Inside Asian Gaming

inside asian gaming December 2015 10 Cover Story public as well as members, with a total investment in excess of US$100 million. There’s a 66 room hotel plus 115 villa and townhouse rental units, with plans to expand to 1,000 villas plus a high rise hotel with 2,000 rooms. The water park has theme areas, slides, a wave pool and lazy river ride. Other activities include sports such as tennis and basketball, a spa, a dozen F&B options, banquet and meeting facilities, plus a nine hole par-three golf course. Fontana’s adjacent golf club has two 18 hole courses designed to appeal to Koreans, the Philippines’ largest visitor group and a significant resident minority. Jimei Chairman Jack Lam is an avid golfer and tournaments are a regular feature. The casino has about 150 tables and a like number of gaming machines. Fontana members can bring up to two guests to the casino but its focus remains on overseas VIPs. Macau junkets besides Jimei regularly provide players. Gaming taxes are low, so commissions are well above Macau’s 1.25% cap. Under its license, Fontana pays a 10% fee to Pagcor on mass gross gaming revenue and 10% on net VIP win after commissions. Jimei also continues operating as a junket promoter at other Philippine properties, including Solaire Resort and Casino in Manila and Fort Ilocandia Resort Hotel on the beach in northern Luzon. “Fontana’s success owes more to Dr Lam, his vision as well as “We are all waiting for economic recovery in the mainland” – Alvin Chau Suncity Group Chairman Alvin Chau wants to take Macau’s leading junket promoter to the world, both in VIP rooms and as a resort investor and owner. In his interview with Inside Asian Gaming Editor at Large Muhammad Cohen excerpted here, Mr Chau wouldn’t discuss specifics of Suncity’s investment in Vietnam’s Hoi An South integrated resort project, but shared his views on the state of Macau gaming and his vision for Suncity. IAG: How do you see the current junket situation in Macau? Alvin Chau: I have great confidence since we have 1.3 billion people in China as the foundation of the market. The junket business in Macau is currently affected by the economy in mainland China. Every business has its ups and downs. Because everything has happened all at once – the slowdown of the Chinese economy as well as the policy adjustment – the junket business in Macau declined quickly and people haven’t had time to adapt. I think this is a normal adjustment for the business. We are all waiting for economic recovery in the mainland. IAG: Do you think Macau’s market changes are permanent or temporary? For example, Studio City opened with zero VIP tables. Could you imagine that happening five years ago? AC: It’s just a matter of the government’s table distribution – delaying the distribution of VIP tables until next year. It is known that their license for VIP rooms hasn’t started. [Macau gaming regulator DICJ did not respond to IAG’s request for clarification or comment on Mr Chau’s assertion.] I don’t believe a casino hotel can be complete without VIP tables. Overall, you won’t achieve diversified development by reducing the number of VIP rooms. IAG: Are you happy to see a resort like Studio City that has a so many non-gaming attractions as opposed to just building big casino hotels with restaurants? AC: Of course I’m happy to see those new entertainment facilities. This is a business where people are free to determine their own business development. When the market gets up to a certain size with more hotels, hotel rooms and tables, competition increases. People are not satisfied with large gaming revenue only; therefore diverse products will keep appearing. IAG: Do you think people need to view Macau more as a tourist destination rather than a gaming destination? AC: Products in the market will become more diverse. Gaming revenue will still account for the lion’s share, but the reasons for visiting Macau will become more varied.