Chinese President Xi Jinping ended his two-day visit in Macau by reiterating his cautionary advice that the administrative region should try to boost its economy with activities that do not involve gambling. He also pointed out that Macau’s casino industry needs strict regulations and monitoring.
Xi Jinping, however, refused to comment on the corruption scandal in mainland China that has led to a significant decrease in Macau’s gaming revenue.
As it was previously reported, Chinese government initiated a crackdown aimed predominantly at officials who gambled with public money as well as at local junket operators. Due to this operation, Macau’s drop in revenue and the decline in VIP players is expected to continue up to the second half of the next year.
Xi Jinping’s warning and the general downtrend do not bode well for the Louis XIII hotel and casino project in Macau. The plan for the venue belongs to Stephen Hung, a major Hong Kong-based investor. It is to be located on the Cotai Strip. The hotel facility will offer extremely luxurious rooms to its guests. What is more, jewelry shops will be selling expensive trinkets worth millions of dollars. And the project includes many more attractions.
Back in September, Hung ordered 30 Rolls Royce Phantoms that will transport the VIP players to and from Macau. The US$20-million order is the largest that the manufacturer has ever been asked to complete.
Mr. Hung’s Louis XIII Holdings Ltd. announced its plan to raise the amount of HK$3 billion, so as to be able to finance its hotel and casino project. The company decided to issue a certain number of shares in the venue.
On November 20, the company stated that the shares price would vary between HK$3 and HK$4. On Friday, it placed a price of HK$2, instead. It reached HK$3.23 per share by the end of the day.
Casino Louis XIII is planned to offer a total of 66 gaming tables to its visitors. Of those, 50 are intended for premium mass players and the rest are for VIPs. It has also been announced that it will be operated by one of the already existing Macau-based concessionaires or sub-concessionaires. Yet, the company refused to reveal the identity of the license provider.
Last year, the capital costs of the hotel and casino project were estimated to amount to US$800 million. And according to the information released in November, some of this money will be spent on the development of the hotel facility’s interior.
The venue is expected to be completed and to open doors for guests and visitors some time in 2016.
