Inside Asian Gaming

September 2008 | INSIDE ASIAN GAMING 17 In Focus gaming companies are looking at growth markets to go into, and I think most of them would agree that Vietnam is the number one growth market, and number one emerging market in Asia. “I think that gaming companies need to look beyond their traditional borders. And as they learn and experience the market in Asia, it’s natural for them to look to the next jurisdiction to operate in. As they learn the experience in Macau—it’s been a pleasurable and profitable experience— they look towards the next city or country, and I think that’s Vietnam.” Still,ACDLiscautiousaboutthefinancial strains many potential partners are under. Mr Subotic says “we’ve been approached by a number of gaming companies already to have discussions. One problem we have is that a lot of them, particularly those operating in Las Vegas, are under a lot of pressure because of their debt load. Asian Coast is in a better financial position than most gaming companies currently because we don’t have that sizeable debt load and a shrinking market, as they do in the United States.” Ubiquitous competition Mr Aymong views all of Asia’s existing and planned major casino resort developments as potential competitors, but he believes Ho Tram will stand out from the crowd.“Malaysia’s a competitor to us. Macau is a competitor, so is Singapore. But in my opinion, we’re the only true destination. Macau is a day-trip destination. You’ll get more business visitors in Singapore and Genting. I think we’ll have people come to our resort, stay longer and have a better experience. They’re going to be able to eat at world class restaurants, and golf at world class golf courses. They’ll be able to play tennis, and gamble and really enjoy their room and their experience in a destination resort. And as a result, we think they’ll spend more money, they’ll stay longer, and they’ll come back.” Still,ACDL believes therewill be sufficient demand for high-class resort offerings in Asia to meet the coming supply. Mr Aymong points out “In the US and Canada there are 900 casino resorts, and in Asia only about 140, and a lot of them are small.There are 1.5 billion people in this region that are earning more money, wanting to travel more, and wanting to see new and exciting products. That’s what we’re building. We’re very complimentary to a market like Macau.” Also, the creation of a critical mass of casino resort offerings throughout Asia will bring other benefits to companies such as ACDL. For instance, Macau’s development has also led to the accumulation of a large pool of casino-operating talent in Asia, and Mr Subotic stresses that the company is hiring several “tier 1” personnel, because the project’s success will ultimately depend on the quality of its management and staff.“We just hired as our head of development the gentleman who helped build the Atlantis in the Bahamas and Sun City. The class and calibre of the people we’re taking on are tier 1. So we surround ourselves with that, that’s really the big difference.” Another new recruit is Ben Lee, former Chief Marketing Officer for Nagacorp in Cambodia, who joins ACDL as Project