South Korea Woos Chinese ‘Low Rollers’

Sun, May 10, 2015

The Asian country is using a double-pronged approach to attract both “low-rollers,” or Chinese shoppers, and VIP gamblers, who have fled Macau in record numbers. The number of Chinese visitors to South Korea has skyrocketed, but revenue has not.

In 2014, tourism was up 50 percent

In a ploy Reuters dubbed “rice cooker roulette,” South Korean casinos are going all-out to attract Chinese shoppers, also known as low rollers, with giveaways like free iPads and yes, complimentary rice cookers.

The industry hopes to hedge its bets by attracting mainstream tourist as well as big-spending “whales.” Duty-free shopping helped to grow tourism to 6 million in 2014; during the year, Chinese visitors alone spent a whopping $10 billion in the country.

They’re gambling as well as shopping?Paradise Walkerhill in Seoul, South Korea’s biggest casino firm, reports that the number of Chinese bettors at its five South Korean casinos rose 51 percent in the fourth quarter last year. But it hasn’t pushed the needle much. Gaming revenue rose just 3.7 percent. And Chinese VIPs spent an average of just $164 per person for the year, according to Morgan Stanley. That’s compared to $1,646 for the Philippines and $1,716 for Singapore.