In a prime example of increasing costs of casino hotel development in Macau, the latest figure given for the Melco PBL Entertainment project Crown Macau is US$512.6 million. In August 2005 the construction cost was estimated at US$192 million, almost one-third of the new figure. The building boom in Macau is proving expensive, with prices for both materials and labour rising rapidly. The company’s much larger City of Dreams already has a potential cost of US$2 billion that could be exceeded.

Last December Melco PBL listed successfully on Nasdaq but after initial positive trading the shares have fallen in value. Last Friday’s announcement of opening dates for Crown Macau brought a small gain, but some analysts predict that the opening of the Venetian Macau will draw much of the market that Crown Macau hopes to attract and that it is not in a prime location. According to the company, Crown Macau will have a trial opening on 28 April and be open to the public from 9 May. Saturday 12 May has been scheduled for a gala opening event.

Crown Macau is located on the northern side of Taipa Island and is to take the Crown brand into Asia. A 36-storey tower has 216 deluxe hotel rooms, 24 VIP suites and 8 presidential villas. Gaming floor area covers 17,000 sq m with over 200 gaming tables, 500 slot machines and private gaming facilities. The development also includes quality non-gaming amenities, including first-class restaurants designed to encourage gamblers to visit.

The more ambitious City of Dreams on the Cotai Strip scheduled to open towards the end of next year, will have an underwater-themed casino with 450 gaming tables and around 2,500 slot machines. The four luxury hotels include a Hard Rock and a Crown and the development will deliver ‘an experience that exceeds traditional five-star expectations.’ (E-03.12.07)

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