Billions in VIP revenue possible
Echo Entertainment, which won out over rival Crown Resorts to develop a multibillion-dollar resort in Queensland, Australia, is hoping the property’s luxury appointments will bring in a tide of wealthy Chinese gamblers. According to the World Casino Directory, the favorable Australian dollar could also help jumpstart tourism in the land Down Under.
The resort will be open to Australian nationals, of course; Aussie punters are among the most enthusiastic in the world. But the target demographic is Asian VIPs. Queensland Premier Anna Palaszczuk says the Queen’s Wharf resort has the potential to attract millions of visitors each year. It is expected that it will create 3,000 temporary jobs and up to 8,000 full-time jobs, and fuel the rest of the local business community.
Echo CEO Matt Bekier points out that China is Australia’s fastest growing source of overseas visitors. In 2014, 918,000 Chinese visitors came to Australia, up 21.7 percent from 2013. The Chinese also spent the most—$5.7 billion, 19 more than they did the previous year.
Echo’s partner in the venture, Hong Kong-based Chow Tai Fook Enterprises Ltd., is also confident that Queen’s Wharf is a natural destination for Asian travelers. CEO Patrick Tsang told the Sydney Morning Herald it will open up its database to bring in the right customers.
“We are in touch with a very diverse group of consumers in China, a segment of which will be interested in gaming and I believe if we build an international resort of quality we will be able to attract them,” Tsang said.
Echo will provide half the capital costs and run the casino, reported GGRAsia. Chow Tai Fook will split the remainder with investment partner Far East Consortium. Construction is set to start next year, with the opening scheduled for 2022.
According to the Herald, the two Hong Kong-based companies will earn a fee for each VIP customer they deliver to the new complex. UBS has estimated the casino could generate $22 billion a year in its VIP rooms by 2023.
