DATELINE ASIA february2011
GENTING MALAYSIA EXPLORING VIETNAM
G Macau Sets Record
Huge revenue increase cements SAR’s status as gaming leader
C
Details of Genting Malaysia $4 billion resort development in Vietnam yet to be confirmed
enting Malaysia has acknowledged that it is working with a partner to explore opportunities
in the leisure, hospitality and entertainment sector of Vietnam. The somewhat vague response came in reply to a
“verbal query” from exchange holding company Bursa Malaysia, which in turn was responding to a December 20 report in the EdgeMalaysia, which read:
“The next destination is likely Vietnam’s ancient
city of Hoi An. Vietnam’s online newspaper VnExpress says a joint venture formed by the Genting group and local fund manager VinaCapital has obtained approval from the central government for a US$4 billion casino resort project in Hoi An city. The news portal reports that the large-scale project features a five-star hotel, resort villas and a casino.” In a statement to Bursa Malaysia, Genting
Genting Malaysia, owner of Genting Highlands, is eyeing the Quang Nam province.
Malaysia said, “As part of its business strategy, the company continually evaluates opportunities to expand in the leisure, hospitality and entertainment sector. “The company has been collaborating with a
partner for purposes of exploring such opportunities in Vietnam. Pending the outcome of such collabo- ration activities and the execution of the final defin- itive agreements, the company will make the neces- sary announcements in due course.” Vietnam Business News reported late last year
that the $4 billion collaboration between Genting Malaysia and local real estate investor VinaCapital Group will be located within the 125-square-mile Chu Lai Open Economic Zone in Quang Nam province.
PHILIPPINE PARTNERS Former Galaxy exec to consult for Manila project
T
he Belle Corp. and Leisure Resources World Corp. (LRWC), owners of a
potential $1 billion casino resort on the shores of Manila Bay in the Philippines, last month said they had chosen Asia Pacific Gaming (APG) as the management team to operate the gaming at the property. The development will be part of a four-
casino complex called Entertainment City that has been put together by the Philippines Amusement and Gaming Corp. (PAGCOR). Others committed to build are Aruze, with leader Kazuo Okada, a partner in Wynn Resorts, and Genting bhd of Malaysia, as well as another large Philippine company. Negros Occidental Rep. Alfredo “Albee”
Benitez, majority owner and former president of LRWC, said the group had not decided whether to make APG a strategic partner or simply hire the company to operate the gam- ing at the Belle Grande Manila Bay. The first
8
phase of the proper- ty may open by the fourth quarter of 2011. It would seem
that the more involvement from APG the better. APG leader Ciran Carruthers has vast experience in Australia and Macau. He was most recently the chief operat- ing officer of Galaxy Entertainment, where he got credit for a $600 million bond offering, and helped Galaxy to become the first Asian gaming company to get listed on the Hong Kong Stock Exchange. The Belle Grande Manila Bay will include
Ciran Carruthers
two hotel towers, each containing 500 hotel rooms. The first phase of the property will include 100 VIP suites. The casino will have 1,500 slot machines and 250 tables.
asinos in Macau garnered gross gaming revenues in 2010 of almost US$24 billion,
almost four times more than the SAR’s closest competitor, the casinos of the Las Vegas Strip. The figure was 58 percent more than the Macau casinos won in 2009. Revenues have consistently climbed since Macau opened up gaming in 2002, but the increase in 2009 was just a modest 10 percent over 2008. Macau casinos overtookNevada casinos in revenue production in 2007. December revenues were up 66 percent
over the same month in 2009, surprising some gaming analysts. “We were not expecting it to be so strong
in December,” CLSA’s Aaron Fischer said. “We thought it would fall off a bit in the last few weeks of the year, but it didn’t. Historically, Christmas is not a big gambling time.” Market share remained steady compared
to November, when Wynn Macau overtook Sands China for second place. Stanley Ho’s SJM claimed the top spot with a 30 percent market share. Wynn came in at 17 percent, followed by Sands China at 16.4 percent, Melco Crown at 14.5 percent, MGM Macau at 11.7 percent and Galaxy Entertainment with 10 percent.
Bet & Fly Casino proposed for South Korea’s Incheon Airport
A
n unidentified U.S. company under control of a Japanese majority shareholder is reportedly hop-
ing to invest in a casino hotel complex next to Incheon International Airport in South Korea. The Korea Times reports that though unconfirmed, the invest-
ment could be between $500 million and $2.5 billion. The site is said to be 3.3 million square meters, about 815 acres. The Times quoted an unnamed director general at the
Ministry of Knowledge Economy who said, “It is true that a U.S. entity paid a visit to us. We had a meeting with them late last month, though we have yet to reach any specific agreement.” The director general said, “Officials of the firm intend to fun-
nel quite a lot of money for the project of building a complex on Yeongjong Island. But, as you know, we don’t know anything for sure before we strike a deal when it comes to foreign investments.” The airport has sought a casino since opening in 2000. In the
past there have been investors interested in operating a casino inside the airport, for use by transiting passengers. However, research indicated such a casino would produce only around $5 million a year.
Global Gaming Business • February 2011
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