Resorts gamble on casino attraction
Resorts gamble on casino attraction
Vietnam’s still young gaming business is showing signs of maturity with a number of hospitality developers asking for licences to build casinos and upcoming wide-ranging measures that would help legitimise the industry and streamline investment.
The latest proposal came from Singapore’s resort developer and operator Banyan Tree Holdings, which wants to build a casino at its existing $800 million Laguna Lang Co integrated resort in the central province of Thua Thien-Hue.
According to Laguna Lang Co, a subsidiary of Banyan Tree Holdings and also the operator of the integrated resort, a casino will “further enhance” its guests’ experience and position the resort as “a strong competitor” in the region.
Although Banyan Tree Holdings has to wait for the Vietnamese government’s permission, local authorities have already given a thumbs-up to the project.
In the coming years the number of casinos in Vietnam is expected to double because developers like Banyan Tree Holdings are champing at the bit to get access to the market.
Not far from the Laguna Lang Co resort, another Vietnamese private developer, Sun Group, has asked government permission to open casinos at its two existing resorts in Danang - Ba Na Hills and Son Tra Intercontinental Resort.
The Vietnamese government is also calling on private investment for developing two integrated casino-resorts in the Phu Quoc Island and Van Don Island. Currently Vietnam has seven casinos licensed nationwide, that serve only foreigners, as Vietnamese are not allowed to enter gaming establishments. The biggest is the Grand Ho Tram in the southern province of Ba Ria-Vung Tau. It has 90 gaming tables and 1,000 electronic slot machines. When Canada’s Asia Coast Development Limited Company – the owner of the Grand Ho Tram – completes the ongoing second phase of the project, it will be expanded to 180 tables and 2,000 machines.
Vietnam is emerging as an attractive tourism destination in Asia, and casinos, while generating revenue, can also help attract more guests.
Australian Securities Exchange-listed Donaco International Limited, which holds a 95 per cent stake at five-star casino and hotel Lao Cai International Hotel in the northern mountainous province of Lao Cai, last month announced that its brand-new, five-star Aristo International Hotel, had seen strong results since its soft opening on May 19. “The opening of the new property has attracted strong interest from players and junket operators. Total visits to the gaming floor since the soft opening are up 41 per cent against the old property,” according to the casino operator.
Donaco International gained approval from the government last year for increasing its total gaming tables to 50, from eight, in order to serve the rising demand of players coming from China. The casino operator said that the current tensions between Vietnam and China over the East Sea had slowed overall Chinese tourism to Vietnam, and deterred some major players from visiting the property, but it still identified a very strong demand for gaming entertainment from VIP players and junket operators in Yunnan province and elsewhere.
US-headquartered Silver Shores Company – the owner of casino and resort Crowne Plaza in Danang – has never made its business results public, but its plan to expand its casino indicates a positive outlook on the market.
However, some operating casinos in Vietnam are struggling. Haiphong Joint Venture International Tourism Corp, the owner of Vietnam’s first casino Do Son Resort & Casino in the northern port city of Haiphong has reportedly sustained losses since 2012, when it released figures showing a VND169.1 billion, or $8.5 million, loss. The company said the loss was a result of China’s policy of limiting Chinese from traveling to Vietnam for gambling since 2003, as well as competition from other gaming rooms in the north.
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