Macau Studio City – Concept or Finance?

Posted: July 19, 2010 in Uncategorized

Interesting news
19 July 2010 Mon
 
  
The project of Macau Studio City has been dragging its feet for 4 years and nothing really happened. The stalled project ends up the principal taking legal action against joint venture partners.
Why?
There could only be few probable reasons for the project.
Firstly, could it be due to its doubtful concept in which the joint venture partners see it as “no hope” as Macau evolves?
Or, could it be likely due to failure to solicit adequate financing for the project?
 
As we at Professional Ground sees it, both the Concept and Financing factors are equally crucial for the Studio City project. It is envisaged that such concept of combining entertainment coupled with film studio is no longer new to Asia and, it is not a powerful concept per se for a mega project to thrive in Macau.  Simply put, it is no longer viable to replicate another Hong Kong or Taiwan or Hollywood’s entertainment scene in a territory like Macau.
In hindsight, therefore it is not surprising that Macau Studio City finds it difficult to acquire the right financing to support a project of this magnitude yet with a content that is no hope of becoming the project’s mainstream revenue, not even Playboys Club.
To compete effectively in Macau, in essence it is “junket economy + mass market shares, stupid!”.
 
* Cross reference:  “Asia’s Las Vegas… Macau Is Taking The Long & Winding Road”  in this blog.
 

 

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