Casino seeks clarity
REEF Hotel Casino Trust chairman Richard Haire has hit out at the uncertainty over a proposed Global Tourism Hub as the gaming venue reports an 11 per cent drop in revenue and a 34 per cent fall in profits.
In the 2019 annual report he said the trust made a submission for the hub.
“The government’s process continued during 2018 and 2019 and looks to continue into 2020,” Mr Haire said. “There has not been much public commentary or information provided by the State Government,” he said.
Mr Haire said the government “imposed strict confidentiality obligations on participants as part of its
GTH process”.
“The ongoing uncertainty surrounding the GTH is not helpful for Cairns,” he said.
The trust recorded a net profit of $3.34 million, down from $5 million in 2018, and rental revenue fell from $21 million to $19 million.
“Coronavirus – the COVID 19 impact is uncertain. Already the travel ban for visitors from China into Cairns and Australia has impacted trading so far this year,” he said.
Mr Haire said the Cairns economy, apart from generally reflecting the broader Australian economy, was “challenging, particularly with a soft 2020 outlook for international tourism”.
Casino chief executive Allan Tan said tourism had slowed. “Softness in international tourism (including the Chinese market) and to a lesser extent domestic tourism was at a level not experienced for a number of years, made worse by an extraordinary wet season in the first half of the year. We were not immune with lower visitation to our complex,” he said.
Mr Tan said there had been competition in gaming as well as in hotels with 566 new rooms added to the market by Crystalbrook Collection.
He said hotel revenues were down nearly 11 per cent, food and beverage fell 5 per cent, table games decreased by 21.7 per cent but poker machine turnover was up 2.3 per cent.
Mr Tan said the Chinese economy had slowed and there was also “a weak Chinese New Year season”.
“By most accounts, Cairns (and Queensland and Australia) will face challenging conditions during the year in terms of tourism, consumer confidence and general economic conditions,” he said.