In Macau it was gangsters and prostitutes, in Downtown Las Vegas it was prostitutes and bums, but both places are now intent upon polishing their image and becoming profitable, and respectable, gambling locations. Macau’s transformation is already well under way as it bids to become the entertainment capital of Asia, and Downtown Las Vegas is the subject of an ambitious investment plan that could revitalise the area. In Las Vegas the Downtown area has long been overshadowed by the more popular and profitable Strip. In Macau a land reclamation site, the Cotai Strip, will emulate the Las Vegas Strip with projected investments of over US$15 billion.

Barrick Gaming has bought six casinos, several smaller properties, and areas of land with a valuation in excess of US$200 million. These give Barrick over 30% of property in the area and a 40% stake in its gambling market. During the next decade the company plans to invest US$1 billion on its way to going public, and it’s not only on gaming projects – hotel towers and high-rise condominiums also figure. The first project is the renovation of the Plaza hotel and casino, a property next to an empty 61-acre plot that was once a railroad switching yard and is now the subject of an extensive development plan to include an arts centre, a medical research facility, transportation depot and possibly a major league basketball or baseball stadium. The Plaza would be well placed to benefit from its proximity to a hub for tourists, workers and residents.

On the Cotai Strip Las Vegas Sands has outlined its Venetian replica project that will occupy an area of 10.5 million sq ft with 3,000 suites, 1million sq ft of meeting and exhibition space, a 2,000-seat show room, 850,000 sq ft of retail space and a 15,000-seat arena for completion in early 2007. Seven hotel groups will be joining Las Vegas Sands to build an additional seven hotel-casinos on the Cotai Strip, in a US$1.8 billion first phase of development. InterContinental Hotels Group Plc, Four Seasons Hotels Inc, Marriott International Inc, Starwood Hotels & Resorts Worldwide Inc, Hilton Hotels, Dorsett Hotel Group and Regal Hotels are among a group of investors proposing to turn Macau into the Las Vegas of Asia.

The Cotai Strip is expected to boost tourist numbers from 17 million to 40 million, most coming from the Chinese market of 1.3 billion people in the People’s Republic of China, where there is a rapidly expanding middle class able to spend money on entertainment. The new Macau will emphasise the exhibition and convention side of business as well as becoming family oriented with a fully integrated resort concept. Unlike Singapore’s proposed integrated resort concept, which is not to become a replica of Las Vegas, Macau is happy to reproduce the volcanoes and canals seen along the Strip.

Downtown Las Vegas is set to boost casino revenues and visitor numbers in competition with the Strip. Downtown Macau and Stanley Ho’s 13 casinos will face a challenge from the new Cotai Strip. At present both Las Vegas and Macau are seeing rapid growth in casino revenues, and forecasts are good for the future. However, the Las Vegas of Asia is expected to overtake the original in gaming profits this year and maybe well on its way to becoming the new holder of the title Gaming Capital of the World. (E-03.21.05)

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