Integrated resorts in Asia seek out the region’s middle classes to offset the effect of China’s anti-graft policy that has hit their gaming tables  

Universal Studios Japan’s new Wizarding World of Harry Potter is an attraction for Asian families

With most IRs in Asia-Pacific geared towards foreign tourists, especially China’s booming middle class, it is not surprising that the anti-graft crackdown by the Chinese government has had a cooling effect on casinos across the region, with Macau the most affected.

Casino revenue in the former Portuguese colony declined for 10 consecutive months to MOP21.5 billion (US$2.7 billion) in March, down from MOP35.4 billion a year earlier, according to data released by Macau’s Gaming Inspection and Coordination Bureau.

“There is still a huge market outside of China that we have yet to tap into,” said Irene Wong, executive director of sales & guest services and hotel operations, MGM Macau. She added that the company has embarked on a strategy to broaden its customer base by offering diversified non-gaming experiences to “accommodate the transformation that Macau is going through”.

Industry players also urge Macau’s IRs to adopt a different game plan to stay competitive. EGL Tours Macau’s general manager, Sabina Iong, said: “As Chinese traffic has dropped recently, (Macau) hotels have now switched to wooing markets like Taiwan and South Korea with attractive hotel rates. IRs should boost (marketing) efforts in South-east Asia as (Macau’s) rate are reasonable and no longer jacked up by the Chinese.”

The Chinese visitor slump has also hit the Philippines, although the business models of Philippine IRs have made them less reliant on the China market than their peers.

“We have to admit we’re all looking forward to getting a good slice of the outbound market from China…we haven’t seen as many Chinese casino players as we would like,” said Francis Hernando, vice president for gaming licensing and development at Philippine Amusement and Gaming Corporation. “But we are not looking at players only; about 90 per cent of (IR) space is not devoted to gaming.”

Mint Leong, managing director at Sunflower Holidays, a Malaysian inbound firm specialising in the China market, said that only a small percentage of her Chinese clients visit Resort World Genting, the only IR in Malaysia with casinos, attracted by curiosity rather than the desire to gamble.

She said: “Most first-time visitors want to see what Genting is about. For repeat visitors to Malaysia, Genting is no longer a must-visit destination, thus the Chinese government’s anti-gambling declaration will have no impact on demand for the resort.”

Meanwhile, India outbound players are witnessing a good demand for IRs in destinations like Macau, Singapore, Malaysia, Thailand and the Maldives.

“Indians looking to indulge in casinos used to head to Goa and Nepal. IRs in Macau like The Venetian Macao opened up the concept of multi-dimensional resorts in India. However, IRs in other destinations like Marina Bay Sands in Singapore are also finding many takers in the Indian market. Segments including leisure, MICE and honeymooners are fuelling the demand for IRs,” said Ashutosh Rawal, general manager, Fun Holidays.

“A lot of these IRs are now investing in the Indian market through activities like roadshows, which have enhanced the trade’s knowledge of these products and the promotion of IRs among their clients,” said Rajji Rai, chairman, Uniglobe Swiftravel.

Several consultants share that the myriad options offered under one roof has been a critical reason why Indian tourists are attracted to IRs.

“Resorts World Sentosa in Singapore, Genting Highlands in Malaysia and Laguna Phuket in Thailand have emerged  as major attractions for Indian travellers. Bintan Resorts in Indonesia is also growing in demand – we are seeing a year-on-year growth of six-10 per cent, said Rajesh Bhalla, manager sales-India, GTMC.

While IRs’ multiple activities are a pull factor for the Indian market, theme parks are a stronger draw for Indonesian outbound travellers, especially among families with children during school holidays and the Lebaran period.

Agustinus Pake Seko, director of Bayu Buana Travel Services, said: “Parents nowadays listen to their children when it comes to picking a destination for their holidays, therefore theme parks play an important role in this.”

Ivone Valentine, tour counter supervisor of Dwidaya Tour, said: “We take into consideration theme parks when creating holiday season packages for families.”

Having established names like Resorts World, Disneyland and Universal Studios in a destination or the addition of well-known characters into theme parks also play a significant role in promoting an IR.

