Parisian will drive demand: Wong

Thursday 8th of September 2016

The opening of the Parisian Macau will not cannibalize the firm’s existing Macau properties, said Wilfred Wong, president and chief operating officer of Sands China, quoted by local media.

Instead, the new venue will stimulate new demand, he said.

“...We’ve done a series of promotions, particularly through social media – we have now got a very positive response,” said Wong.

“Hopefully, new properties like the Parisian Macau are going to improve Macau as a destination; and I’m expecting this to create more visitation,” he added.

Last month, Daiwa analysts warned that investors were overestimating the ability of new openings to increase the operator’s market shares and drive growth in the market.

In reference to Wynn Palace, Daiwa said there was no conclusive evidence over Wynn Macau’s 10-years in Macau that proves the properties had taken market share or driven incremental demand for the industry.

Sands on the other hand has had a mixed track record in regards to new openings, the analysts said, but noted that Sands actually lost market share after Four Seasons opened.

“After Four Seasons/Plaza’s opening in August 2008, Sands actually ceded more than one-third of its mass market share to its competitors — a 10pp change that is equivalent to more than the entire market share of Wynn or MGM today.”

In July, Morgan Stanley analysts forecast that new openings, including Wynn Palace and Parisian Macau, would drive a faster market share shift from the Peninsula to Cotai, given positive signs coming from overnight visitors, mass revenue growth in Cotai and the lower pricing of Cotai hotel rooms.

Sands China currently owns The Venetian Macau, The Plaza Macau and Sands Cotai Central at Cotai Strip Resorts Macau, as well as Sands Macau on the Macau peninsula.

In a separate interview with Macau Daily Times, Wong stressed the resort’s focus on families, leisure tourists, locals, and the MICE industry.

“Yes, we feel this is an important segment,” Wong said in regards to the MICE industry. “ The second segment would be the families, the middle class – an affordable, luxury type of tourism – so we have kids’ facilities (a kids’ club that is sized at 20,000 square feet) linked to an “Aquaworld” and for the parents, you have 170 retail shops,” he said.

The property’s full array of facilities also include 3,000 guestrooms and suites, convention and meeting space, international restaurants, spa, kids’ club, health club, pool deck with themed water park, and 1,200-seat theatre, among other amenities.