Inside Asian Gaming

March 2012 | INSIDE ASIAN GAMING 7 Jewellery, watches and art sales trends in Japan 2008-2011 Comparison of attendees per square metre convention space in Tokyo, Las Vegas and Hong Kong Extract from CLSA survey of consumer opinion on IRs in Japan attendees [annually in Tokyo], there are roughly eight attendees per square metre of convention space compared to four per square metre in Las Vegas and Hong Kong (which is likely to be more space constrained than Tokyo),” say the authors. “As Japan looks to reignite its economy, the administration is likely warming up to the idea of introducing a gaming bill. Further, based on our proprietary survey gauging the public’s opinion of IRs, 43% of 600 respondents stated they are open to a large IR in Japan and only 20% are opposed, while over 50%would visit the establishment despite the majority (72%) having never engaged in pachinkos or pachislots .” Summary CLSA/Credit Agricole Securities (USA) say in the executive summary to the report: “The real appeal of IRs, we argue, lies in their diverse offerings that emphasise non-gaming amenities, such as luxury accommodations, convention and meeting facilities, retail space, fine dining and theme parks. Apart from the huge domestic potential for the gaming market, Japan can also seize the opportunity to transform the social landscape and reinvigorate the service industry to better capitalise on pent- up demand from Chinese tourists. “It’s still too early to determine which operator would receive the licence to develop an IR in Japan. Nevertheless, we run various scenario analyses that suggest Japan’s IR opportunity could be significant for operators such as Las Vegas Sands, MGM, Wynn and Genting Singapore, potentially adding 20-115% to Ebitda and offering 15- 100% upside to current share prices.” Source: Japan Department Stores Association Source: Tokyo Convention & Visitors Bureau, Las Vegas Convention and Visitors Authority, Hong Kong Tourism Board Source: Credit Agricole Securities (USA) & Visitors Bureau, Tokyo should see 1.6 million convention attendees in 2012. This is larger than other large cities in Asia, such as Hong Kong, which has seen roughly 1.3m attendees,” says the report. “Tokyo will have several big conventions this year including the New Environment Exposition (N-EXPO), which is expected to have 200,000 attendees (the convention attracted 180,700 in 2008, its record so far). This wouldmake it larger than the Consumer Electronics Show (CES) in Las Vegas, which recently broke its record attendance in 2012 with 153,000 attendees. “Despite the number of attendees, we believe Tokyo could use more convention centres. “With an estimated 1.6m convention Cover Story