for Growth Nigel Morrison 27 March 2012 Introduction SKYCITY - - PowerPoint PPT Presentation
Opportunities for Growth Nigel Morrison 27 March 2012 Introduction SKYCITY Strategic Growth Projects Auckland and the New Zealand International Convention Centre Adelaide Casino ~ Transformation into a world class Integrated
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SKYCITY Strategic Growth Projects
Auckland and the New Zealand International Convention Centre Adelaide Casino ~ Transformation into a world class Integrated Entertainment Complex. SkyCity Darwin ~ The Northern Territory’s Integrated Resort. “Horizon” SkyCity's International VIP Offering.
Australian Corporate Activity and Industry Rationalisation.
Industry Landscape
Q and A
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For well over a decade the convention industry has recognised the need for a national convention centre, with numerous reports and studies having been commissioned, including some by the Auckland City Council In July 2010 the MED called for expressions of interest for delivering the NZICC. This expression of interest was open to all parties. SKYCITY was selected by the NZ Government as its preferred developer of a 3,500 seat New Zealand International Convention Centre on 12 June 2011 SKYCITY’s proposed 3,500-seat New Zealand International Convention Centre will give New Zealand an opportunity to compete in a significant growth market
Allow Auckland to compete with other cities in Australia and South East Asia Create around 1,000 construction jobs during its development Once fully operational, create around 800 new jobs and Inject an estimated $90 million a year of extra spending by international visitors into the NZ economy
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The New Zealand International Convention Centre will generate significant economic benefits for Auckland and New Zealand
183,000 expected total delegates to Auckland generating approximately 350,000 delegate days (Source: Horwath) These delegates will generate an additional 101,000 visitor nights for Auckland. Convention visitors spend more than $650 per night in Auckland, around double the average visitor spend Auckland International airport will benefit from the expected 28,000 international arrivals annually
NZICC is a critical piece of infrastructure to create a step-change in the conventions segment and act as a catalyst for other tourism infrastructure growth including additional hotels, restaurants, bars, retail and attractions.
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The development will be an important step towards making Auckland an events capital and a visitor destination (consistent with ATEED’s strategy and Tourism NZ’s strategy)
Bring conferences to Auckland that exceed 1,000 delegates, which currently do not come to NZ Currently New Zealand attracts just 30 of the world’s 8000 major conferences each year New NZICC will ensure Auckland can compete against Australian cities in the international convention market Consistent with the Mayor’s vision for Auckland being the world’s most liveable city and “not second cousins to Melbourne and Sydney” (Mayor Len Brown, Economic Forum, 4 July 2011)
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SKYCITY’s location for the NZICC is a 3.5 acre site bordered by Hobson, Nelson and Wellesley Streets, adjacent to Television NZ The site is located in the CBD within easy walking distance to other related infrastructure Close proximity to:
3,500 four and five star hotel rooms The Edge assets, including Aotea Centre and Civic Theatre The Universities precinct, Art Gallery and Library
Located with easy access to “Spaghetti Junction” minimising any transport-related issues Situated on the edge of a development zone (Rhubarb Lane, Victoria Quarter)
a catalyst for re-development of the CBD
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SKYCITY is prepared to fund the full development costs – an estimated $350m Negotiations continue with the New Zealand Government including:
an early renewal of the Auckland Casino licence beyond 2021 an increase in gaming product to meet demand and provide for future growth – Tables games – Automated Tables – And Gaming machines changes to gaming regulations which increase the efficiency and attractiveness of the
Iconic Architecture. Multifunctional Exhibition space…..
