THE M3: SITES 5 & 6; CHING MING TOURISTS; MGM IPO; GRAND WALDO MALL; SMOKING BILL; FUEL SURCHARGE

04/07/11 08:58AM EDT

The Macau Metro Monitor, April 7, 2011



SANDS NEEDS 7,000 WORKERS FOR PARCELS FIVE AND SIX macaubusiness.com

Edward Tracy, Sands China’s president and COO, says the company will need 7,000 new workers to run Sites 5 & 6.

FEWER TOURISTS ON CHING MING FESTIVAL HOLIDAYS macaubusiness.com

According to official data, 304,000 tourists entered Macau over the Ching Ming festival holidays (April 3 to April 5), representing a 5.61% YoY decline.

MGM IPO DEADLINE UNCONFIRMED Macau Daily Times

“We were surprised to read the recent reports, as we don’t have any new information regarding the listing or deadlines. We are still waiting [for a decision],” a MGM’s spokesperson said.

FIRST OUTLET MALL TO OPEN AT GRAND WALDO Macau Daily Times

Grand Waldo will be opening Macau's first outlet mall in 3Q.  The Cotai resort said it will be the first casino/entertainment resort in Macau specifically targeting Taiwanese tourists, particularly mid-level consumers.  According to the major shareholder, Get Nice Holdings, a HKD 200MM investment will be required for the redevelopment of Grand Waldo. Get Nice added that intensified competition in the VIP market has shifted Grand Waldo's focus to families/young tourists.

Get Nice also mentioned the possibility of building high-end serviced apartments which can be built and sold on a strata-title basis, as part of the Grand Waldo resort.  Grand Waldo sits on freely transferable long leasehold land, unlike other major casino sites that were Government granted for gaming development and cannot be sold forward.

SMOKING BAN BILL TO BE ENACTED IN JANUARY 2012 Macau Daily Times

President of the Legislative Assembly's second standing committee, Chan Chak Mo, said he is confident the smoking ban bill will get final approval during April and that it will be effective starting in January 2012.  This means, one year later in January 2013, casinos will be required to set aside dedicated smoking areas of up to 50% of their total public area.  The Government will enforce the law by examining the casinos every three years.

FUEL SURCHARGES RAISED ON FLIGHTS FROM MAINLAND TO HK, MACAU People's Daily

According to Ctrip.com, Air China, China Southern Airlines and other major Chinese airlines have raised the fuel surcharge on flights between Chinese mainland and the HK/MSAR.  Air China and China Southern increased surcharges on flights from the mainland to Hong Kong from 140 yuan to 164 yuan on April 1. 

Previously, several airlines, including Dragonair, Cathay Pacific Airways and Shenzhen Airlines had already raised fuel surcharges on flights between Chinese mainland and Hong Kong as well as Macau.

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