Wednesday, September 13, 2006

I wanted to share a few thoughts from my visit to Macau. Last year the Sun
sent our tourism reporter Richard N. Velotta to Macau (and Beijing and
Singapore) and Richard wrote a top-notch series of stories that helped Sun
readers understand the power of the Chinese economy and its tourism impact
on Las Vegas, the vibrancy of Macau casinos and the gaming potential of
Singapore. I had long ago asked Richard to prepare to travel again to Macau
when the $1.2 billion Wynn Macau opened. Not only did Sun Managing Editor
Michael Kelley approve Richard's second visit to Asia in a year, he asked me
to go as well. Macau is having and will continue to have a big impact on the
worldwide casino business and on Las Vegas-based resort operators. When Wynn
Macau opened Tuesday, there were dozens of journalists on hand. Most were
from Hong Kong and Macau. Asia-based reporters from the Associated Press,
Reuters and the Wall Street Journal also were there. Richard and I were the
only two reporters on hand from Las Vegas. Traveling around the world is
expensive, but the Sun willingly spent the money so that its readers would
be able to understand what is going on in Macau - and what is expected to
take place - from a Las Vegas perspective.
. . .

The Wynn Macau opening was a landmark for the Chinese enclave. Steve Wynn
told me right after he won the Macau casino concession that he wasn't going
to build a no-frills gambling hall just to get his straw into the drink as
soon as possible.

Wynn felt that he owed it to the Macau government officials, particularly
its Chief Executive Edmund Ho, to build a quality property that would reward
Ho's belief that Las Vegas resort operators could help transform Macau's
casino-based economy.

I met Ho the evening of the opening and it is apparent that he is quite
pleased by Wynn Macau.

And he should be pleased and proud of the new resort - by far the nicest and
most luxurious in Macau. Although it remains to be seen whether Wynn Macau
will generate the kind of high-rolling action it needs to succeed, no one
has become rich betting against Wynn.

. . .

Former Golden Nugget owners Tim Poster and Tom Breitling were among Wynn's
invited guests at the opening. Although neither was willing to confirm their
intent to pursue a joint-venture opportunity with Wynn, there are a few
clues that suggest just that.

First, Wynn has said he intends to partner in joint-ventures to develop his
54-acre site on Macau's Cotai strip.

Second, Poster and Breitling are friends with the Fertitta brothers (Frank
III and Lorenzo), Station Casinos top two executives. Wynn has mentioned the
Fertittas as the kind of operators he'd like to joint-venture with.

Third, Poster and Breitling have visited Macau a few times in the last year,
and both said they are interested in Macau opportunities.

. . .

The most amazing thing I saw in Macau was the Sands casino. The casino owned
by Venetian parent Las Vegas Sands has more table games than any other in
the world, a jaw-dropping 740, most of them baccarat.

Big Las Vegas casinos have about 150 tables. The best way I can think of to
relate what the Sands looks like: Take the entire giant rectangular casino
floor at Bally's, stack two more floors exactly the same size on top, and
fill all three floors almost from wall to wall with tables. Then put a crowd
of players around almost every table. It's like viewing the Pacific Ocean
after spending your life looking at Lake Mead.

. . .

One of the best things about Macau casinos is the quality of the employees.
They are hard-working, talented and eager to please. The Wynn Macau workers
seemed exceptionally courteous and one reason why may be the way they are
treated.

On the Wynn employee dining room menu on Tuesday: Lobster tails and beef
tenderloin among dozens of high-quality offerings.

Jeff Simpson is business editor of the Las Vegas Sun and executive editor of
its sister publication In Business Las Vegas.