Studio City mass market focus dependent upon gaming tables

The government is keen to transform Macau into a World Centre of Tourism and Leisure based more on the mass market than the VIP model that has been the reality until present. However, the Co-chairman and CEO of Melco Crown, Lawrence Ho (pictured), said that a mass market oriented strategy for Studio City is dependent upon the number of tables granted by the government. The company is requesting 400 tables for the new resort slated to open on 27 October. “The ultimate table-grant number would determine what we’re going to do. But if we are on the low end of it, there’s always a chance that we would just focus on the [VIP segment] and premium mass”, Lawrence Ho Yau Lung said during the presentation of results for the second quarter. “We’re extremely concerned about the table allocation. If we get the low end it would have a drastic impact on our financial modelling”. Focusing on the non-gaming attractions of the new resort, which has been demanded by the government’s policy, the son of Stanley Ho stressed that Melco Crown has been “a model citizen in Macau in terms of investment and in sticking by their [government’s] policy . . . Hopefully, there is a reward at the end of the day for a model citizen”. Sun City opens more rooms in Altira During the conference to present Melco Crown’s second quarter results, the CEO also praised the “symbolic” change on transit visas policy, which extends the period of transit that Mainlanders are allowed to stay in Macau from five to seven days. “Transit visas increasing from five to seven days is not practically relevant because people don’t really stay for five to seven days. But it’s just the sentiment that tells our customers that they are not unwelcome to Macau any more”, he said. While mass market is the new focus of the company, Lawrence Ho also discussed the new approach of the company to the VIP segment. He revealed that while some smaller junkets are closing rooms, the city’s largest operator, Sun City, continues to expand the number of rooms in the company’s Altira property. “We have been looking at the optimisation of the smaller junket operators, while the larger ones are gradually ramping up quite well. Since the beginning of the year, junket operators like Sun City are opening new rooms in Altira. The key is really more to do with the optimisation of the smaller junket operators”, he said. During the second quarter, the net revenues of Melco Crown went down 24 per cent year-on-year to US$916 million.