Melco Crown Entertainment has identified its “single biggest opportunity,” and it’s in Japan, where the Macau casino giant says it is in talks with several Japanese companies about getting a US$5 billion joint-venture resort open in Tokyo in time for the 2020 Summer Olympics.
Todd Nisbet, executive vice president of Strategy and Development for James Packer’s Melbourne-based Crown Resorts, told The Australian the project will be far more elaborate than Melco’s City of Dreams in Macau.
“We want to come up with something that’s unique, speaks to the culture, has an entertainment aspect to it,” he said.
He revealed also that Melco Crown is negotiating with the governments of South Korea and Vietnam on possible resort developments in those countries. But he emphasized that “Japan is the biggest single opportunity that we are looking at in terms of an international expansion and growth story, just because of the sophistication of the market, the appeal of the overall area.”
He added that Mr Packer is visiting Tokyo this week as part of a delegation of Australian business leaders accompanying Prime Minister Tony Abbott on a swing through North Asia and that the subject of a casino is expected to be part of those discussions.
An A-list of global operators is eyeing a Japan market analysts believe will generate US$10 billion-$15 billion in gaming revenue out of the gate and could top $40 billion as it spreads from initial locations in Tokyo and Osaka into regional destinations in line with the Abe government’s desire to leverage tourism to reinvigorate the economy.
“Everybody has reached for another gear, whether it be the political bodies … or prospective international companies that are interested in coming into Japan,’’ Mr Nisbet said. “There’s been this moment in time where the Olympics has crystallised thinking around what’s the best way to capitalise on Japan being on the world stage and really driving the next stage of growth.”
Melco Crown believes it’s a front-runner by virtue of its success in Macau, its gold-plated balance sheet and the high regard in which the region holds its management.
“We have an incredibly successful business both in Australia and abroad. We are financially sound … It is well within our means,” he said.
In Vietnam, he said the government is coming around to the idea that continuing to forbid local residents from entering casinos is preventing the country from attracting top developers.
“They are making a reassessment and moving forward.”
He said he recently paid a visit to South Korea, whereboth Crown and Melco Crown are considering opportunities both together and individually.
As for Sri Lanka, where Crown’s plan to build a US$350 million casino and hotel in the capital of Colombo has encountered political and public opposition, he maintained that “It is not a matter of if, it is when.
“Things will be finalized by the end of the year,” he said, adding, “That is okay with us. This isn’t a foot race.”
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