AUSTRALIA
whopping $41.5 billion. The current Australia model is still mostly
based on a domestic grind market focused on the overwhelming number of gaming machines, casino games and racing but that’s changing, slowly but surely. Nonetheless and amidst heavy political turmoil, looming concession renegotiations, and a grey economic outlook at best, the Australian gambling market is shifting into the high margins, profitable VIP market by boasting venue expansions and recruiting top end executives from VIP savvy Macau.
Operators As it stands and according to local casino
operators Australia’s VIP is a niche market, making up only five percent of the global industry. But that hasn’t stopped Australasian operators from trying to increase their share by injecting significant amounts of capital to renovate their properties and recruiting high- level executives who previously worked closely with the VIP market in Macau, from the casino VIP gaming floor operations to higher echelons of management: Greg Hawkins, previously at City of Dreams is now CEO of Crown Melbourne; Nigel Morrison, previously from Galaxy Entertainment Group is now CEO of Sky City, with properties in Australia and New Zealand. “Macau is a very successful market and we’ve all learned a lot from it,” Morrisson tells Macau Business. He says he’s not trying to replicate the model in his Australia and New Zealand venues, but instead “bringing some of that knowledge” into his operations, along with some executives he brought with him from his days in Macau. The most recent and significant lunge into
and boasting panoramic views of the city skyline, Harbour Bridge and out to the Blue Mountains, the hotel offers a variety of rooms and suites. Positioned in the premium apex of the tower on the top floors of hotel are five Penthouse Suites dedicated to the ultimate in luxury. The two bedroom suites, uniquely designed by renowned LA designer, Lawrence Lee, feature floor-to-ceiling Sydney harbour views, bespoke furniture, fireplaces, media rooms, butler service and a private VIP arrival. One step down are the eight Adored Suites with a high end residential feel inspired by European drawing rooms. With a footprint of 115m2, entry is via a private foyer which opens onto a spacious living room with stunning views and flows through to an intimate dining area. Doors lead to a king-size bedroom with walk-in wardrobe, a fully appointed marble bathroom and a separate powder room for guests. The Darling will also be home to a custom designed 25m infinity pool area. Scented with
the VIP market in Australia is from Tabcorp de-merged operator Echo Entertainment, which has been separately operating the revamped The Star in Sydney, Jupiters casino on the Gold Coast, the Treasury casino in Brisbane and Jupiters at Townsville since June.
The company has put
forth a total of US $860 million in the refurbishment, expansion and re-branding of its flagship venue The Star in hopes the investment will narrow the gap of the VIP market breakdown. This is dominated by long-standing Australian VIP operator Crown, led by James Packer who has a 33.4% stake in Macau concessionaire Melco- Crown Entertainment. Echo, which has only recently climbed back on the VIP market after numerous attempts, says it has already grown its VIP market share to close to 30 percent this year, cutting in to Crown’s share, which represents the lion’s share of the Australian VIP market. Last year when it still operated under Tabcorp the VIP share was only 10 percent but now the operator’s medium term objective is to have an equal share of the VIP market with Crown. Echo Entertainment CEO Larry Mullin told Macau Business that the high growth rate in their VIP gaming operations – roughly 34 percent this year – is explained by the “low base it’s coming from both in the local and international markets,”
white tea and eucalyptus, the outdoor pool will be an indulgent escape complete with a deck, cabanas and bar facilities for up to 100 guests.
VIP is king Out of the total US$879 million invested in
the refurbishment plan US$160 million was channelled specifically to the domestic and international VIP business, upgrading and expanding its customer facilities at the property. The Star now provides its VIP customers
world class luxury accommodation in its new five-star hotel and extra refurbishments were made to previously existing VIP hotel suites. In addition, the existing private gaming room offering was expanded to further improve customer facilities and meet increasing demand. Echo also purchased two private aircraft capable of flying non-stop from key markets in Asia to service The Star in Sydney and Jupiters casino on the Gold Coast.
but he’s confident that the company “could do more,” especially given it’s flagship venue is located in the country’s international tourism hub, Sydney. Once completed The Star will have bragging rights to one of largest investments in the tourism and entertainment industry in the country (see boxout).
On the other side of the fence from Tabcorp and Echo, Crown is everything but sitting idly but cashing in on a $2.2 billion capital expenditure program. Expansion wise Crown is spending US$371 million on its Burswood Casino in Perth. Besides acquiring nearby Holiday Inn hotel the budget for the revamp includes close to US$7 million for the construction of a new Infinity Suite, which in turn will provide additional support to existing and new VIP gaming areas. Crown expects the new VIP offering to be ready ahead of Chinese New Year. About 33 percent of
Mice is next The next step for Echo is a 3,000-seat
events centre with sweeping views over Sydney Harbour and the city skyline to host A-list performers from around the world in an intimate setting as well as domestic and international conferences, exhibitions and functions. Designed by Sceno Plus, who have also
created The Colosseum at Caesars Palace and The Joint at Hard Rock Hotel in Las Vegas, the 2,400 square metre column-free space will be the largest event space of any hotel in Sydney. The complex will give Sydney an edge over other facilities in New South Wales and Australia, Larry Mullin argues: “The Events Centre will make The Star a complete entertainment destination with multiple reasons to visit. We already have the 2,000- seat Lyric Theatre for musicals and major theatre productions and now we will have a specialised venue for major performances.”
DECEMBER 2011 41
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