Las Vegas rolls out red carpet for Asian guests

By Lisa Snedeker
Associated Press

LAS VEGAS — Scarlet paper lanterns flutter amid flashing neon signs and bright red banners bearing the Chinese characters "Kung Hai Fat Choy" — Happy New Year in Cantonese — are draped over casino entrances.

Chinese characters on the marquis of Caesars Palace wish wealth and prosperity for the Chinese New Year in Las Vegas. The Chinese New Year officially began Feb. 12, but Las Vegas will celebrate the holiday for at least two weeks. Associated Press

Resorts lining Las Vegas Boulevard trade their traditional headliners for such Asian entertainers as Hong Kong's Sandy Lam as they light up their marquees for visitors from around the Pacific Rim.

"The notion of luck is deeply imbued in Chinese culture," said Alan Feldman, spokesman for MGM Mirage Inc., the Strip's largest hotel-casino operator. "At the turn of the year, the commemorating of luck is often noted with the placing of a wager."

The tradition has become institutionalized over the past two decades in Las Vegas, where families from Asia and throughout North America come to celebrate.

The Chinese New Year officially began Feb. 12, but Las Vegas is celebrating the "Year of the Horse" for at least two weeks with Asian entertainment, customized menus, lavish VIP parties, complimentary rooms and other perks — depending on how much one wagers at the tables, casino executives said.

"Chinese New Year is on par with one of the major heavyweight boxing events that are scheduled in Las Vegas from time to time," said Debbie Munch, spokeswoman for Park Place Entertainment Inc., owner and operator of Caesars Palace hotel-casino, among others.

That's because the Asian holiday — second only to New Year's Eve for its economic impact on Las Vegas — traditionally draws large numbers of heavy hitters — known as high rollers or whales — to the city's high-limit gambling salons.

This year, casinos were concerned that high-end gamblers might not show up because of the sharp decline in travel since Sept. 11.

Those fears haven't been realized, Munch said.

"Overall, our attendance is up from last year," she said. "There's been a slight decrease in our attendance from Malaysia and Indonesia, but there's been an increase in visitors coming from Hong Kong, Taiwan and mainland China compared to last year."

Some industry experts paint a less profitable picture, in part pointing to a recession in Hong Kong, Taiwan and Japan.

"It was OK, but my sense is that Chinese New Year was below last year," said Jason Ader, a gambling industry analyst for Bear Stearns Co. in New York. "The overall trend is that Asian play is down."

A combination of caution and cultural respect for a nation mourning its Sept. 11 losses, kept Asian travelers home and nearly wiped out international high-end business in Las Vegas casinos.

In November, winnings from baccarat — the game of choice for Asian high rollers — plunged more than 80 percent on the Strip, a $40 million loss. It was the slowest month for baccarat in Nevada in eight years.

"That particular business was hit harder than other segments," Feldman said. MGM Mirage executives estimated that international high-end business fell 75 percent after Sept. 11, while domestic high-end business fell 50 percent.

That means Chinese New Year's significance has been growing over the past 20 years, industry watchers say.

The holiday can mean the difference between a gambling corporation posting annual profits or losses, said Shannon Bybee, executive director of UNLV's International Gaming Institute.

One reason the holiday has such an effect on casinos is the large amount of money being bet.

Industry experts say increased competition from the megaresort boom of the 1990s has led to the holiday's growing prominence along Las Vegas Boulevard.

Over the past decade, Las Vegas resorts focused their marketing efforts on bringing in chefs and specialty acts that are popular in Asia, but this year the focus was on bringing back the customers.

"We couldn't take for granted that they were just going to show up, especially with the reduction of air service from Japan (after Sept. 11)," Feldman said.

Executives for MGM Mirage and Park Place spent more time in Asia personally inviting customers to celebrate Chinese New Year's Vegas-style this year, the companies said.

Once in Las Vegas, Asian visitors find hotels eager to accommodate them.

Resorts have around-the-clock lists of employees who speak the high-rollers' languages — Cantonese, Mandarin, Korean, Japanese, among others, and they extend restaurant hours through the holiday to cater to their Asian clientele.

"Many of our Asian guests prefer to stay on their own time zone, which means eating late," Munch said.

Asian markets are crucial to Las Vegas' economic health, Rob Powers, spokesman for the Las Vegas Convention and Visitors Authority.

"Seven out of our Top 20 international markets are from Asia," he said. In 2000, Japan was the city's No. 1 overseas market.

"Anecdotally, we have heard many of the properties here are optimistic about this Chinese New Year, especially in light of the events of Sept. 11," Powers said. "It's a general sign and one indication that the Asian market is returning."

Las Vegas' popularity among Asians hasn't diminished, Lam agreed.