The Macau Metro Monitor, September 28th 2010
VISITOR ARRIVALS TO SINGAPORE GROW 18% IN AUGUST STB, Channel News Asia
Visitor arrivals to Singapore registered 18% growth in August to 996,000. It is also the ninth consecutive month of record visitor arrivals. STB stated that the two IRs, Youth Olympic Games, and the strength of the Asian economy attributed to the growth. The top markets--Indonesia, China, Malaysia, Australia and India-- gained 25%, 51%, 22%, 2%, and 4%, respectively.
STB also said average occupancy rate in August rose to 85%, a gain of 7.6% points YoY. ADR increased 24.7% YoY to S$218.
NEW VIP COMPETITION WAR IN MACAU? Asian Gaming Intelligence
According to AGI, one Macau operator is now offering a 57% share of the VIP profit to junkets, keeping only 3% for itself. This would be 15% more than Wynn Macau has reportedly being offering junkets under its profit share set up. AGI believes the 40:57:3 model could bring about a price war as aggressive as those seen in late 2007 and the autumn of 2009. The 40:57:3 model probably only makes economic sense for the operator if the operator no longer has to staff and directly manage the VIP rooms involved and passes that responsibility instead to the junkets.
MGM MACAU GETS CLOSER TO HONG KONG IPO MGM, macaubusiness.com
MGM China Holdings Limited, yesterday filed a proposed listing application with the HKSE. According to MGM Resorts International, “there have not been any decisions made regarding the timing or terms of any such listing or whether MGM China Holdings Limited will ultimately proceed with such a transaction or whether the proposed transaction will ultimately be approved by the Hong Kong Exchange.” According to previous media reports, to goal of the IPO is to raise US$500 million (MOP4 billion).
