Inside Asian Gaming

October 2009 | INSIDE ASIAN GAMING 25 source added that the country’s earnings from abroad have been growing steadily throughout the last decade and rapidly in the last two years. That may be attributed at least in part to the remittance culture created by large numbers of Filipinos working overseas and sending money home. The source said the Metro Manila projects would be able to pull in VIP players. The spokesman added the Group expected the Manila schemes to appeal especially to mid-range high rollers (in terms of check-in value) looking for high quality service of the sort traditionally found in the Philippines. A significant portion of these VIP players are likely to be existing Star Cruises clients looking for additional entertainment to complement their cruise trips. “Using the Star Cruises client database, and its VIP [agent] contacts, we are planning to put in a lot of these middle range junkets with middle range VIPs,” explained the source. The spokesman added that the competitive environment created by the increase in casino capacity in the Asia Pacific region meant many gaming agents were shopping around regionally on behalf of their clients. Each agent is looking for the best ‘bang’ for their player’s buck. Genting’s Metro Manila casinos will offer mid level junkets the opportunity for their clients to be treated as top tier VIPs, adds the source. Cash play The spokesman adds that the strength of this mid-range VIP business model is that it isn’t based on extending credit to gamblers. “The advantage we have at the moment is that a lot of those players don’t need credit,” explains the source. Star Cruises’ database shows that the majority of its VIPs are cash players, adds the source. Unlike in the Macau market, where the VIP business is based heavily on credit, Star Cruises’ customers are very ‘liquid’ explains the spokesman. Check-in levels are not comparable to those in Macau, says the source, but Star Cruises check-ins are typically HK$100,000 per session, with some players checking in several times that. This is similar to the US$25,000 to US$30,000 check-in range for mid market VIPs visiting NagaWorld, the monopoly casino and hotel resort in Phnom Penh, Cambodia. Resorts World Manila on its own is a Philippines Manila Bay could potentially be operational within three years. “The Manila Bay project will start when we finish the development of Newport,” states the source. The spokesman added that the timing would depend on market conditions, both in terms of consumer demand and finance. The source stresses, however, that having a strong local development partner would allow the Manila Bay scheme to be executed quickly and well. The source said a quick turnaround had already been achieved on the Resorts World Manila scheme. “From the time we started looking at the Metro Manila Newport project to the time that we started business, altogether you are looking at about 18 months. That’s the kind of time frame you are looking at [for Manila Bay]. So if we really want to move fast, our partner—being one of the largest property developers in Manila—can make it happen,” stated the Group source. Time scale The spokesman adds it is likely to be another 18 months from now before the three phases of Resorts World Manila are completed. If Manila Bay takes another 18 months after that, then work on the two Metro Manila projects would tot up to 36 months—i.e., three years. The timing on the second project would depend on investors’ appetites for new gaming projects in the market, explained the source. The Philippines has tremendous potential both in the mass- market segment among locals, and for mid-level VIPs from home and outside the country, adds the source. The spokesman cited the country’s population of 90 million and consistent GDP growth in recent years, even during the financial crisis, as causes for optimism. The US$700 million project, while NagaWorld’s redevelopment was listed last year as one seventh of that outlay. As a result, Genting Group thinks the two properties are aiming at different markets. Master Plan Genting’s entry to the Philippines market has been carefully judged T he Genting source explained the strategy of Star Cruises and its parent Genting Group in the Philippines market. On the Resorts World Manila project, Star Cruises is managing the project on behalf of the joint venture company via a management contract between the holding company, Travellers [International], and Star Cruises. The Genting Group strategy is to utilise Star Cruises’ local expertise, says the spokesman. The Philippines partner brings the local contacts and local know- how, especially on the construction side, along with in-depth knowledge of planning procedures and policies, adds the source. Star Cruises is contributing its expertise in managing hotels, gaming and support operations. Star Cruises recently centralised its state-of-the-art surveillance [security] office in Manila, explained the source. As a move to improve efficiency, Star Cruises closed down its back office in Port Klang outside the Malaysian capital Kuala Lumpur and moved its call centre, the surveillance office and some of the back office finance into Manila, said the spokesman. Big Brand Resorts World Manila extends Genting’s gaming identity in Asia The use of ‘Resorts World’ branding for Genting’s new resort at Newport City in the Philippine capital Manila is a sign of the company’s commitment to the project and the increasing globalisation of the gaming industry in the region. Branding is a useful way of telling consumers what they can expect of a product in terms of service, surroundings