Coast ‘not attractive’ market for second casino
A GLOBAL corporate research firm has warned the Gold Coast is “not the most attractive market” for a new integrated resort and casino.
Analysis by Macquarie Research published last week says the creation of a multi-billion-dollar global tourism hub would have a significant impact on the local market.
The State Government will go to market within weeks for the new development, with global entertainment giant Hard Rock International already throwing its hat in the ring.
But a Macquarie analyst note says a development of larger than $400 million would struggle to deliver an ”appropriate return”.
“We see challenges generating an appropriate return on a development larger than $400 million, which compares to media speculation of around $2 billion,” the note said.
“The Gold Coast is not the most attractive market for a new integrated resort and casino, in our view, relative to other regions within Australia.
“With a decision up to the Queensland Government, they will need to assess the net community benefits and determine whether it deters The Star Gold Coast from completing its recently approved $2 billion masterplan.”
It was revealed earlier this month that Hard Rock’s Tokyo-based Asian board gave the green light to the $2 billion plan after it emerged State Cabinet would likely make a decision before Christmas on whether it supports the second casino licence.
Hard Rock said it would replicate its Barcelona integrated resort on the Gold Coast, with 1000 rooms, a shopping precinct, major entertainment centre and casino.
A Star spokesman told the Bulletin the company was focused on the expansion of its Gold Coast facilities just weeks after the State Government ticked off a masterplan for the site.