Tuesday 19. April, 2016

The Star and Crown Battle it Out for Chinese Tourists

Australian casino giants, The Star Entertainment and Crown Resorts, are in the midst of a fresh battle, both attempting to gain the larger share of the Chinese tourism market in Australia.

The Star Entertainment Group is negotiating with the state-owned China Travel Service which has hundreds of travel offices across mainland China and Hong Kong. The Star hopes that this deal will channel a large portion of China’s tourists to its own integrated resorts across Australia.

The announcement comes after it was revealed last week that James Packer’s Crown Resorts was holding secret talks with the Chinese-backed ASF Consortium to become their partner in their $2 billion casino in Queensland.

The Star may be concerned that if Crown’s talks with the ASF Consortium yield a partnership deal, their Jupiter’s Casino on the Gold Coast may lose business. While The Star won the rights to build Brisbane’s Queen’s Wharf Casino over Crown, a deal between Crown and ASF Consortium would be in direct competition with The Star’s Jupiter Casino which is in the midst of an $850 million upgrade.

The casino proposal from ASF has been moved from a site on the Wave Break Island at Southport to a site only ten kilometers from Jupiters. The ASF Consortium may also have benefited from the fact that in March, Tony Fung withdrew his application for a casino license for his Great Barrier Reef development until the first stage of the project has been completed. As a result, the Queensland Government reopened the tender for an integrated resort in the area.

There is heated competition between the Star and Crown Resorts in Sydney as well where Crown is planning the development of an integrated casino at Barangaroo just across the harbour from The Star Casino.


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