Inside Asian Gaming

INSIDE ASIAN GAMING | August 2013 32 IN FOCUS natural beauty and a friendly population. Some observers suggest that Myanmar could eventually outshine Thailand. It’s slightly larger, more diverse and, due to the political fragmentation and insurgencies, it is not yet overrun. Thailand gets 21 million visitors a year, suggesting Myanmar could see its tourist traffic multiply over the next decade. The current target is for the country to host 7.5 million visitors by 2020. Myanmar’s transport and tourism infrastructure are a limiting factor; roads are poor, airports are too small, international air connections are limited—often provided by old clunkers—and hotels are too few, often expensive and in need of refurbishment. But money is being poured in—some from the Asian Development Bank and other mulilaterals—to address these deficiencies, in particular to improve accessibility and connectivity. Already, direct flights are available to Mandalay from Bangkok and soon direct scheduled international connections may be available to Naypyidaw, the country’s capital since 2006. The erstwhile capital, Yangon, with a population of over 4 million, is the country’s largest city and center of commerce. Dotted around the city are about 30 gaming establishments that for the most part operate under amusement licenses. While they do offer games that are strictly speaking not gambling (such as the machine where a robotic arm is used to pick up a fuzzy toy), in the back of these establishments are a wide range of gaming machines, from slots to electronic baccarat, poker and roulette machines. The amusement centers also offer bingo and pachinko. The environment is low-key and casual, with limited staff and little apparent security. The décor is decidedly minimalist—plastic chairs, old carpets and wobbly tables. The machines are also quite basic. Aristocrat slots are common, but they are circa 1980s models. Other brands include Sega, Aruze, Sigma, Cinematech, Huga, Apollo, as well as made-in-China clones and computer-based gaming applications. In some areas the gaming halls resemble Internet cafes, with banks of screens on long tables for customers. Many of the arcades feature sliding shutter doors separating the amusement and gaming areas. Borrowing from the Japanese pachinko model—where prizes are given that can then be sold back to independent vendors located nearby—the those in neighboring countries willing to cross the border to play. The government is developing a plan that will allow for the operation of a number of legal gaming establishments—potentially paving the way for world-class integrated resorts run by publicly listed international operators. The consensus among insiders is that Myanmar could develop a comprehensive gaming strategy that leverages its natural advantages to become a key regional destination of the future. The catchment area for Myanmar will be much the same as that of Cambodia: Thailand, China and Malaysia. While Vietnam lies a bit farther, Myanmar’s ascent could very well cannibalize Cambodia’s gaming operations. Big Changes Myanmar is undergoing rapid change. During military rule, the country was subject to a wide range of sanctions placed on it by Europe, the US, Canada and Australia. After reforms were initiated in 2008 and an election held in 2010, political freedom was greatly expanded, leading to the lifting of most major sanctions, including the US prohibitions against investment in and provision of financial services to the country. Myanmar has quickly become one of the mostpromisingdestinationsforinternational capital. The country is in desperate need of funding and foreign bankers see great opportunity across the board. Myanmar is rich in natural resources and has cheap, educated and productive labor. Meanwhile, it is short on manufactured goods, some of which can be produced domestically. Tourism is one of the most interesting sectors for development and foreign investment. The country is largely undiscovered by foreigners and offers a wide range of scenery and experiences, from pristine beaches in the south to alpine mountains in the north, and in between crumbling former colonial cities, historic temples, monasteries, reclining Buddhas and lakes. Furthermore, as a result of the decades of international isolation, many of the tourist sites remain unspoiled. Tourist arrivals hit 1.05 million in 2012, up from 816,000 a year earlier, and are expected grow over the next few years. The hope is that Myanmar could one day become the next Thailand. There are clear parallels. It is an overwhelmingly Buddhist country (90% of the population), blessed with Casinos are low-key and casual, with limited staff and little apparent security. The décor is decidedly minimalist—plastic chairs, old carpets and wobbly tables.