driving revenue growth.”

Macau, which overtook Las Vegas as the largest global gaming market in 2006, has for the past 18 months recorded a slump in gaming revenue.

Macquarie’s gaming analysts are negative about the region and believe it will suffer the highest total gross gaming revenue fall among Asian gaming countries.

But Mr Packer would be hoping his Macau fortunes turn around as he prepares to walk the red carpet tomorrow night for the gala opening of Studio City.

While the exodus of VIP clients from Macau, on the back of China’s crackdown on graft, is hitting gaming revenue, the Asian gaming hub has been transforming from a high roller-focused centre to a “mass-­focused” entertainment destination.

Mr Ho said Melco Crown had tailored its investments and market strategy to attracting a diverse clientele from both gaming and non-gaming sectors. “We are well prepared to bolster our presence in the mass market to grasp the growing opportunities in this segment, as demonstrated through substantial and innovative enhancements to our assets.

“Diversification and innovation are paramount in overcoming the challenges and ensuring sustainable success in the city.”

Mr Ho said he believed Studio City had the most diverse portfolio of non-gaming entertainment offerings ever seen in Macau, which were designed to cater to the increasingly important mass-market segment. It was geographically well-positioned to serve Asia’s increasingly important mass market segment, he said.

Mr Ho said the opening of Studio City would see the integrated resort operator double its hotel room inventory, which would let it cater to the multi-day-stay needs of more customers.