Inside Asian Gaming

inside asian gaming June 2014 8 to change perceptions a little bit too. And people are going to go, “Hey, that’s a little more mainstream than I thought it was.” And Kelvin Tan’s done a fantastic job for Melco Crown. So I think the junkets are going to treat it a little more seriously. And if they like the experience then that helps everyone down here. You know, these guys are all trying to diversify internationally now. Sun City’s in something like 15 countries in 22 locations now. They’re always looking for opportunities abroad. What of the doubts out there about Manila’s viability as a VIP destination? What concerns the big junket operators, some of them, naturally, is safety. We’re covering initiatives on that not only in terms of our site but as part of the Entertainment City conglomerate of IRs. There are a number of initiatives that are under discussion with Solaire and City of Dreams. But we’re looking to be a one- stop shop. That’s sort of our solution to that issue. We will pick up people, we’ll take them through the VIP line at the airport, pick them up in a limousine, we’ll bring them down to our resort. There’s no reason to go anywhere else but our resort while they stay with us. We’ll have a full entertainment offering, a wide array of food and beverage offerings. We’re going to have a fantastic spa facility. Retail, when Phase 2 opens, it’s going to be over 70,000 square meters. So we think we’ve got everything that people will need. Are you looking at commission-based compensation on VIP or revenue share? In terms of junket commission rates, with our tax structure we can certainly be more than competitive with Macau. We’d probably prefer revenue share. Reduces the volatility of the business. But we’re looking at all options. That’s something we’re going to have conversations about as well. We’ll be competitive with the programs, we’ll offer commission, we’ll offer revenue share, Hong Kong dollars. And I don’t know what the competition’s done, but City of Dreams certainly has a fantastic reputation, and I think that’s going to help when they open. But I think our portfolio of restaurants, suites, the room offering is amazing, the retail, the entertainment, the nightclub, the beach club, the spa—really, I’m quietly confident that our offering is going to surpass everything else that is going to be in the market. And I think ultimately when people have started coming into Manila they’re going to look at our property and, you know, I’ll let them decide where they prefer to stay. Locals are going to be a key element of our business model too. Not just for the revenue but for creating the excitement and the throb within the casino that everyone likes, even the high rollers. They don’t want to play in an empty, dull casino, they want to be somewhere where’s there’s action and things are going on. I think our casino’s going to provide a little more atmosphere than the others. And I think that the locals will gravitate toward that. The strategy then is as much about transforming images or perceptions of Manila as anything else, which has been the goal of Entertainment City from the start. It is. Absolutely. I mean, your perception of Manila from two years ago, my perception two years ago, I wouldn’t have gone there. And I went there in January last year, had a look, I’m like, “Hey, this isn’t that bad at all.” All the vendors and stuff used to go, “Oh, God, I hate that place!” They used to have to stay in Chinatown because the PAGCOR offices were there, and they never really went down to Makati, Greenbelt, Fort Bonifacio. It’s a nice place, it really is. I think more and more people are discovering “He’s got 1,000 hotel rooms in Phase 1, a phenomenal portfolio, starts at 60 square meters, then you go up into 100 square meters, then you’re into 200, 300, 450, 500, 600-square- meter suites in the tower. Then you’ve got the villas, which are over 1,000 square meters. An incredible portfolio of rooms.” The domed Megu Beach Club at Manila Bay Resorts—No one has done anything like it, says Matt Hurst. Cover Story