Construction crews are back on the job at Wynn Resorts’ $5.1 billion integrated resort, Wynn Al Marjan Island in the United Arab Emirates. Work was suspended on 28 February, after US and Israeli forces attacked Iran in the military action dubbed Operation Epic Fury. Iran responded with missile and drone strikes that affected neutral countries in the region, including the UAE.
Days before the first strikes on Tehran, countries including Finland, Australia, Germany, India, Poland and the United States issued travel advisories warning citizens to leave the region. After the conflict began, the US State Department told Americans to “depart immediately” for their own safety.
Wynn, meanwhile, offered employees “the opportunity to work from abroad if their home embassy recommends they do so”.
Wynn: Business as usual
As of Wednesday, Wynn said project construction had “resumed following a short pause. Steps have been taken to ensure the safety and security of all employees working on site. We note that for broad segments of the local population, business continues to follow normal patterns.”
In a January construction update, the company said the resort tower had reached 299 metres, with structural concrete complete through the 71st floor. In addition, all 1,530 guest rooms, suites and townhouses were complete, along with the luxury Marina Estates. Progress continued on the 648-metre Wynn Bridge, connecting the resort to the E311 and E611 highways, for “a seamless link between Dubai and the Northern Emirates”. Barring future interruptions, the span will be finished this year.
Wynn also announced that a residential community for more than 7,000 workers, called Oasis, would be open by summer. The operator called it “among the most comprehensive colleague-living developments in the global hospitality sector”.
Roadblocks ahead
In an analysis, Business News Today said Wynn Resorts “is treating this as a manageable disruption rather than a project-threatening event”. The operator has invested more than $914 million in the project to date, it added. “Sunk capital of this magnitude tends to anchor corporate decision-making even in volatile operating environments.”
The crisis has affected operations at Dubai International Airport, about an hour from Wynn Al Marjan. It has also disrupted shipping channels in the Strait of Hormuz, causing bottlenecks that are affecting supply deliveries and driving up costs. Forbes reports that freight suppliers are adding risk-based surcharges that range from $2,000-$4,000 in increased fees per container.
In comments to the Las Vegas Review-Journal, Kim Noland, director of high-yield research at New York-based Gimee Credit LLC, said Wynn and other global hospitality firms “could all be hurt by a war in Iran that makes the consumer pull back on international travel plans”.
That includes another Vegas-based gaming giant. MGM Resorts International is currently building a $1.2 billion non-gaming resort on Jumeirah Beach in Dubai. Its application for the region’s second gaming licence is still pending.
Wynn confident in UAE safety
For the record, Wynn insists the current war will not compromise the UAE’s reputation as a secure, stable, business-friendly climate and a playground for international travellers.
“The company continues to be in regular communication with the governments of the United States and Ras Al Khaimah, UAE, so we can make informed decisions,” it stated. “The company believes the broad defence posture of the UAE has worked extremely well. And we have confidence in the UAE’s ability to keep its population safe.”
Marjorie Preston
Marjorie began her gaming career in 2007 and has focused on Asian gaming markets since 2020. Outside of work, she writes about travel and film and plays the drums.
Original article: https://igamingbusiness.com/casino/amid-regional-hostilities-construction-resumes-on-wynn-al-marjan-island/
