Inside Asian Gaming

inside asian gaming June 2016 20 Feature In Focus “The biggest single difference is that they’re not in urban centers but recreation destinations,” he explains. Ideally, these IRs are part of an integrated effort with the host community to increase tourism. His examples of IR 3.1 include The Grand Ho Tram, some two hours from Ho Chi Minh City on the best beach closest to Vietnam’s commercial capital; Best Sunshine’s forthcoming Grand Mariana in Saipan which is more than four hours flight from the closest major cities in Japan, Korea and China but also a world apart with clear water, blue skies and numerous golf courses; and Tony Fung’s proposed Aquis resort near Australia’s Great Barrier Reef. “REAL” RESORTS NOT MACAU IR 3.1 also represents a return to “a real resort” with a casino, rather than a casino with a resort, Mr Rittvo says. Although Best Sunshine and Aquis have bandied around total development costs in the US$5 to $7 billion range, he says IR 3.1 properties will be smaller, at least initially, with development costs below US$2 billion. “They will not substitute for Singapore or Macau,” he stresses, “but [players] can go one or two times a year.” YWS Design and Architecture CEO Tom Wucherer agrees, stating that, “Consumers are moving away from mega resorts. New IRs must include culturally authentic attractions and stories, allow for rapid consumption of multiple experiences and promote interaction and exclusivity.” They allow customers “to be part of a bigger picture, but experience it on their own terms.” Gaming will remain the anchor, but it needs to be integrated with its arena and food street, shifted the property from IR 2.0 to 3.0. It remains to be seen what segments the upcoming Cotai resorts will target, though the authorities’ preference is clear. Mr Rittvo’s next evolutionary step, IR 3.1, targets the emerging middle class in China and across Asia seeking recreational and gaming entertainment, with space for VIP gamers. The Venetian and Sands Cotai Central are examples of IR 2.0 properties “The new IR is a market-driven leisure and entertainment district … although gambling continues to lead revenue in Asian markets, it would be a mistake to ignore consumer trends which point to the importance of diverse entertainment experiences for sustainable, healthy IRs of the future.”