China crucial to casino luck

THE true impact of the cancellation of direct seasonal flights between Cairns and mainland China for this year’s Chinese New Year has been revealed in the Reef Casino Trust’s half yearly report.

The trust’s revenue (rental income from the casino and hotel) and profit have taken a big hit in the first six months. Income was down by $2 million (17.4 per cent) and the distributable profit to unitholders has fallen by 38.2 per cent by more than $2m to $3.7m.

The trust has blamed the “soft” Chinese New Year, “strong local electronic gaming competition” and “subdued” premium gaming due to the impact of the arrest of Crown Casino marketing staff in China earlier this year.

Room revenues were down but food and beverage income was up 16.9 per cent mainly because of the new Bar36.

However, the casino’s senior managers are looking forward to a better second half and into 2018, targeting an improving Japanese market, the “stabilisation” of the premium market and a new deal with a Macau marketing agent, extended casino trading hours to 5am and the start of direct scheduled China Southern Airline flights from Guangzhou in December.

“This should add to the Chinese tourism growth and have a positive impact on our operations,” says chairman Ben Macdonald.

The trust reports a “stronger”start from July 1 and “a slightly stronger” July as the region gets ready for the traditional high tourism season.

It is clear that direct flights from China are crucial for a successful Chinese New Year in 2018 and well beyond for the casino and the tourism industry as a whole. Nick Dalton nick.dalton@news.com.au