Security lapse blamed for deaths
Travellers International Hotel Group, Inc., which owns and operates Resorts World Manila, is working to “gain back the trust of our guests and the public,” said CEO Kingson Sian in an interview earlier this month.
On June 2, an armed man identified as a problem gambler stormed the resort in Manila’s Entertainment City and set a number of gaming tables on fire, forcing dozens of patrons and employees into hiding. Thirty-six people died of smoke inhalation. The gunman, Jessie Javier Carlos, then committed suicide at the property.
Inadequate security was at least partly responsible for the deadly attack, officials say—an allegation that reportedly was substantiated by videos of unmanned security checkpoints. Resorts World’s gaming license was suspended for almost a month as a result.
“We’re spending a lot of time enhancing the overall security of the place and learning about what had happened,” Sian said. He added that the closure of the casino cost the company about P60 million (US$1.2 million) a day. Visitation to the property dropped from about 30,000 a day to 20,000. Hotel occupancy dropped from 90 percent to 40 percent, but rebounded to about 60 percent by the end of June.
“While many of its mass-based patrons are loyal and will probably come back, the stigma from this tragedy is a setback for further growth,” said analyst Manny Cruz of Asiasec Securities. “Travellers must take this opportunity to improve its image, recalibrate its business and think of its future.”
Sian met with the families of the dead and attended victims’ services. The company has compensated the families of the dead and reportedly will pay for the education of victims’ children.
As part of its PR strategy, Travellers is offering discounts on movie tickets and food as well as free parking. Its security team has been replaced and the property will soon debut an enhanced “containment-style” defense system, Sian said. The damaged casino floor area will be converted into a retail zone, and Resorts World is working to open a new gaming area by the end of 2017.
A report in Bloomberg News says Travellers’ earnings have dropped in seven of the previous nine quarters even as its rivals in the jurisdiction—Bloomberry Resorts Corp.’s Solaire and Melco Resorts & Entertainment’s City of Dreams—have grown. The newest entry in the market is Okada Manila, owned and operated by Universal Entertainment Corp.
The Manila Times reports that criminal charges are pending against the management of Resorts World and its former security provider.
The market as a whole is expected to be up in July, brokerage Morgan Stanley Asia Ltd. predicts. “GGR growth in July should rebound from the 5 percent to 10 percent year-on-year in June,” analysts Alex Poon and Praveen Choudhary wrote. “Resorts World Manila reopened on June 29, and we expect business for the overall market to recover in July, but Resorts World Manila could see difficulty recovering its lost share completely.”
