from Gaming & Leisure Magazine
Summer 2012
A region with vibrant towns and cities, dynamic cultural and religious traditions, exotic cuisines, mountains and pristine beaches, Southeast Asia offers a diversity of experiences for the travel enthusiast. With reasonable infrastructure, destinations only hours apart by air, and some of the best hotels in the world, it’s attracting travelers in significantly growing numbers.
Southeast Asia is a relatively small geographic area including Brunei, Cambodia, Timor Leste, Indonesia, Laos, Malaysia, Myanmar, Papua New Guinea, Philippines, Singapore and Thailand. Though fragmented by diverse culture, language, religion and currencies, they do maintain a relatively strong commercial bond through the Association of Southeast Asian Nations (ASEAN).
Southeast Asia is currently experiencing rapid economic growth while at the same time showing signs of increasing inflation. In fact, Vietnam has been grappling with inflation issues for over the last year. Southeast Asian currency values have also been increasing in value, against the U.S. dollar in particular. This has mainly been due to the massive investment in the region.
All of this economic growth has resulted in something that is highly valued by the casino gaming industry: disposable income. As these economies become awash in monetary liquidity, so do the consumers. As the people become wealthier and well-informed on tourism options, their demand for casino gaming entertainment grows.
The story of Singapore as it relates to gaming is already rather well known. Both Las Vegas Sands and Genting operate in Singapore, and invested over US$5 billion each in their integrated casino resorts. Their performance has been enormous, with gross gaming revenue for the market exceeding a US$4 billion run-rate.
Two countries with upcoming five-star integrated casino resorts include Cambodia and Vietnam:
Cambodia
One of the more dynamic casino development opportunities in the region is that of Cambodia. Boasting more than 25 legal casinos in this small nation of 15 million people, Cambodia’s chief gaming market has been on tourists from the bordering countries of Thailand, Laos and Vietnam.
However, as the country continues to stabilize after decades of political chaos, casino developers are moving ahead with more ambitious integrated resorts designed to attract a broader clientele. Cambodia’s first casino resort, NagaWorld, opened in 1995 as the finest integrated casino hotel in Indochina, rivaling other top casinos in the region.
Nagaworld is found amidst the picturesque terrain of the Mekong and Tonle Sap Rivers in the vibrant Cambodian capitol of Phnom Penh, a city rich in Khmer history. According to legend, NagaWorld derived its name from the mythical fable of a 7-headed dragon or “Naga.” The majestic dragon was believed to be residing in the rivers and guarding the entrance to Phnom Penh. The tale revealed its only sighting during the appearance of a rainbow and was thus considered very fortunate. Similar to the pot of gold at the end of a rainbow, NagaWorld is likened to a promising symbol of new beginnings and prosperity.
With a multi-faceted 8-story wing dedicated to entertainment, NagaWorld guests enjoy the exquisitely themed public gaming halls, karaoke lounges, dedicated spa and gaming machines. The combined offering of more than 500 luxurious Deluxe Rooms and plush Suites in the 14-storey hotel wing provide lavish comforts and an invigorating time of discovery, where an extend stay is the norm.
Among the planned market expansion is the new Thansur Bokor Highlands Resort on Cambodia’s southern coast. The site has had its soft opening in April 2012, and is expected to officially open in mid-year. The 1,200-acre resort site is notable for its location along a cliff's edge nearly 3,600 feet above sea level. It includes a former French colonial hotel, built in 1917, that became a casino before it was abandoned during Cambodia's civil wars.
Developed by a division of Sokimex Group, the casino resort will include 418 rooms, a convention center, spa facilities and an edutainment center for children. (Sokimex Group is a Cambodian conglomerate that controls mush of the country’s oil industry). A championship golf course designed by Arnold Palmer is currently in the plans.
Despite protests from advocacy groups that worry about crime and forced relocation of residents, the Cambodian government has been approving new casino development at a rather rapid rate. Reports show that casinos generated $20 million in tax revenue last year, a 25% increase over 2010.
Casino developers have been looking intently at Sihanoukville on the southern coast, and Siem Reap, the site of Cambodia’s best known tourist attraction, the Angkor Wat temple.
Vietnam
Having a population nearing 91 million, Vietnam is one of the most populous countries in Southeast Asia, providing a unique market opportunity for both casino and tourism development. According to a report by Merrill Lynch, the country boasts one of the fastest growth rates in the region of millionaires, providing additional incentive for outside gaming and leisure investors.
Tourism statistics for the first three months (January – March 2012) indicate international arrivals reached 1,873,726, representing a 24.5% growth the same period last year. On average, statistics put the growth of tourism at 18% per year for the past few years, boosting the interest of international investors.
With quite a few years in gaming, Vietnam is a country well versed in the intricacies of the industry, as well as the competitive dynamics of the Asian region. In an effort to assure foreign gaming investors, the government is in the process of drafting a Gaming Decree that will bring clarity to the existing market structure.
The government has been considering multiple sites for large integrated casino resorts including DaNang on the central coast, Halong Bay in the north and Ho Tram in the south. At present, the MGM Grand Ho Tram is the sole site under construction, slated to open in 2013.
The first stage for the five-star MGM Grand Ho Tram will offer 541luxury guest rooms, world-class amenities, a conference centre and a spectacular gaming area. The second phase will incorporate a new tower with 549 additional guest rooms, brining the total to 1100 five-star hotel rooms.
In the high-growth Asean region, Cambodia and Vietnam are improving their status as gaming destination with the addition of world-class integrated casino resorts.
