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The future for Asia’s IRs: More, bigger and better amenities Asia’s land-based sector continues to attract strong investor interest, both from within and outside of the region, with new markets and opportunities emerging at a breakneck pace.
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n this edition of Asia Gaming Briefings, our focus piece takes a broader brush look at some of the implications of this proliferation of new properties and potential considerations for investors. For example, there has been considerable debate over whether bigger is better. As operators jockey for a position in Japan, investment pledges for a coveted license are running at about $10 billion, while around the region, from Saipan, to Singapore, to Vietnam, the mega resort seems to be the preferred operating model. We ask why and more importantly, will this trend continue as the market develops. In another of our featured items, we consider the merits of the various jurisdictions. Does Macau risk losing any of its clients to Japan, or will the Philippines take a greater slice of Singapore’s pie? The article considers how much more expansion the Asian market can support, while looking at which locations are most at risk from cannibalization. As new resorts are built out, operators are also faced with the question as to what will appeal to clients in terms of non-gaming amenities. As they
Asia Gaming Briefings | August 2018
try to reach a broader and perhaps younger audience, what is going to bring in the crowds? In Las Vegas, it has been the club scene that has seen stellar success and there are signs now that operators in Asia are beginning to import that model. Marina Bay Sands is bringing in the world-renowned Marquee Club from next year and Melco Resorts & Entertainment hosts the Pacha brand. Our piece looks at the potential for nightclubs in the region and what ingredients need to be thrown into the mix to create a must-see destination. Lastly, no amount of investment in glitzy facilities is worth the money if you can’t keep the customers coming back for more. And, at the end of the day, one of the key differentiating factors is likely to be customer service. Marketing expert Sudhir Kale examines how operators need to drive employee engagement to ensure they are reaching their full potential when it comes to welcoming clients. He argues that simply raising wages, or offering more perks, is not the answer to ensuring your staff buys wholeheartedly into the project.
