Australian casino operator The Star Entertainment Group is once again trying to pressure the Queensland government into nixing a global tourism hub project that would include the Gold Coast’s second casino.
The Star operates the city’s only casino – The Star Gold Coast – and has fervently been looking to prevent state lawmakers from putting an end to its gaming monopoly on the Gold Coast.
During the company’s annual general meeting that took place today, Chairman John O’Neill told investors that they are ready to commit to a A$2 billion masterplan for the expansion of their existing hotel and casino complex on the Gold Coast “in return for certainty around maintaining the Gold Coast as a one casino city.”
The expansion project will include the addition of new towers, improvements at the existing casino, a A$100 million investment in the Gold Coast Convention and Exhibition Centre, and refurbishment of the existing Sheraton Grand Mirage hotel. According to Mr. O’Neill, the Gold Coast is too small for two casinos.
Global Tourism Hub
The government of Queensland has introduced the global tourism hub concept in a bid to boost the state’s tourism industry that already supports more than 200,000 jobs and injects billions of dollars into the state budget.
Generally speaking, the initiative involves the development of integrated resorts – global tourism hubs – with casinos among other facilities around the state. The properties are expected to lure even more international visitors to Queensland.
Earlier this year, the government held an expression-of-interest process, inviting international companies to pitch concepts for the development of a global tourism hub on the Gold Coast. According to early projections by state lawmakers, a global tourism hub in the city would create more than 6,000 local jobs and attract an additional one million tourists every year.
Queensland Tourism Minister Kate Jones has said previously that a resort of this kind would be a game-changer for the Gold Coast as it would provide it with “world-class entertainment and convention facilities, events, tourism experiences, and attractions.”
The Star’s Opposition
The Star, which is also currently building a A$3 billion integrated resort on Brisbane’s waterfront, has warned the government that its spending on the Gold Coast would be highly dependent on the competition landscape.
Speaking of the company’s proposal to invest A$2 billion into improving its existing gambling property in the city, The Star Chief Executive Matt Bekier said today that “this is a constructive proposal we take to government” and that they will “make this investment if we get exclusivity.”
The Queensland government said that it would not comment on The Star’s A$2 billion plan while there is a process underway that involves the development of the Gold Coast’s second casino.
The global tourism hub initiative has reportedly attracted interest from major international casino operators. According to local media reports from last year, Florida-based gaming and hospitality company Hard Rock International has shown interest in operating a casino resort on the Gold Coast.
Soruce: Star lifts pressure over rival Gold Coast casino, AFR.com
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