Scaling back investment minimums
Four years after a campaign for integrated resorts in Queensland, Australia, yielded few results, the state government is about to give it another try.
According to Asia Gaming Brief, lawmakers are telling investors they hope to see new large-scale casino resorts on the popular Gold Coast and in the coastal city of Cairns. As an extra carrot, media reports indicate the government is willing to consider one operator for both developments.
In 2014, the state was looking for investments in the $8 billion range. That figure is likely to be scaled back for the second round; lawmakers are likely to be looking for AU$3 billion to $5 billion (US$3.7 billion to $2.2 billion) in Cairns and AU$1.5 billion (US$1.1 billion) on the Gold Coast.
AGB says there are already “significant expressions of interest in the Cairns resort,” with 10 investors taking a closer look, including some from the United States. In a sign of her personal interest, Queensland Premier Annastacia Palaszczuk recently traveled to Las Vegas and Macau, reportedly to woo investors.
The government has pinpointed the Cairns City Port precinct, which includes four hectares (10 acres) of waterfront land, as the ideal site for an integrated resort there. Lawmakers hope to see the kind of development planned for Queen’s Wharf Brisbane, where Star Entertainment Group, Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium are building an AU$3.6 billion (US$2.6 billion) resort complex on 26 hectares (64 acres).
Among the projects that failed were Aquis Group’s AU$8.15 billion casino resort proposed for 343 hectares (847 acres) north of Cairns. Aquis honcho Tony Fung later omitted the casino element to build an AU$440 million hotel in Surfers Paradise. AU$7 billion Gold Coast project from the China-backed ASF Group foundered due to opposition from locals and environmental groups. ASF redrew its blueprint and presented a $3 billion plan to the state government, but it was rejected. ASF has said it “still believes in the benefits it would bring to the community and region.”
The government’s goal is to boost tourism and create more local jobs. The Gold Coast is a popular destination for Chinese tourists, who now comprise 25 percent of all visitors. In 2017, a record 2.7 million visitors came to Queensland for year-on-year growth of 4.3 percent. Chinese visitation grew to a record high of 503,000, exceeding the half-million mark for the first time. More planned direct flights to and from China and Singapore should help increase those numbers.
Tourism in Queensland contributes AU$23 billion (US$17 billion) to the state’s economy and supports more than 230,000 jobs; the government has committed its effort to growing the sector, AGB reported.
