Earlier on MGM China, a subsidiary of MGM Resorts International, said the opening of its US$3.1 billion MGM Cotai resort would be moved from the fourth quarter of this year to the second quarter of next. Given 18 straight months of declining gaming revenues in the Macau casino industry, MGM China’s CEO Grant Bowie said the delay was made to better understand changes in the local market. “This decision is a good decision for Macau and it is a very good decision for MGM,” he said. “The transition from the VIP Market to mass market is occurring. That transition is probably taking longer and for growth to come back to Macau is taking longer than we expected. And I think that, therefore, it makes sense that we take a little bit longer to make sure that we have the right product.” MGM Cotai will be the operator’s second casino in the city, with 1,600 hotel rooms.
Last November, Wynn Macau announced a delay in the opening of its US$4.1 billion Cotai project Wynn Palace, from March this year to June. Yet another resort now being built in Cotai is the US$3.9 billion, 2,000 room Grand Lisboa Palace, belonging to local concessionaire SJM which is scheduled to open in the fourth quarter of next year.
In spite of the delays, shares in Macau concessionaires have been rising amid optimism that the local market could be bottoming out. MGM’s Macau operations reported better-than-expected December quarter earnings. Las Vegas Sands said its management saw signs of improvement ahead. Wynn Resorts’ CEO Steve Wynn, meanwhile, said January was “our best month in a long time.”
