Inside Asian Gaming

inside asian gaming October 2014 34 More specifically, you’ll be bringing in Iao Kun’s players? I want to answer you because everybody asks me that. Unfortunately, I cannot answer because of the dual listing, that process. We’re in a quiet period. But I would use my own resources, my network, not only Iao Kun but other junkets I know in Macau. Also my hotel chain. In 7 Days Inn we have 100 million club members, bigger than Vietnam’s entire population. You see that as a potential feeder market? Absolutely. We are exploiting how to use my network in China and some other travel- related networks to push the tourists to Ho Tram. Absolutely. Do you see the interest from Chinese players? It seems they’re more willing these days, given recent events in China, to explore the gaming landscape beyond Macau. Certainly we’re seeing the impact on the Las Vegas Strip. Are they becoming a similar force elsewhere in Asia? What I see the last couple of years is the VIP industry is looking beyond Macau. A lot of VIP operators are looking beyond Macau. I see people looking at Australia, the Philippines, South Korea, Vietnam—yes, even the US. I think people realize Macau is the main base, but they look at it now as more spread out across Asia and North America. I think that’s the right way to do it. ACDL doesn’t report publicly, of course, so we’ve all been somewhat in the dark, one year in, about the operation. We are getting really in shape now. We are in transition, from nothing, just opening, to starting to build up a customer base. You know, the hotel on weekends is almost 100% occupied. It’s a mix of tourists and locals from Vietnam, from Ho Chi Minh. Where are the tourists coming from? China, Korea, Japan, you know, pan-Asia. You’re transporting them in from Ho Chi Minh? That’s correct. We have bus service. A transportation service. When they come in we have a service there to provide them. What’s the ratio of VIP to mass market? I would say, right now, 50-50. We’ve created an international marketing department, and we have personnel on the ground in Macau and personnel on the ground in Guangzhou, Shanghai, Beijing, South Korea, you know, the pan-Asia markets. So we are building up the foundation. How far along is the second hotel tower? We are on the way. It is already started, the pilings, those things, and we are discussing now an appropriate time to start construction. Could be early next year, this year, it depends. We are working on it. Will it include gaming? This is Phase 1a. The gaming is already there. When Phase 2 opens there will be extra tables. But 1a, the second tower, is not going to have gaming. So there will be a next phase? A future phase. When we build it. And we will have more tables. On the gaming side, certainly you’ve got plenty of statutory room to expand. Exactly. To 180 tables. Now we have 90 and 1,000 slots. So for Phase 2 we can add 90 more tables and 1,000 more slot machines. For now, with Phase 1a, what other amenities and attractions are contemplated? We are at the planning stage. We have not finalized anything yet. We have some different ideas. We hope to include some excitement there. We are working on it. Insights “What I see the last couple of years is the VIP industry is looking beyond Macau. I see people looking at Australia, the Philippines, South Korea, Vietnam—yes, even the US. I think people realize Macau is the main base, but they look at it now as more spread out. I think that’s the right way to do it.”