Australian media outlets are reporting that analysts have issued stark warnings on the Gold Coast’s casino construction plans, as the region prepares for the development of its second large scale integrated resort.
Analysts for research firm Macquarie Research have given notice that the Gold Coast may not be “the most attractive market” for a prospective new integrated resort and casino.
Detailed in the Gold Coast Bulletin, published material reveals that creation of a new multi-billion dollar ‘global tourism hub,” could potentially have a far more significant impact upon the local market.
As a number of firm’s jostle for position, and global heavyweights begin to flex their muscles regarding construction, an analyst from Macquarie commented that any creation in excess of AU$400m could well struggle to deliver an appropriate return.
Speaking to the local Australian publication, it was further stressed that:“We see challenges generating an appropriate return on a development larger than $400 million, which compares to media speculation of around $2 billion.
“The Gold Coast is not the most attractive market for a new integrated resort and casino, in our view, relative to other regions within Australia.
“With a decision up to the Queensland Government, they will need to assess the net community benefits and determine whether it deters The Star Gold Coast from completing its recently approved $2 billion masterplan.”
Florida-based global giant Hard Rock International is the most recent firm to express its interest in the Gold Coast, revealing its Tokyo-based Asian board have given the go-ahead to a AU$2bn action plan for a prospective second casino licence.
The company have stated that it could replicate its integrated resort within Barcelona if given the green-light by State Government, which would see the inclusion of 1000 rooms, a shopping precinct, major entertainment centre and casino.
Furthermore, Australian casino operator The Star Entertainment Group recently saw the Queensland Government grant approval for a AU$2bn “masterplan” expansion of its The Star Gold Coast property.
Stressing the importance of the investment, slated for completion in 2022, Matt Bekier, MD and CEO of The Star Entertainment Group, commented: “This would be a project of incredible scale, delivering substantial economic benefit to the State from jobs and increased tourism visitation.”
