AUSTRALASIA 40
AUSTRALIA
Star eyes tourism to propel growth Star Entertainment Group and its Asian partners are carrying out one of the largest investment and refurbishment programs in Australia’s integrated resort market, amidst projections for surging inbound tourism.
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he company, along with Hong Kong- own and international hotel brands to cater listed Chow Tai Fook Holdings and for different sectors of the market. The Queen’s Wharf project is currently Far East Consortium, is investing at least $3.6 billion ($2.6 billion) to in the excavation stage, which is expected redevelop the Queen’s Wharf area in Central to continue until August next year. The first Brisbane, while it has also spent $850 million stage of the resort, which will feature hotels, on upgrading and expanding the Star Gold bars and restaurants is on track to open in late 2022. An upmarket Rosewood Hotel is Coast, formerly known as Jupiters. This week, Star also announced it has formally scheduled for completion in 2023, while a applied for permission for a $500 million project plan to upgrade the heritage buildings on to bring a Ritz-Carlton Hotel to Sydney on the the site and open a new Ritz-Carlton hotel and retail mall in the Treasury Brisbane will site of its existing property in the city. “Our focus is on partnering with the state be finished in 2024. In total, the complex government to drive domestic and international will house five hotels, increasing capacity by tourism to Queensland and Australia,” Geoff about 1,000 rooms. “The key with an IR is to have a range Hogg, managing director Queensland for Star, said in an interview with AGB. “There is of partners, it’s about a range of brands that currently not so much growth of the domestic complement each other and don’t compete,” market, but we are expecting a lot of growth for he said, adding that each hotel group caters to a different segment the state from overseas,” and is able to leverage he said. its own loyalty programs Total gambling to bring in customers. expenditure in AusThere is currently The existing casino tralia for 2017 was up not so much growth in the Treasury Brisbane 3.9 percent at $23.65 will be transferred to billion, though casino of the domestic the new IR. revenue was largely flat, market, but we are Hogg says the new up just 0.4 percent at casino floor will be very $5.19 billion. expecting a lot of different from the feel Unveiling plans growth for the state of the existing property, for the Ritz-Carlton from overseas. which contains small Sydney project, Star rooms split on two CEO Matt Bekier noted floors. The new main that Australia gets about floor will be open plan 8.5 million tourists a year now, though that figure is projected to and all on one level. It will have about 2,500 rise to 15 million within a decade, led by the gaming machines, an increase of about 5 rapidly expanding wealthy Chinese middle percent from now and expects to have about class. China arrivals to Australia last year 250 table games, although there is no cap. The property is expected to cater for a higher were up 12 percent to 1.3 million. Hogg said the new properties will help the number of tourism arrivals, but the company group meet this demand with a range of its also expects support from the local community.
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Asia Gaming Briefings | October 2018
“The key is that what tourists are looking for is to engage in experiences that locals enjoy,” he said. “Therefore, there will be a significant focus on local food and wine and cuisine.” Hogg said the revenue split between VIP and mass and overseas and local is continuing to evolve “and will evolve a lot more once Queen’s Wharf opens up.” Rival Crown Resorts reported its results in August, showing a strong rebound in VIP program play turnover, which gained 54.4 percent. Visitor access to Queensland is expected to improve with the opening of a second runway at Brisbane airport in 2020, which Hogg says will give it the same capacity as Hong Kong, with no nighttime curfew on flights. “Brisbane will be the gateway to Australia,” he said. Given the optimistic outlook for growth, the Queensland government may seek to capitalize with the issue of two further IR licenses. The tendering process is already underway for a project in Cairns, with shortlisted candidates due to provide their detailed expressions of interest proposals this month. The government has said multiple national and international firms are involved in the process, without giving names.
