Crown on casino criticism: More politics than commercial realities
Tuesday, 22 October 2013 00:48
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World famous gaming and leisure brand Crown yesterday viewed criticism against the proposed $ 400 million integrated resort in Sri Lanka as having more to do with politics than commercial realities.
“It is disappointing to hear those claims which seem more about politics than the commercial realities that relate to this globally competitive business,” Crown Resorts Executive Vice President Todd Nisbet told the Daily FT in an exclusive interview in response to the poser that Crown’s project has been given undue concessions, especially tax relief in Sri Lanka.
He said facts tell the real story when it comes to tax. “A 5% revenue tax that has been established in Sri Lanka is actually higher than some of the other emerging markets like Cambodia and Vladivostok. Countries around the region are all looking to capitalise on the rising middle class story and want to capture their fair share of international tourism to help improve their economy and positioning in the region.”
He also said Crown operates in a highly competitive industry where it competes not only with the quality of assets and services, but with the comparative economics associated with other destinations that are available to customers.
“The simple truth is that markets that are not deemed to be appealing and competitive will not be conducive to large-scale investments of the nature that Crown has proposed,” he added.
Crown Resorts EVP also said they have been very impressed with the Sri Lankan Government’s improvements and pace of change since the war. “It may not feel fast enough as a Sri Lankan living with things every day, but the changes just in the last 18 months are significant and tangible. Crown Sri Lanka is not scheduled to open until 2017 and we believe that the Government is committed to supporting a properly-maintained gaming industry and that there is time to implement the required regulations,” Nisbet said.
