Sheldon Adelson is the exact same guy who chairs both Venetian Las Vegas and Venetian Macau. However, it seems that he had misread both markets thinking what is applicable in Las Vegas is applicable in Macau.
However, reality struck – both aren’t just the same. They are far from same. While Las Vegas has turned out to become a money machine by filling the venue with gamblers, as well as good hotel occupancy rate, good number of vacationers, and dozens of bars and restaurants are full, the Venetian Macau is the exact opposite.
Situated in a 1,800 seat theater, problem is most of these attractions are half empty even as tables and machines are crowded with players smoking, drinking and shoving chips. In short, Adelson is incapable of recreating all of his successes in Las Vegas that made investors worry so much most especially that he has doubled his gambling palace in Singapore with even more casinos in Macau.
Shares in Sands China also fell. But for him, there must be no turning back. Since it is already there, he just cannot afford to play to lose. As such, he will soon resume construction on casinos and hotels that were temporarily ceased last year. Although a payoff of $2.2 billion earmarked for these projects may take several years, he is rushing to complete Singapore by 2010.
Maybe it is all because of the culture. As statistic would say, non gambling revenues only account for just 14% of Sands China’s Sales. Because Chinese seems more inclined to leave their families at home depriving the mall and hotel of customers unlike Westerners where they tend to bring their whole family for vacation.
But whatever it is, Adelson must put into practice the realization that Asian and Western has two different cultures with different beliefs and way of life.