Agustinus said: “The opening of the Wizarding World of Harry Potter in Universal Studio Japan, for example, has managed to attract both new and repeat family travellers to the country.”

This article was first published in TTG Asia, April 10, 2015 issue, on page 15. To read more, please view our digital edition or click here to subscribe

Additional reporting by Mimi Hudoyo, S Puvaneswary and Marianne Carandang

It’s full-fledged war in Asia’s integrated resort scene as new players get into the game and existing properties up the ante with fresh attractions

From left: Home to ritzy casinos and big hotels, Macau is often dubbed the ‘Las Vegas of the East’; Nickelodeon Lost Lagoon at Sunway Lagoon

Despite the growing number of rivals in the region, Macau, the world’s biggest gaming destination, is now gearing up for another wave of integrated resort (IR) openings this year, with most of the new additions emphasising non-gaming elements developed by existing players.

This May, Galaxy Entertainment Group will launch the expansion of flagship property Galaxy Macau and the new Broadway at Galaxy Macau, while Melco Crown Entertainment is set to open Studio City, its second IR in Macau after City of Dreams, in 3Q2015 (see page 24).

A Melco Crown Entertainment spokesman commented: “The Hollywood-inspired Studio City is designed to capture the increasingly important mass market segment. The innovative offerings will achieve diversification and cater to a broad range of customers in Macau.”

Welcoming the additions to Macau’s IR landscape, Gray Line Tours, managing director, Andy Wu, said: “With more new players, we don’t lose customers to other destinations that have IRs. These new developments definitely help boost Macau’s appeal because they bring new elements that enrich the city’s offerings. This may generate new source markets as well as win back the Hong Kong market as they always look for new stuff.”

The Philippines has also mounted a serious challenge with a clutch of new IRs along Manila Bay.

Solaire Resort & Casino completed its Phase 1A expansion last November to unveil a new Sky Tower with a 312-suite hotel, 10 gaming salons, a 1,760-seat theatre and a 2,000m2 meeting facility.

In February, Melco Crown Entertainment launched the US$1.3 billion City of Dreams Manila with 930 rooms, 380 gaming tables, 1,700 slot games and 1,700 electronic games.

Melco will tap its Macau VIP database and a “net of prospects” in South-east Asia and Australia, said co-chair and CEO, Lawrence Ho.

“Ultimately, what we think will underpin this property is first and foremost the domestic market,” he added.

Open since 2009, Resorts World Manila will add 227 rooms and a grand ballroom at Marriott Hotel Manila in its phase-two expansion, plus the extension of Maxims Hotel and the construction of Hilton Manila and Sheraton Hotel Manila in its third phase.

Meanwhile, sister property Resorts World Bayshore is scheduled to open in 2018 to feature 1,200-1,500 keys across four brands (Genting Grand, Crockfords, Westin and Okura).

In Malaysia, Resorts World Genting (RWG) also announced in 4Q2013 a RM5 billion (US$1.4 billion) investment over 10 years to enhance the 50-year-old hilltop gaming resort, a reflection of the diversification drive that regional IRs are undertaking to broaden their appeal and market reach.

In the first phase of the revamp, 1,286 rooms will be added to First World Hotel to bring its inventory to 7,345 rooms. Supply at RWG stands at 9,858 rooms, comprising budget, four-star, five-star and two luxury properties, Crockfords and Maxims.

RWG will also develop Twentieth Century Fox World, a 10.1ha theme park featuring 25 rides and attractions from Fox’s films including Ice Age, Rio, Alien and Night at the Museum. A stone’s throw away, Sky Avenue will comprise 165 retail and F&B outlets and a new cable car station.

Sunway Group has entered a strategic collaboration with Viacom International Media Networks Asia in April 2014 to introduce Nickelodeon Lost Lagoon at Sunway Lagoon. Due to debut in mid-2015, the RM100 million park will mark Asia’s first Nickelodeon-branded destination starring SpongeBob SquarePants, Dora the Explorer and Teenage Mutant Ninja Turtles.

