Macau Gov’t holding up development of new Cotai resorts

Macau, Slider 05 Aug 2014
Macau Gov’t holding up development of new Cotai resorts

Gaming operators are facing challenges in developing their new casinos and hotels due to the government’s cumbersome licensing regulations.

Some new casinos and hotels only hold construction licenses to carry out earth or foundations works.  Wynn Macau being an exception as it has been granted a superstructure construction license, and Sociedade de Jogos de Macau holds a foundation construction license,and The Parisian currently being developed by Sands China, holds a flatwork construction license.  according to the Land & Public Works Transport Bureau (DSSOPT)

Last month, newspaper Tribuna de Macau reported that DSSOPT had called a halt to all construction work of the Parisian, as Sands China held only a license for earthworks, but a building structure had already been developed.In an earnings call with analysts last month, the CEO of Las Vegas Sands Michael Leven confirmed that construction works had stopped, and they were waiting for approval from the government. The anticipated opening date remains;The Parisian, which has its own Eiffel Tower replica, is due to open by the end of 2015.

“The construction at the moment has stopped, depending [on] when we see certain approvals from Macau government that we hope to obtain shortly. We’re positioning ourselves right now to be able to resume full activity once those necessary approvals are received,” .

Sands China has “no plans to change the anticipated opening at the end of 2015 at this point.”  Michael Leven further stated.
Citing “sources with knowledge of the process” Newspaper Hoie Macau said that construction works of MGM, Wynn and Macau Studio City in the Cotai Strip might be halted too, due to the lack of updated construction licenses.

Regarding the recent accounts indicating that construction works had already been stopped in most casino resorts under development at the Cotai Strip, Wynn and SJM denied any work suspension on their sites and were quoted as saying
“There is no disruption of any kind in the construction of Wynn Palace. Work proceeds apace,” SJM were also quoted as saying that “there has been no suspension of work at the Lisboa Palace site.”

The next wave of development of Cotai resorts includes Sands China’s Parisian; Wynn Palace; SJM’s Lisboa Palace, MGM Cotai; and Melco Crown Entertainment’s Macau Studio City, among others.

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