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Who lost China?

Posted At : January 5, 2009 04:16 PM | Posted By : D McKee
Related Categories: International,Sheldon Adelson,Politics,Macau

That used to be the rallying cry of hardcore Cold Warriors in the Fifties. Today we might ask that question and then point the finger of blame at Gov. Jim Gibbons (R-NV). At present, Midnight Jim is embroiled in a nasty feud with Lt. Gov. Brian Krolicki (R) over Gibbons' attempt to summarily install the crony of a crony atop the Nevada Commission on Tourism.

It's a sad day when you take the word of the indicted lieutenant governor over that of the unindicted but feloniously stupid governor. However, what else to make of Gibbons' imbecilic contention that, as reported by the Gibbons-friendly Las Vegas Review-Journal, "the agency is wasting money by targeting the Asian tourist market." The Gibber thinks the dough should be spent closer to home, specifically in California.

While the argument that California may represent a higher priority than China or Japan deserves a hearing, there's no denying Krolicki's rejoinder that, "The more Asian tourists we can bring to fill our rooms, fill our dinner tables, see our shows ... the quicker we will recover from our slowdown." And for Gibbons to write off the Pacific Rim as "a waste of money" is a breathtaking display of ignorance. Anybody who isn't aware of the importance of Chinese New Year to the economic health of Nevada has no business being the governor of the Silver State.

Macao may be eating some of Vegas' lunch but that's no excuse to run up the white flag of surrender, especially at a time when Peking is constricting its citizens access to the former Portugese enclave. Nor, with casinos ramping -- or likely to soon do so -- in the Philippines, Taiwan, Japan and Singapore, does it send a message of confidence when the sound emanating from the governor's mansion is the whelp of a beaten dog.

Compounding the inanity of Gibbons' behavior is his insistence on imposing the dubiously qualified Kirk Montero to a $117,000/year sinecure not only when Nevada is in dire straits financially but when Midnight Jim has proposed eliminating that very position roughly six months hence. It's practically a rerun of the Gibber's witching-hour revocation of Gaming Control Board appointments made by predecessor Kenny Guinn, only now in outright Keystone Kops style, proving yet again that history repeats itself, first as tragedy and then as farce. All that's missing to complete the picture would be for Gibbons' trousers to fall down around his ankles.

Leaving behind Gibbons and his "Forever say 'die'" spirit, Macau Business has a fascinating package of stories on the current employment woes in the Macanese casino industry. Some darkly mutter that Peking is conducting a pogrom against expatriate workers, in preparation for an imposition of direct rule. Interestingly, one businessman is quoted as saying that convention business in Macao had ramped up impressively, with hotel occupancy rates to match, so you'd think Las Vegas Sands' business model was paying off in spades.

However, Sands President William Weidner was reported elsewhere as blaming the company's troubles on its visa restrictions largely meant to stem gambling by Chinese citizens. Which is true, to some extent, but -- if reported accurately -- it would seem to contain the tacit admission that Sands was funding its Cotai Strip™ partly by cannibalizing existing casino revenues. If that was indeed Sands' strategy, when visa curbs went in then out went the rug from under CEO Sheldon Adelson's feet.

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