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19.9% 17.7% 0.4% Current smokers Hazardous drinking Problem gambling
2006/07 population prevalence
Source: Ministry of Health: 2006/07 New Zealand Health Survey
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3.3% 1.3% 1.2% 0.4% 1991 1999 2002/03 2006/07
Problem gambling prevalence – all adult New Zealanders
Source: Ministry of Health: 2006/07 New Zealand Health Survey
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SKYCITY Auckland Pubs & clubs Provision of host responsibility information for customers
(13 languages)
Dedicated team of host responsibility staff
Dedicated team
government gambling inspectors with exclusive access to CCTV footage
NZQA-approved host responsibility training for all staff
Specialist staff training on suspicious transactions / loan sharking
Mandatory requirements to prevent and minimise staff problem gambling harm
Six monthly reporting to Gambling Commission
host responsibility performance
Extensive data collection and analysis of host responsibility performance
28+ indicators of problem gambling
Auditable 'gambler of interest' files
Auditable standard operating procedures
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State Government released its Draft Master Plan for the redevelopment of Adelaide’s Riverbank Precinct in October 2011 We are proposing to transform the Adelaide Casino into a World Class Integrated Entertainment facility that will feature:
Boutique 6 star hotel signature international class restaurants and bars a spa and roof top pool lounge precinct International “Horizon” and VIP gaming suites and salons
Working closely with the South Australian Casino Task Force re the future regulatory framework for the Adelaide Casino, seeking:
an expansion in gaming product; Tax rates and certainty – extension of exclusivity; a ‘level playing field’ in respect of casino regulation compared to other Australian jurisdictions
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The SA Government has already committed A$1 Billion within the Riverbank Precinct:
$350m to the extension of the Adelaide Convention Centre - Stage one due by May 2014 $535m to the redevelopment of the Adelaide Oval - scheduled for completion by February 2014, providing a seating capacity of 50,000 $44m towards Riverbank infrastructure (primarily the new footbridge)
The draft Master Plan also includes the adjacent Hajek Plaza being redeveloped into a new ‘Festival Square’ - the city’s future major public meeting place, featuring cafes, restaurants and extensive car parking The SA Centre for Economic Studies has forecast total annual attendance to the precinct to increase from ~400,000 currently to ~1.4 million following the redevelopment Adelaide Casino will be a major beneficiary of the significant developments and investment taking place in the neighbouring precinct
significant increase in foot traffic / visitation positioned in the heart of ‘New Adelaide’
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Preliminary Concept Drawing
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Preliminary Concept Drawing
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The Lagoon Resort is on track to open in mid July 2012 for the Northern Territory dry season and major events
25 luxury, 5 star poolside villas luxury villas two dedicated private VIP “Horizon” gaming pavilions with adjacent VIP villas Massive (2,750 sq metre) heated lagoon pool & sandy beaches day spa/fitness centre complex 2 bars including a swim-up pool bar, plus a poolside restaurant
Strategic location close to Asia - potential for significant International business ~ Singapore / Indonesia. NT Govt now secured Business Class International air flights from Singapore to Darwin. Inpex LNG Platform and pipeline ~ $32 billion. The Lagoon Resort will significantly enhance SKYCITY Darwin’s property position as the premier resort and entertainment destination in the Northern Territory.
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New high-end VIP gaming facilities Horizon Suites and Salons opened in July 2011
four new world-class international gaming salons (12 tables) co-located with four new luxurious hotel suites with interconnecting rooms
SKYCITY Auckland now have a quality product to market internationally and can accommodate 4 times as many VIP groups as we could in our previous International VIP room Horizon has been very well received by both existing and new international VIP players
International business turnover for 1H12 of $1.4 billion, up 26% on pcp and 195% against 1H10 turnover for the FY12 period to 12 February 2012 is up 45% on pcp
SKYCITY plans to roll the ‘Horizon’ brand out to the other SKYCITY properties in Adelaide and Darwin
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Perth Darwin Alice Springs Adelaide Cairns(1) Townsville Brisbane Auckland Hamilton Christchurch(2) Dunedin(4) SKYCITY Queenstown(3) Launceston Hobart Gold Coast Melbourne Sydney Canberra
Western Australia Northern Territory South Australia Queensland New South Wales Victoria New Zealand Tasmania Crown Limited Echo Entertainment Group Limited SKYCITY Entertainment Group Limited Casinos Austria Group Federal Group Lasseters International Holdings Limited Dunedin Casinos Limited
Lasseters Queenstown
____________________ (1) Reef Hotel Casino located in Cairns is owned by ASX listed Reef Casino Trust (ASX: RCT), in which Casinos Austria Group has 42% interest; management company is 50/50 JV between Casinos Austria and Accor (2) Christchurch Casino is owned by Christchurch Casinos Limited, in which SKYCITY Entertainment Group Limited has 50% interest (3) SKYCITY Queenstown Casino is owned by Queenstown Casinos Limited, in which SKYCITY Entertainment Group Limited has 60% interest (4) Through Christchurch Casinos Limited, SKYCITY Entertainment Group Limited has 15% interest in Dunedin Casino Limited
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