The government of Jeju Island in South Korea is calling for five casinos in the jurisdiction to reopen in the next few weeks.
A government spokesperson told GGRAsia, “Our official position is resuming all closed foreigner-only casinos by October 1, as we judge there is no reason to continue disruption.
“If any of those venues wishes to continue pausing,” the spokesperson continued, “it would need to consult with us—with proper reasons—in advance.”
Casinos on the island, which only serve foreign gamblers, were forced to close in early 2020 in response to the Covid-19 pandemic. Jeju Sun Hotel and Casino, operated by Philippines-listed Bloomberry Resorts Corp., plans to reopen October 3. MegaLuck Casino, run by Hong Kong-listed New Silkroad Culturaltainment Ltd., plans to reopen November 1.
Three other properties—the Gongzi Jeju Casino; the Jeju Oriental Hotel and Casino; and the Yalanwan Casino—have not announced reopening dates.
Some island properties have reopened, including the casino at Jeju Dream Tower, run by Lotte Tour Development Co. Ltd.; the Landing Casino, operated by Hong Kong-listed Landing International Development Ltd. at Jeju Shinhwa World; and Paradise Casino Jeju Grand, controlled by Paradise Co. Ltd.
In late August, the South Korea Ministry of Justice announced that the country would extend a visa-free entry program to Jeju for foreign travelers. Among the most important feeder markets is Japan.
According to BusinessKorea.com, in a research report titled “Casino Industry: Japanese Customers Are Back,” NH Investment & Securities analyst Lee Hwa-jung said Japanese players have been important to the revival of the South Korean casino industry, helping Paradise Co. achieve a 40.7 percent increase in August table drop compared with July, and GKL a 23.9 percent increase for the same period.
“With the reopening, the business situation of Korean casinos has been fully normalized, and with the easing of restrictions on movement between countries, access to foreign casino customers is gradually improving,” he wrote. “In particular, Japan’s easing of the national lockdown has had a significant effect on improving the accessibility of foreign casino customers.
“Before Covid-19, the two axes of foreign casinos in Korea were Japanese customers,” he continued. “Since June, when the issuance of Japanese tourist visas was resumed, the monthly drop amount for foreigner-only casinos in Korea also showed a marked improvement thanks to the recovery of Japanese customers.
“Pent-up demand, which has been waiting for two and a half years, has entered a period where demand is in full swing.”
Paradise is Lee’s “top pick” for a robust recovery, with its “differentiated capabilities for Japanese VIPs as well as mass customers.
“Paradise is showing differentiated performance from its competitors with its capacity to attract customers using local partners (Sega Sammy) and complex resorts (Paradise City).
“If visa waiver resumes and the number of flights increases, the benefits will be even greater.”
