Inside Asian Gaming

NOVEMBER 2018 INSIDE ASIAN GAMING 21 Korea and Jeju’s mainland China visitor arrivals fell from 3.06 million in 2016, 85% of Jeju’s total foreign arrivals, to 747,315 last year, then fell another 46% through the first seven months of this year, according to Jeju government statistics. Overall foreign arrivals are down from a daily average of 9,871 in 2016 to 2,842 this year. While Jeju’s tourism industry draws from the full arrival pool, projected at 14.3 million this year, including 13.5 million Koreans, gaming relies on foreign visitors, particularly Chinese. Industry insiders report Chinese arrivals picking up recently. China has relaxed the group tour ban selectively by province, starting with Beijing and Shandong. The crowds swarming Jeju’s three- storey Lotte Duty Free Shop – South Korea’s Lotte Group became a particular target of Chinese officials after military authorities placed a THAAD battery on a Lotte golf course – suggest the worst may be over. Landing also has its own issues, with Chairman Yang Zhihui unavailable since August, reportedly detained by Chinese authorities, and its proposed IR project in Manila under fire from Philippine President Rodrigo Duterte. Landing says neither situation impacts Shinhwa World operations and a recent visit by Inside Asian Gaming supports that assertion. QUANTUM LEAP Beyond current rows, the key impediment for Jeju realizing its gaming potential has been lack of investment in visitor “infrastructure” to expand foreign arrivals, Landing Chief Operating Officer Jay Lee explained to IAG at G2E Asia in May. “Infrastructure in terms of new hotels and F&B outlets, the whole entertainment options for the tourists,” he said. Shinhwa World is the largest foreign direct investment in South Korea’s history, a quantum leap beyond anything previously seen in COVER STORY Shinhwa World brings first class gaming and visitor amenities to what’s already a top tourist destination, attracting 15 million visitors last year. Jeju. When phase one is completed in the coming months, Shinhwa World will top 2,000 guest rooms, along with family attractions, a full range of F&B, retail, the first hotel-linked convention center in Jeju and the island’s largest casino. In February, Landing transferred casino operations from the Hyatt Regency in Jungmun, Jeju’s south-shore beach resort area. The Hyatt had 28 gaming tables and 16 slot machines in 800 square meters with GGR of HK$235 million in 2017. Shinhwa World’s casino measures 5,775 square meters and, for the first half of this year, GGR hit HK$2.4 billion. The jump stems from more than size. Executives cite room availability as a key advantage of operating a casino where your company controls the hotel. If you want to bring in a VIP, or one shows up unexpectedly, you don’t have to beg for rooms from a different ownership with its own priorities. Landing has taken advantage of Landing Casino