JEJU-DO < invest Korea

A view of the Jeju Dream Tower Integrated Resort. (Lotte Tour Development)

According to Pulse by Maeil Business News Korea,

Jeju Island is witnessing a surge in foreign tourists, driven primarily by Chinese VIP visitors seeking a convenient alternative to Macau’s casinos. A tourism industry official said on Monday that “the ease of visa-free entry and the resumption of direct flights after the Covid-19 pandemic have made Jeju a popular destination for Chinese tourists. Many come for the casinos but return repeatedly because of Jeju’s natural beauty.”

The booming number of Chinese visitors, spurred by stricter casino regulations in China, has revitalized Jeju’s tourism sector. Casino operators on the island, particularly those catering to high-spending tourists, have seen significant growth. Lotte Tour Development, which runs the large-scale integrated resort Jeju Dream Tower, has emerged as a major beneficiary.

Lotte Tour Development recorded significant losses during Covid-19 but has rebounded with record-breaking quarterly revenues in 2024. Analysts attribute this success to the company’s commitment to completing the Jeju Dream Tower project during the crisis.

Casino sales for Lotte Tour Development are expected to double in 2024, totaling approximately 300 billion won ($210.53 million) compared to 152.4 billion won the year before, and casino revenue totaled a mere 43.7 billion won in 2022. This growth has translated into a financial turnaround, with the company shifting from an operating loss of 118.7 billion won in 2022 to an operating profit of 36.8 billion won through the third quarter of 2024. The company reported its highest-ever quarterly revenue of 139.1 billion won in that quarter alone, with an operating profit of 22.1 billion won.

While competitors like Paradise Co. experienced a decline in profits during the same period, Lotte Tour Development capitalized on Jeju’s casino boom, solidifying its market dominance. The Jeju Dream Tower, developed at a cost of 1.8 trillion won, features an expansive integrated resort with a casino, hotel accommodations, and retail spaces. Its casino spans 5,529 square meters, making it the second largest in Jeju after Shinhwa World. The resort includes 1,600 rooms and 14 restaurants that cater to a growing number of foreign guests.

For the first time, Jeju Dream Tower’s casino surpassed 100,000 quarterly visitors in the third quarter of 2024, welcoming 107,533 guests. Industry estimates suggest the resort commands over 80 percent of the local casino market in terms of revenue. The increase in casino visitors has also boosted hotel occupancy rates, with the proportion of foreign guests rising from 60 percent in 2023 to over 70 percent a year later.


By Lee Seon-hui and Minu Kim

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (December 17, 2024)