S.Korea bets on IRs to boost tourism

The South Korean government is counting on integrated resorts to help it to achieve its tourism goals and has called for a concerted effort to expedite the approval process, according to a research note from Standard Chartered.
The bank says the government is preparing a master plan for IR projects and is streamlining the casino license bidding process during the second half of this year.
The administration is seeking to double the number of inbound tourists by 2017.
According to Standard Chartered, the government is expected to seek to create casino clusters with the new licenses likely to be granted on Yeongjong island. It sees 2 to 3 new licenses being allowed there.
“We expect Yeongjong to be centre stage for IR development in Korea, which could expand into a major tourist destination in northeast Asia,” the note said.
South Korea’s Paradise Entertainment is likely to be best placed to benefit from market growth, as it will enjoy first mover advantage when its IR opens on Yeongjong in 2017.
Caesars Entertainment in March was also granted preliminary approval for a $2.2 billion resort with the Lippo Group.