"I'm here to consider investing in one or more integrated resorts," Adelson told local media Valor in Sao Paulo yesterday. Integrated resort is the name of gaming for LVS. At age 84, the businessman is considered one of the responsible for changing the face of Las Vegas in the last decades, when combining casinos - the rice and beans of the city - with hotels, theaters, shopping malls, restaurants and mainly large convention centers, all in one place.
Adelson had lunch last Monday at the City Palace, with Marcelo Crivella, mayor of the city of Rio de Janeiro. The businessman, one of the 20 richest men in the world, came to prospect in the Brazilian market, for the second time in a year, with a view to eventual legalization of casinos.
Some of the best known spots in Las Vegas belong to Adelson and follow this model, case of the Venetian, which reproduces Venice channels, with gondola rides and everything. "It was my wife's idea, Miriam," he says. "It was one of the places where we spent our honeymoon. She found the city romantic." The wedding goes into their 28th year and they travel together all the time.
Despite the fame of Las Vegas, it is probably in Asia that the integrated resort model is more easily recognizable. In Macau, LVS built six projects, with a total investment of US$ 14 billion. Of the total space available, only 4% is occupied by casinos, says Adelson. Everything else stays for the other activities.
In Brazil, the potential targets of LVS are, in principle, Rio and São Paulo - both large cities, with infrastructure as an established hotel network and international airports, says Adelson.
Realizing the investments, however, depends on many variables. The main one, of course, is the change in the law, which since 1941 prohibits gambling in Brazil. For years the discussion about making the activity legal again has surfaced, without significant advances.
In Congress, two bills to legalize gambling are being processed: Senate Bill 186/2014, which was barred in March by the Constitution and Justice Commission, and PL 442/1991, which has been going on for 27 years.
It seems disheartening to potential investors, but people accompanying the issue in Brasilia say that, despite possible setbacks, discussions on the matter are advanced, with the support of many congressmen. In addition, with the impoverished Union, pre-presidential candidates of different shades would be interested in getting more tax resources with the approval of gambling, says one such people.
Instead of specific projects, the opportunity would now be presented with the National Tourism Policy, which is under discussion and provides guidelines for the sector.
For LVS, in addition to collecting more taxes, the country would benefit from creating jobs and increasing the flow of international visitors. In Singapore, tourism revenue increased from US$ 18.9 billion to US$ 27 billion in 2010, when integrated resorts were opened, and last year. The arrival of foreign tourists in the period increased from 11.6 million to 17.5 million. In Brazil, to compare, that number in 2017 was 6.5 million - almost a third of Singapore. And it was a historical record.
Probably the biggest icon of the Asian country - something like the Christ Redeemer for Brazil - is the Marina Bay Sands, a three-tower complex joined at the top by a suspended infinity pool. The complex belongs to the LVS, which invested US$ 5.6 billion in the venture.
Could Brazil attract so many resources with a single complex? "It is possible but unlikely," Adelson replies. First, the cost of labor is cheaper in Brazil than in Asia. In addition, the construction of the Marina Sands was marked by unforeseen events that made the project more expensive: the land in the country can not be bought, only rented; there are limitations to obtaining material such as concrete and steel; specialized professionals needed to be brought from Japan and lacked sand, which came from Indonesia.
Brazil is an old acquaintance of Adelson, who owned the Comdex technology fair and even made editions of the event in São Paulo and Rio before selling the brand. The decision to re-invest in Brazil, if gaming is legalized, will depend on the model adopted, says the businessman. LVS wants casinos to be restricted to tourist complexes - the integrated model that, for the company, is the only one that can bring the desired benefits. "In Argentina there are small casinos, but we are not interested in that," says Adelson. The tax burden will be another point to evaluate.
Source: GMB / Valor.com.br
