Inside Asian Gaming

INSIDE ASIAN GAMING | September 2008 16 and keep them there. It’s nice to go for two or three days, you see some things, but then you want to go. We entice people to come for a week. And there’s a lot of things to do in the region on top of it, and you use the resort as a hub.” Mr Aymong adds: “Because tourism’s booming inVietnam,the capacity at hotels is jam packed. So there’s a lot of under-utilised assets, and I think that as we build more rooms, more things for people to do, they’re going to go there.” ACDL’s planned hub will eventually boast 9,000 guest rooms in five luxurious 5-star properties, and entertainment in the form of Las Vegas-style casino facilities, a Greg Norman championship golf course, In Focus Multiplicity of Experience The Ho Tram project’s lead architect, Paul Steelman, discussed the prospects of a beachside gaming destination in Vietnam with Inside Asian Gaming . Mr Steelman says Ho Tram offers visitors “a multiplicityof experience”,whichneither Macau nor Singapore can replicate. Mr Steelman highlights four popular travel categories to make his point. “You’ve got a city vacation like going to Madrid. You’ve got an entertainment vacation like coming here [to Macau]. You’ve got a beach vacation, which a lot of people like—beach, the water, rivers, lakes, that type of thing. And you’ve got the adventure vacation—you go rock climbing, Machu Picchu, or something of this nature.” The Ho Tram Strip offers all except the city experience, and ACDL is betting that there is an untapped market of punters wishing to combine fun in the sun with time at the tables. Mr Steelman acknowledges that theHoTramStrip’s picturesque location overlooking the South China Seas (Eastern Sea in Vietnamese vernacular) comes with its drawbacks as well. He points to the casinos in the Bahamas, where“at night it’s jammed, but at 10 in themorning,there won’t be anybody in the casino.”His task will be to meld the indoors with the outdoors to facilitate seamless transition between beach and baccarat. tennis facilities, a marina, a 1,000-seat live entertainment venue, a “unique” shopping experience spanning over 200,000 sq. ft of retailspace,thelargestaquariuminSoutheast Asia (four times the size of the Sentosa Island aquarium in Singapore), and even a “dolphin quest” attraction allowing visitors to swim and interact with dolphins. The 169-hectare development will also include a full-service spa and convention facilities with capacity for up to 8,000 people. Mr Subotic reveals the theatre will feature a “spectacular” show.“We’ve scouted the whole world to look for some talent, and I think we have it and we’re going to announce that soon. It’s an Asian show, but with a ‘wow’ factor.” As for the gaming, the resort’s capacity is currently restricted by its license, although “we’re allowed to apply to amend the license,” says Mr Aymong. “We’re at 2,000 slots and 180 tables.We’ll have 90 tables and 1,000 slots in resort 1.That’s a large casino. A little bigger than the Bellagio.” The Ho Tram project will be geared towards VIP gamblers, and ACDL has already had talks with several junket operators. Mr Aymong explains that junket operators, who are facing increasingly stiff competition, are seeking alternative markets to bring their clients to,in response to those clients’wishes to experience new destinations. Mr Subotic suggests that “as Mainland Chinese become sophisticated and have been to Macau many times, they’ll want new options. There are similar junket operators in the United States that haveoptions.They’realwaysofferingyou six or seven different places to go. Whether it’s Las Vegas, Atlantic City, Bahamas. So here it’s just going to evolve towards that. Right now there’ll be maybe Macau, Singapore and Vietnam, that are really of that type of calibre that a VIP gamer would look at.” List Wait ACDL hopes to eventually list on the Hong Kong Stock Exchange, though given the current state of the financial markets, Mr Aymong states“wewouldn’t be doing it right now.” For now, the project will be financed by borrowing, and because the company will only build the first two of its five planned resorts over the next couple of years (they are scheduled to open in late 2010 or early 2011), he feels “we have time on our side. We’ll position ourselves in the marketplace when we feel that it’s appropriate to raise the debt.” ACDL is also confident the project will stay on budget, and Mr Aymong points out : that“labour and rawmaterials are cheaper in Vietnam than in the rest of the world, which will help us compete against other markets.” Additional funding could also be provided by partners, and ACDL recognises thevalueof joining forceswithanestablished casino or hotel operator (or several) in order to not only benefit from the experience of the partner, but also to bring a brand name to the project. Mr Aymong observes “a lot of