The aim is to “establish a new standard for integrated casino resorts not only in Europe, but worldwide”, Melco-Hard Rock consortium was cited as saying by Asian Gaming Brief (Agb).
“The project presents the opportunity to introduce the Melco brand to Europe for the first time, while enhancing Hard Rock’s position as the premier music and entertainment-based hospitality company,” the Macau-US consortium said.
The consortium was attracted to Limassol because the location offers a stable and regulated market, together with the chance to capture the growing number of Asian tourists travelling to Europe on vacation, Agb says. Nevertheless, the main target group would be from the region. “Our studies and analysis indicate that Cyprus’ location and its proximity to important markets such as Israel and the Middle East is ideal for the project,” it said.
Agb estimates that the integrated casino resort will be going after the mass and ‘premium mass’ (upmarket) players from each target country. This group will make up the majority of gaming and non-gaming revenues, and will offerstability and sustainability.
“The European market will rely more on mass and premium mass players,” Michael Zhu, VP of operations planning and analysis at The Innovation Group, was cited as saying.
At the same time, Harmen Brenninkmeijer, managing partner at Dynamic Partners, argued that Melco should also be able to draw VIP players to the Cyprus casino.
“Asian operators are well-placed to bring influential VIP play. These players can make or break a smaller casino, but with the size and experience that Melco has, they can develop a substantial niche market,” he said.
“Today, this market is non-existent and the few markets that attract VIP players are far more expensive and can’t justify the junket payments,” he added. Casino junkets are where VIP players are subsidised to promote particular venues by playing there.
Agb noted the Limassol casino is aiming to attract new tourists to the island and combat seasonality. It makes a reference to the already-thriving gambling industry in northern Cyprus, where there are around 30 casinos and a growing number of top-class venues.
“The resort will bring quality to the island’s casino industry, and the existing casinos should look to upgrade their products and services to capitalise on the potential it will bring,” Umit Or, managing director of Kaya Holdings, said.
Source: InCyprus
