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MACAU BUSINESS
(ACDL). Its Chief Executive Officer, David
Subotic, spoke to Macau Business about the
project and its implications for Macau.
Straight talker
First off, Subotic is nothing if not direct:
“Macau is Atlantic City without a beach,’’ was
his opening gambit. The Canadian CEO also
speaks in precise terms when talking about the
differences between the two destinations.
“Vietnam is culturally beautiful, the people
are pleasant, it is a different place to visit, the
air is fresh and clean – you can breathe – all
these are big components. In South East Asia I
want a destination I can go to and have all
these types of amenities and at the same time
be in a great place. Wouldn’t that be nice?”
Nice enough perhaps for Macau’s policy
makers sit up and take notice of the challenges
the Ho Tram Strip could pose to the city’s place
as top gaming dog in the East.
Even so, there’s a reluctance to use the “C’’
word. Subotic prefers an American parallel: “I
think it is just a complement. When Las Vegas
and Atlantic City were the only legal gaming Both locals and foreigners are expected to [Vietnamese] government has been very
casino jurisdictions in the United States, make up the Ho Tram customer base. Despite supportive, and took time and effort to
people were afraid of Mississippi opening up, the Vietnamese population being barred from understand the gaming and the integrated resort
or Illinois and the Indian gaming, but those playing the tables, the non-gaming facets of business, so I am very, very pleased with the level
markets are still performing very well. Las Vegas the operation will be open to them. of support in these difficult financial times.”
was performing extremely well and the other “There are lots of things Vietnamese visitors MGM Mirage was the first international
markets were complementing it,” he says. can use. They can go to the beaches, use the development company to join the project, by
ACDL’s CEO sees no reason for concern: convention business facilities, the restaurants way of managing the first of its five planned
“There is an extreme lack of supply in this or the wedding chapels, to name a few,” says integrated resorts.
region for integrated resorts. I believe we could Subotic. Steelman Partners, one of Las Vegas’ main
build ten Ho Tram Strips in the area, in one architectural companies, was charged with
day, and we’ll have people (to use them). There Tapping Macau talent coming up with a design concept for the Ho
is just a lot of people. The project, in the southern Vietnamese Tram Strip and its two kilometers of sandy
“As the South East Asian middle class grows, I province of Ba Ria Vong Tang not far from the beaches.
think there will much more demand and the country’s biggest city Ho Chi Minh – Subotic appears very proud of the synergies
supply will still be low. There is no way the population 8 million – has tremendous he managed to achieve: “We chose MGM
market will be saturated in the next five years,” potential to attract visitors both and because of their properties and resorts. They
says Subotic. professionals to the gaming workforce. have a convention business, they know how to
Subotic says: “I am going to be within a two entertain their people and know how to handle
Luring VIPs hour drive from a city of 8 million people. the gaming business and have an enormous
On the possibility VIP gamblers could be There are 20 million people within a five-hour database of people,’’ he says.
lured to Vietnam by junkets, Subotic says: drive and they don’t have anything of our type Discussions are being held with other
“Sure, they can cross [from Macau to Ho Tram]. of quality resort. There are no restrictions to potential partners and we asked if any of those
But I think it is more beneficial to MGM. I will employ expatriates, but our company policy is involved in the Singapore gaming projects
have more of a database in Vietnam to help to employ and teach as many locals as possible. might have a shot: “There are two other groups
them put business into Macau. We would say We believe that over 90 per cent of our out there in the gaming space that we would
this relationship is the best thing that ever employees are going to be locals.” feel comfortable with, and Harrods and
happened to Macau.” Despite the intention to hire Vietnamese Genting are neither of them.”
The junket business forms 70 percent of people, the recent wave of layoffs in Macau
Macau’s gaming revenues and, of course, it is a represents opportunities for Ho Tram. Many of
target market for Ho Tram: “People might like those made redundant by Macau gaming
Note: Given the recent news about MGM Mirage being
diversity. Eventually the junket business is operators were angry at the way they were
on the course to default on its loans, immediately before
about people feeling comfortable. Just like in treated and have no plans to return once the
going to print and following an inquiry by Macau
North America where we can offer a higher economy recovers.
Business, MGM Mirage Global Gaming Development
president Lloyd C. Nathan assured us MGM Mirage is
commission to junket operators, we also offer
an alternative,” he says. Cash and comfort
commited with Asian Coast Development Limited
(ACDL) to, in Mr. Nathan’s words, “bring this exciting
And in Vietnam, junket commissions are tax Subotic is very confident with the US$4 project to fruition”.
deductible. billion investment in Vietnam: “The
18 APRIL 2009
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