Inside Asian Gaming

inside asian gaming JUly 2015 22 Cover Story mass gaming areas in the past few months, so the gap between mass and VIP is narrowing quite quickly,” Mr McCamley says. Play is in US dollars, and commission rates are significantly higher than Macau’s 1.25% though he wouldn’t give a number. VIP betting starts at $1,000 with baccarat table differentials up to $100,000, “the highest in Vietnam,” according to Mr McCamley. The Grand works regularly with 20 junket promoters, known officially as independent tour operators or ITOs. With his extensive networks in mainland China and Macau, Chien Lee has reportedly introduced dozens of VIP acquaintances to The Grand, and from its early days, the resort has had ITOs specializing in Japanese, Korean and Viet Kieu players resident in Vietnam and overseas. “We are now looking to expand that by developing new partnerships in other markets, notably including Thailand, Japan and Taiwan,” Mr McCamley says. In an interview last October, Mr Shoemaker forecast The Grand operations would turn profitable early this year. But company executives won’t say whether that hurdle has been cleared. Mr Klebanow says a key issue, apart from the ban on local play, is that The Grand doesn’t have enough rooms to support its casino. ACDL hopes to remedy that by building the planned second tower of The Grand that would lift total keys to 1,100. Piling work was completed earlier, and contractor Coteccons, builder of the luxurious initial tower, has been signed for construction, which could be completed within 12 months of its start. ACDL has chosen a condominium model for the project that entitles investors to a number of room nights and portion of room rental income. “The reception to the opportunity to allow people in Vietnam to own a piece of the Ho Tram Strip has been welcomed by the market here, so we are committed to this model as the way forward for the next tower of The Grand,” Mr Pine says. The current phase may also include villas along The Bluffs and beach, and if the ownership format proves successful, could pave the way to financing build out of the rest of resort. Ho Tram’s investment certificate, the government authorization for the project, includes a timeframe for development. The second hotel tower is the next investment milestone, and a government progress review is due this year. Mr Pine says failure to meet investment targets wouldn’t mean forfeiting the gaming license but could lead to additional requirements for ACDL. An industry insider terms the Ho Tram case “critical” as a barometer of the government attitude toward lagging IR development. So far, Vietnam authorities have restricted actions to private pressure without taking punitive steps. GEOGRAPHICAL EDGE Ho Tram still faces the issue of distance. Road improvements have nearly halved the driving time from HCMC’s Tan Son Nhut Airport to around two hours, with more upgrades underway. The airport, a remnant of the American war effort in Vietnam, is due for replacement, with Long Thanh in Dong Nai province, an hour from Ho Tram, a potential site Even as things stand now, Mr Pine believes Ho Tram has geographical advantages over Vietnam’s other four IR sites in locations he calls “remote and underdeveloped,” such as remote Phu Quoc and Van Don island near the border with China’s Guangxi Province. To support IR development, these areas need major infrastructure improvements that, Mr Pine points out, will happen at Van Don island district Even as things stand now, Mr Pine believes Ho Tram has geographical advantages over Vietnam’s other four IR sites in locations he calls “remote and underdeveloped,” such as remote Phu Quoc and Van Don island near the border with China’s Guangxi Province.