Friday, August 26, 2011

Reef Casino targets China

The ASX listed Reef Casino continues to post creditable results despite difficult trading conditions in recent years. Profit for the most most recent half year was up 41% on the previous year. Growth  in inbound tourism from China should be a positive for the Casino given the Chinese reputation for gambling. However, it would be good to think that direct flights from China could be closer than a couple of years away given the aviation deal agreed earlier this year.

Café China, the best Chinese restaurant in Cairns became a tenant of the Reef Hotel Casino in mid 2010.
The addition of Café China has assisted our hotel profitability in 2011 besides being an important part of
our casino’s China strategy. While we think direct flights from mainland China are about a couple of
years away, so far in 2011 we continue to see a slow and steady increase in the number of Chinese
visitors to Cairns.
Complex visitations in the first half year were slightly down by 3% because the natural disasters
mentioned earlier caused a drop in tourist numbers including mainland Chinese, Japanese and domestic
tourists.
In the casino, grind (main floor) table games revenues were up 8% while electronic machine revenues
were up 3.9% reflecting higher spending by patrons. Premium play revenues were up 15.3% in part due
to a higher than “theoretical” win rate. Overall, casino rentals paid to the Trust were up 13.6%.
In the hotel, accommodation revenues were up 9.9% due mainly to a better average room rate being
achieved. Our Pullman Reef Hotel Casino continues to lead the 5 star market in Cairns in terms of
revenue per available room. Food and beverage revenues were also slightly higher with better profit
margins being achieved. Overall, hotel rentals paid to the Trust more than doubled.

2 comments:

  1. I'm sure the operational philosophy will fit right in with the Chinese sensibilities. Widespread reports today about the broadcast of Pullman Reef Casino "surveillance camera" footage is right up there with Chinese government spying on their citizens.

    Are these cameras being fed directly to the Chinese military?

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  2. I don't know Outlaw! KS has been too busy trying to find the CCTV footage on YouTube of the pommie backpacker naked pole dancing outside the Asylum backpackers! I understand there is an interesting story in this .....

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