STAR KEEPS THE FAITH
Casino giant to push on with $2b site but park convention centre
STAR is so bullish about international tourism bouncing back it will press on with its $2b masterplan. But it won’t fund a $100m convention centre super sizing after monopoly talks broke down: “It won’t be with our money,” Star’s CEO said.
THE Gold Coast’s casino resort giant will press ahead with a $2 billion Broadbeach masterplan on schedule, citing confidence in the future recovery of international travel.
But Star Entertainment Group CEO Matt Bekier, on the Gold Coast for the first time in four months on Sunday, said it would be up to the State Government to find funding for a much-needed super-sizing of the convention centre.
City tourism bosses have been agitating for the redevelopment and increase in size of the Gold Coast Convention and Exhibition Centre so it can host bigger conferences attracting high-yielding tourists.
But Star’s proposed $100m offer to fund it is now off the table after talks with the State Government for a Star casino monopoly in the city in exchange broke down.
Mr Bekier said: “I hope it will be upgraded but it won’t be with our money. The ball is now in the state’s court and I hope they do something with it because it is a great asset.”
On a positive note, Mr Bekier said development at its Broadbeach island – with four more towers green-lighted for the next decade to create 7000 jobs – is on track to continue despite the virus pandemic.
Star is mid-construction on the site’s third tower to house a Dorsett hotel.
A “bullish” Mr Bekier said his sights were firmly set on preparing for the return of international visitors by developing attractions to act as a magnet for travellers.
The pandemic had hurt Star, which has welcomed back 800 of its 2000 Gold Coast staff, but he was staying positive, he said.
“If we can keep this thing under control life will go back to a pretty good business as usual. We have always said we would pursue the masterplan based on market conditions and the Dorsett will be delivered next year as planned. The next tower is in advanced presales. Things are looking good.
“There has been significant change to people’s lives but in two to three years the market will normalise and we will have international travel again, with the Gold Coast the top destination on everyone’s list.
“It is clearly exciting but we will need the hotel rooms to house them, and given our timing it could be the perfect moment to have the capacity ready for when the international market comes back.”
Mr Bekier said he was “bullish” about the market while Star refocused its business on the domestic market in the short to medium term.
The company will “recast” its offerings and offer deals tailored for domestic customers, which made up 85 per cent of its Gold Coast earnings before the pandemic.
The masterplan, approved by the State Government, includes four new towers of 65, 74, 54 and 52 storeys for 1794 apartments and 518 rooms.
The breakdown of the StarState Government talks came as Tourism Minister Kate Jones shelved the hunt for investment in a global tourism hub on the Gold Coast.
On the $100m convention centre offer going begging, she said: “The Palaszczuk government remains committed to looking at a future upgrade of the convention centre. We know (it) will be crucial to tourism recovery with hundreds of conferences already booked for next year.”
THE State Government has been able to save face in a major way on its handling of the global tourism hub exploration by parking it and blaming “investment conditions” not being favourable right now.
The revelation in this newspaper on Saturday that the Labor Government would put any GTH hunt on ice and had pulled the pin on monopoly talks with Star Entertainment Group which wanted exclusivity for three decades in return for investment commitments would have been far more controversial if the nation and city wasn’t gripped by a pandemic.
The whole shemozzles which have now resulted in any much-needed convention centre upgrade being left in limbo has shades of the debacle that was Labor’s handling of the ASF development proposal for part of The Spit.
In that instance, the Palaszczuk-led Government strung Chinese developer ASF along giving it favoured status before abruptly pulling pin on the whole idea. It prompted ASF to sue in response for $9 million.
Now, despite the breakdown of the Star-State Government talks – in which Star would pump $100 million into doubling the convention centre at Broadbeach, contractually commit to its $2 billion masterplan and redevelop the Sheraton Mirage at Main Beach in exchange for a 30-year casino monopoly – it seems Star will press on.
Its optimistic outlook in the future of international tourism long term – and by that we mean a hopefully post-pandemic two to three-year horizon – for the southeast Queensland corner and Gold Coast is reason to look ahead with anticipation.
But the bungling of the GTH which seemed to have failed to attract any serious bidders and Star talks breakdown when it has never said its $100 million for the convention centre upgrade was off the table in despite the existing climate, is a disappointing blow for the city and its infrastructure.
The ball is now in the State Government court as to where to now for the centre upgrade which city tourism bosses have long argued is a vital must-have for helping grow the future of the tourism economy.