IAG December 2015

Cover Story
public as well as members, with a total investment in excess of
US$100 million. There’s a 66 room hotel plus 115 villa and townhouse
rental units, with plans to expand to 1,000 villas plus a high rise hotel
with 2,000 rooms. The water park has theme areas, slides, a wave
pool and lazy river ride. Other activities include sports such as tennis
and basketball, a spa, a dozen F&B options, banquet and meeting
facilities, plus a nine hole par-three golf course. Fontana’s adjacent
golf club has two 18 hole courses designed to appeal to Koreans, the
Philippines’ largest visitor group and a significant resident minority.
Jimei Chairman Jack Lam is an avid golfer and tournaments are a
regular feature.
The casino has about 150 tables and a like number of gaming
machines. Fontana members can bring up to two guests to the casino
but its focus remains on overseas VIPs. Macau junkets besides Jimei
regularly provide players. Gaming taxes are low, so commissions are
well above Macau’s 1.25% cap. Under its license, Fontana pays a 10%
fee to Pagcor on mass gross gaming revenue and 10% on net VIP
win after commissions. Jimei also continues operating as a junket
promoter at other Philippine properties, including Solaire Resort and
Casino in Manila and Fort Ilocandia Resort Hotel on the beach in
northern Luzon.
“Fontana’s success owes more to Dr Lam, his vision as well as
“We are all waiting
for economic recovery
in the mainland”
– Alvin Chau
Suncity Group Chairman Alvin Chau wants to take
Macau’s leading junket promoter to the world, both in VIP rooms
and as a resort investor and owner. In his interview with Inside Asian
Gaming Editor at Large Muhammad Cohen excerpted here, Mr Chau
wouldn’t discuss specifics of Suncity’s investment in Vietnam’s Hoi
An South integrated resort project, but shared his views on the state
of Macau gaming and his vision for Suncity.
IAG: How do you see the current junket situation in Macau?
Alvin Chau: I have great confidence since we have 1.3 billion people
in China as the foundation of the market. The junket business in
Macau is currently affected by the economy in mainland China. Every
business has its ups and downs. Because everything has happened
all at once – the slowdown of the Chinese economy as well as the
policy adjustment – the junket business in Macau declined quickly
and people haven’t had time to adapt. I think this is a normal
adjustment for the business. We are all waiting for economic recovery
in the mainland.
IAG: Do you think Macau’s market changes are permanent or
temporary? For example, Studio City opened with zero VIP tables.
Could you imagine that happening five years ago?
AC: It’s just a matter of the government’s table distribution – delaying
the distribution of VIP tables until next year. It is known that their
license for VIP rooms hasn’t started. [Macau gaming regulator DICJ did
not respond to IAG’s request for clarification or comment on Mr Chau’s
assertion.] I don’t believe a casino hotel can be complete without
VIP tables. Overall, you won’t achieve diversified development by
reducing the number of VIP rooms.
IAG: Are you happy to see a resort like Studio City that has a so
many non-gaming attractions as opposed to just building big
casino hotels with restaurants?
AC: Of course I’m happy to see those new entertainment facilities.
This is a business where people are free to determine their own
business development. When the market gets up to a certain size
with more hotels, hotel rooms and tables, competition increases.
People are not satisfied with large gaming revenue only; therefore
diverse products will keep appearing.
IAG: Do you think people need to view Macau more as a tourist
destination rather than a gaming destination?
AC: Products in the market will become more diverse. Gaming
revenue will still account for the lion’s share, but the reasons for
visiting Macau will become more varied.
10
inside asian gaming December 2015