MACAU BUSINESS
Paradise City [next to Incheon Airport, Seoul] and two more in the pipeline, with Caesars and Mohegan Sun [American gaming operators] and Shinhwa World opening in Jeju by the end of this year. A second goal would be to become the true landmark where Chinese and other foreign visitors, and even domestic tourists, feel they must visit.
M. B. – EBIDTA is always more important than market share. But even here, which percentage
would you like to say in the future ‘this is mine’? L. T. – It’s very difficult to answer that now.
However, by being the number one EBIDTA IR in Korea, I’d say we should have a quarter of the foreign- only casino market share.
M. B. – Not easy to achieve…? L. T. – We’re different from the ones being
developed or already in operation. We’re much larger scale, in a better location, and our DNA is superior.
Polishing the jewel M. B. – Lotte means many businesses in Korea. And
different companies in a family conglomerate. The Lotte Tour part of the business has been focusing on more logistic tourism, with its market dominance in tours. Why casinos now? L. T. – Yes, Lotte Tour and Lotte Group are family
related but separate companies. Both, with their affiliates, are more focused on tourism businesses. While Lotte Group owns the Lotte chain of hotels, the Super Tower, Lotte World and many others, like retail, petroleum and so on, we – Lotte Tour and Dongwha Duty Free – have been mainly focused on the tourism business. We are the oldest inbound/outbound tourism company in Korea and also the first duty free
20 OCTOBER 2017
company in the country, since 1979. We’re not trying to do anything new but since the jewel of the tourism business is the casino business this Integrated Resort will be the pick of our business.
M. B. – In Macau, it’s difficult to diversify from the
casino industry and pay the bills. Most other businesses do not make much money if any but there’s the casino always ready to compensate the numbers, so the IRs can appeal to families as well as gamblers. But everyone can play in the casinos. In Jeju, none of the casinos allow domestic players. So, South Koreans will take advantage of the amenities while foreigners gamble. Is that a recipe for success? Will that be enough to pay the bills? L. T. – Dream Tower is not a government driven
casino licence bidding project because we have owned the land since 1980. We’re a much more private business driven IR. That’s why we don’t have government driven amenities like the MICE businesses, theme parks or golf courses. We’re more a downtown, urban, casino resort. Basically we’re fat free. We’ll have 1,600 rooms, ten restaurants, an observation deck and retail. Whatever we think will attract foreign tourists to our casino. On a return on investment basis we’re fitter than any other [enterprise] in Korea.
M. B. – Macau is nowadays seen as the jurisdiction
to beat. When you look at Macau, with your experience, what areas do you think Jeju and the Dream Tower can beat Macau in? L. T. – I don’t think we will beat Macau but we can be a very good substitute for Macau. Jeju is the closest international destination from East China, from Beijing to Shanghai. Plus, the love that Chinese have for K-Culture – K-Pop, K-Drama, K-
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