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Tuesday Nov 26, 2024
Tuesday, 22 October 2013 00:21 - - {{hitsCtrl.values.hits}}
Q: Can you explain Crown Ltd.’s plans for Sri Lanka?
A: Crown has proposed to develop a world class luxury resort on the Beira Lake, with approximately 450 five-star guest rooms and suites centred around a diverse entertainment and leisure offering. I have no doubt this project will become a ‘must see’ icon for international travellers. We have established a website so the Sri Lankan people can see our plans for the resort. Please refer to www.crownsrilanka.com for a comprehensive overview.
Q: How does Sri Lankan project fit into the global plans of Crown?
A: Crown is firmly focused on being a global luxury tourism brand with a particular focus on Asia. The Indian subcontinent is a region that Crown believes is poised for future tourism growth and we believe that Sri Lanka has the mix of location and natural appeal as a destination that can capitalise on the macro economic trends that the Asian region will experience over the next 20 years; namely a rising middle class and a consumer that desires new and exciting experiences.
Q: What would Crown’s venture bring to Sri Lanka?
A: Integrated resorts of this nature are a proven driver of tourism and will help to increase the appeal of Sri Lanka as a destination to a class of consumers that are currently bypassing the country. In addition Crown will employ approximately 2,500 individuals at the resort and provide quality training and support for job seekers in the hospitality and tourism industry. Sri Lanka will of course benefit greatly from the business investment that the project attracts and the economic multipliers that will flow through the economy including tax revenue.
Q: What has been Crown’s experience in new markets in terms of project facilitation and concessions, if any?
A: Crown has successfully developed resorts throughout Australia and currently has one of the most robust global development pipelines in the industry. Competition between destinations to attract the best resort operators is fierce, with governments and tourist authorities recognising these sorts of resorts are critical pieces of tourism infrastructure that bring major benefits to the cities they operate in.
Q: How would you respond to criticism that Crown’s project has been given undue concessions, especially tax relief?
A: It’s disappointing to hear those claims, which seem more about politics than the commercial realities that relate to this globally competitive business.
The 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.
Crown operates in a highly competitive industry where we compete not only with the quality of our assets and services, but with the comparative economics associated with other destinations that are available to our 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.
Q: In Crown’s opinion, are tax concessions important to attract planned mega investments?
A: Yes
Q: The Government plans to have at least four major gaming operators. For a small country such as Sri Lanka and a targeted tourist figure of 2.5 million only by 2016 or 2020, are four projects too many?
A: Our understanding is that there are only two gaming operators that can qualify to develop new resorts and as you know we have partnered with Rank. In terms of the overall capacity, the answer depends upon the nature of the projects and their location. Four large-scale projects is certainly too many for Colombo at this time.
Q: In an industry of four operators and given the country’s own weaknesses/challenges, how confident is Crown about success in Sri Lanka?
A: Crown believes that Sri Lanka’s best days are ahead of it. Tourism can be a meaningful growth platform for the country and a means of diversifying the economy. The convenience and appeal of Sri Lanka in the Indian Subcontinent is something that Sri Lanka has yet to leverage from a tourism perspective as you need to have quality assets to market. As you know Crown is not unique in this belief as other hotel operators are developing facilities in Sri Lanka as well.
Q: What are Crown’s views on the ill effects of gaming in a country? Can you also comment on Crown’s Responsible Gaming initiatives briefly?
A: Crown at all its resorts takes the issue of responsible gaming extremely seriously and is a world leader in measures and innovations that protect vulnerable individuals. Crown devotes enormous resources to support our Responsible Gaming programs and works very closely with charitable organisations such as the Salvation Army and Mission Australia on harm minimisation measures and further supports the communities we work in through our extensive charitable efforts. Crown recognises our responsibilities and will commit to being a best practice operator in Sri Lanka.
Q: Sri Lanka doesn’t have a gaming regulator or proper legislations. Are both critical for the success of Crown’s project in Sri Lanka?
A: Crown has 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.
Q: As a global/regional gaming business, what other regulations does Crown have to comply with?
A: Being regulated in four states in Australia, Macau, London, Nevada and Pennsylvania, not to mention our public stock exchange listings (ASX, HKEX, NASDAQ), Crown has robust internal controls and compliance procedures.
