Take-A-Break: Macau Studio City

Posted: July 13, 2011 in Uncategorized

This post of Take-A-Break was taken from the report of IAG’s July issue, about the ‘fall & rise’ of almost forgotten project in Macau – the Macau Studio City (or MSC for short).

13 July, 2011

MSC - An ill-conceived project from the beginning...

Commentary by industry experts:

  • The e-Sun led project was an ill-conceived idea from day one, without solid plan for financing of the project;
  • The concept of MSC failed to meet the real demands back then, that’s gaming and hospitality, not the product mix of Macau Studio City tried to offer;
  • The current revival of MSC with new partnership would serve the project well;
  • Macau government would not give any preference to the new MSC project, because it involves further increase of gaming tables and devices. Beijing is adding pressure to this;
  • By 2015 when MSC is launched (big if), mass market demand (already max out) and VIP gaming landscape will change drastically. Therefore the foreign banks are not too keen to lend. The project will have to seek capital from the debt market, with higher interest rates, based on current economic situation in the US and Europe.

 

 

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