At the 19th Annual Global Entertainment, Media and Telecommunications Conference in Phoenix, Arizona, Las Vegas Sands President and COO William P Weidner spoke yesterday on how the company would survive the present business environment, face a difficult 2009 and find the necessary liquidity for opening Marina Bay Sands in Singapore in early 2010. Calling the speed of the economic downturn unprecedented, Weidner said that whilst the major question was spend per head, people still demonstrated interest in gambling and entertainment.

Blaming Amax for a VIP market development bubble of 80% growth in Macau, Weidner commented that VIP-focused businesses would be in for a hard time. The Venetian Macao, he said, is mass market centred and LVS will continue to drive that market, which saw 30% growth last year. The Four Seasons Hotel is being repositioned to attract the middle market, particularly from Hong Kong. The company intends to dispose of non-core assets, cut all costs not related to customer experience and maintain a flexible business model.

Weidner anticipates that Pennsylvania will introduce table games in due course and the slots development in Bethlehem will continue as it could become the closest full casino to New York City. Gaming revenue at the Pennsylvania slots casinos so far have not been affected by the present economic situation. Similarly, the Singapore development is expected to be ‘extraordinarily valuable’ for LVS.

The Singapore economy is relatively buoyant and its location makes it a hub for many Asians. Population levels are much higher than in Macau, the LVS casino will be part of a duopoly and gaming tax has been set considerably lower by the Singapore government. According to Weidner this will make returns much higher at Marina Bay Sands than at the Macau properties and led to his comment that the Singapore operation would be extraordinarily valuable to the company in 2010/11. (E-01.08.09)

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