CEO says tough time in trade
THE head of Star Entertainment Group said those considering embarking on a Gold Coast global tourism hub should “think twice” about investing in the sector as it sheds up to 400 jobs nationally.
Star CEO Matt Bekier said he could not comment specifically on the State Government-instigated tourism hub process but market conditions were tough worldwide.
“If anybody else was thinking about (investing in a casino) now, they’d probably have to think twice,” he said.
Mr Bekier’s warning follows a less-guarded letter from Star Queensland managing director Geoff Hogg to Premier Annastacia Palaszczuk and her Cabinet ministers last year, saying the proposal threatened Star’s $9 billion investment in southeast Queensland.
In it he referenced research by Macquarie showing a second Coast casino would have difficulty recouping investment of more than $400 million and a ReachTel poll confirmed the majority of residents were opposed to it.
The Gold Coast Tourism Advisory Panel has been investigating a number of possible sites for a global tourism hub, but those locations remain a closely guarded secret.
Tourism Industry Development Minister Kate Jones said the Government was shocked by the Star cuts but planned to push ahead with a tourism hub.
“My immediate thoughts are with staff who are going to lose their jobs,” she said.
“I will reach out to The Star to have a meeting with them so we can better understand what impact their financial position will have on their future plans for the Gold Coast.”
When asked if this would impact on the progress of the tourism hub, Ms Jones said: “It’s important to remember some of the major global entertainment companies have worldwide loyalty customers in the tens of millions.”
Caesars had 55 million loyalty members and target a different market to The Star, a casino source said.
“This is just more proof the Gold Coast needs an integrated resort – a global player that has the ready-made customer base to bring millions of international tourists to the Coast,” the source said.