South Korea’s government is expected to unveil a new tourism strategy this month that could see a lowering of investment barriers for companies interested in developing resort-scale casinos in specially designated economic development zones.
“We are considering easing the bidding standards after receiving complaints that it is too difficult to meet the criteria of BBB credit ratings,” a government official told the English-language Korea Herald. “But we have yet to decide on detailed plans.”
With an eye on the current boom in leisure travel out of China the government particularly is looking to develop an economic zone at Yeongjondo near Incheon International Airport into a regional tourist destination. But the momentum stalled last year when the Ministry of Culture, Sports and Tourism rejected applications for the zone from Las Vegas-based Caesars Entertainment and Japan’s Universal Entertainment. Caesars’ bid was submitted in conjunction with Indonesian conglomerate Lippo Group. Plans called for an integrated resort pegged at 2.2 trillion won (US$2 billion). No reasons for the rejections were publicized, but the Herald ties them to concerns about financial stability.
Universal, meanwhile, may be looking for a way back in. Last week, the company controlled by machine gaming magnate Kazuo Okada purchased a site in Yeongjong Sky City that industry sources say could be an attempt to restart the licensing process.
Also last week, PNC Financial Services, which owns U.S.-based PNC Bank, submitted a letter of intent to the state-run land developer for a casino resort representing an investment of 7 trillion won.
To date, the only gaming operator approved to build at Incheon is Korea’s own Paradise Group, the country’s largest private casino company. Paradise is partnering with Japan’s Sega Sammy Holdings and plans to start construction on an 11,190-square-meter resort in April with completion slated for 2017.
RelatedPosts