Commenting on the evolving IR scene in Malaysia, Sunway Lagoon general manager, Sean Choo, said: “It is crucial to perform upgrades within the theme park every now and then…The fact that Sunway Lagoon also introduces new rides and thrills every year to continue attracting visitors, not just locally but on an international level, is a clear indication of how competitive the industry has become.”

Arokia Das, senior manager at Luxury Tours Malaysia, said the closure of Genting Outdoor Theme Park in 2013 had resulted in a significant drop in business from the Indian sub-continent, Thailand and Vietnam, so he hopes the new attractions will enable Malaysia to “compete with the likes of Universal Studios Singapore and Tokyo Disneyland”.

South of Singapore, the 1,300ha mega IR development Lagoi Bay has elevated the allure of Bintan island with its highly anticipated crop of resorts and lifestyle attractions.

The 30-key Sanchaya luxury retreat officially launched in January, while the 196-room Swiss-Belhotel Lagoi Bay and Plaza Lagoi shopping mall opened in March. A 100-year old museum ship turned hotel, Doulos Phos, is expected to open this Christmas, following the launch of Bintan Marketplace in 2H2015.

Bintan Resorts also expects to open its own international airport in early 2017.

When asked if Singapore’s high-profile IRs are rivals to Bintan, Bintan Resorts International director of marketing, Asad Shiraz, said: “Bintan prefers not to compete with Singapore, as Bintan was conceived to complement the offerings of Singapore without obvious overlaps or duplication.

“Singapore is a modern, built-up metropolis with exciting events, shopping and man-made attractions; Bintan, on the other hand, is a tranquil tropical island getaway,” he added.

Furthermore, Bintan can be packaged as a twin destination with Singapore to offer “greater dimension, depth and variety”, Asad opined.

So concurred CEO of Singapore-based GTMC Travel, Samson Tan, who has just started focusing on the India & China markets: “(Bintan) will be an option to combine with Singapore as (the demand for) mono Singapore from the region seems to have slowed down. We need to make transfers (immigration and transport) from Singapore to Bintan an even smoother process in order to increase more visitors.”

Bintan Resorts earlier partnered the Changi Airport Group to emphasise the twin-destination concept, especially to the India market. Visitors from India to Bintan Resorts can now enjoy a S$30 (US$22) voucher while on transit at Changi Airport, along with a free Mangrove Discovery Tour.

What else is on the cards

Australia Aquis Great Barrier Reef Resort The yet-to-be-constructed A$8 billion (US$6 billion) Aquis Great Barrier Reef Resort is set to be a game changer for Cairns’ tourism industry. To be located on 314ha of land north of Cairns near the Great Barrier Reef, this mega-resort and casino will become the largest in the world with 7,500 rooms across eight luxury hotels. It opens in 2018.

South Korea Incheon Airport project To be modelled after Resorts World Singapore, Incheon Airport has announced a tourism project to build a new foreigner-only casino, shopping mall and hotels to attract Chinese visitors by taking advantage of the city’s geographical proximity to Beijing and Shanghai.

Set to be completed by 2019, the Incheon Airport project is expected to cost between five to six trillion won (US$4.5-5.4 billion) and will be developed on a 327ha plot of vacant land near the second passenger terminal. Three other IRs are also being built near the airport as part of the South Korean government’s plans to imitate Macau’s cluster of IRs.

Macau The Parisian Macao The US$2.7 billion Parisian Macao (left)is expected to open in 2016 and feature more than 3,000 hotel rooms and suites, some 45,500m2 of retail space, F&B offerings, meeting and convention facilities, and a half-sized replica of the Eiffel Tower.

Australia Queen’s Wharf Brisbane The city of Brisbane wants to attract Asia-Pacific’s gamblers with a ‘Singapore-style’ IR, which will be constructed on prime waterfront land at the Queen’s Wharf precinct to the tune of A$1 billion. The resort, which Queensland’s department of state development said draws inspiration from Singapore’s Marina Bay Sands, will include luxury hotels, function centres, F&B outlets, residential units and a pedestrian bridge, as well as gaming facilities.

This article was first published in TTG Asia, April 10, 2015 issue, on page 12. To read more, please view our digital edition or click here to subscribe.

Additional reporting from Paige Lee Pei Qi, Prudence Lui and Marianne Carandang