Tourism experts: South Korea needs more, better integrated resorts
At the Korea Times Global Business Club in Seoul, hospitality expert Yoon Tae-hwan observed that 70% of patrons at IRs in South Korea hail from China and Japan. That customer base is likely to be depleted when new IRs debut in the region.
In 2030, Japan will welcome its first legal casino, MGM Osaka. Then there’s Thailand, which is fast-tracking a legal casino industry in the Singapore model, with five locations around the country. Thai lawmakers say that market could break open even sooner than Japan.
At the same time, casino operators in Macau and Singapore have agreed to boost non-gaming amenities as part of their concession renewal agreements. South Korea has to step up its game to compete with those jurisdictions, said Yoon, a hospitality professor at Dong-Eui University in Busan.
IRs: The total package
Casino gaming is typically the bread and butter of IR revenue. But non-gaming attractions—hotels, theme parks, cultural exhibits—create a something-for-everyone experience and encourage longer stays. Meetings and conventions draw groups of domestic and international visitors, blending recreational and business tourism.
“These non-gaming features are essential in crafting a resort’s identity,” said Yoon in his keynote. They have helped other markets boost tourism and “diversify their economies,” and should be a key part of Korea’s strategy.
Macau’s six concessionaires have agreed to invest around $15bn (£11.4bn/€13.7bn) in additional attractions as part of their 10-year concession renewals.
Singapore’s two IRs will spend around S$9bn to build new tourism and MICE facilities. According to the Ministry of Home Affairs, those additions will help them “remain competitive with other destinations in the region.”
Inspire Entertainment Resorts, which opened in Incheon in March, could serve as a prototype for South Korea.
Korea’s newest IR banking on entertainment
Inspire is emphasising entertainment to generate business. The 15,000-capacity Inspire Arena—South Korea’s largest multipurpose arena—has hosted global pop and rock stars like Linkin Park and Westlife. It has also has become known as a K-pop mecca.
From March through June, the IR at Incheon International Airport generated net revenue of $101.1m. That spurred record-breaking third-quarter net revenue for the Mohegan Tribal Gaming Authority (MTGA), up 21.4% year-on-year.
The casino is booming too. During its quarterly filing, MTGA said casino traffic at Inspire has increased every month since the 5 March grand opening. It tallied almost 16,000 visitors in March, 19,300 visitors in April, 25,000 in May and more than 27,000 in June.
Si: Korea can be “global leader”
Inspire President Chen Si spoke at the symposium Tuesday.
He said IRs are “not only about entertainment and hospitality,” but about “creating sustainable growth, fostering international collaboration and providing novel, unparalleled experiences to visitors from all around the world.
“I believe that the Korean-style integrated resort business can become a global leader by leveraging the unique strengths of Korean culture and creativity, embracing new technologies, and prioritizing environmental sustainability.”