Interesting commentary from Star in today's Australian Business

Chinese tourists will come back to Australia, says Star Entertainment boss Matt Bekier

Star Entertainment Group CEO Matt Bekier: ‘Australia was one of the most popular overseas destinations for independent Chinese travellers before Covid and it will be the same after the borders reopen.’ Picture: Richard Walker

• GLENDA KORPORAAL

  ASSOCIATE EDITOR (BUSINESS)

  
• 7:41PM OCTOBER 6, 2021
• 4 COMMENTS
• 

  CHINESE TOURISTS WILL RETURN TO AUSTRALIA AS SOON AS INTERNATIONAL BORDERS ARE REOPENED, ACCORDING TO ONE OF THE NATION’S MOST INFLUENTIAL CASINO BOSSES.

  STAR ENTERTAINMENT CHIEF EXECUTIVE MATT BEKIER WILL TELL AN ASIA SOCIETY CONFERENCE ON THURSDAY THAT RESEARCH COMMISSIONED BY STAR SHOWED THAT CHINESE TOURISTS WERE JUST AS KEEN TO TRAVEL TO AUSTRALIA ONCE INTERNATIONAL BORDERS OPEN AS THEY WERE BEFORE THE BORDERS CLOSED EARLY LAST YEAR IN THE WAKE OF THE PANDEMIC.

  “WE ARE VERY BULLISH ABOUT THE MEDIUM-TERM PROSPECT FOR THE RETURN OF TOURISTS,” MR BEKIER SAID IN AN INTERVIEW.
  

  “RESEARCH WE HAVE COMMISSIONED, ASKING WELL-OFF INDEPENDENT TRAVELLERS FROM CHINA ABOUT THEIR TRAVEL INTENTIONS WHEN THE BORDERS REOPEN, SHOW THAT THEY ARE NOW THE SAME AS THEY WERE PRE-COVID.

  “AUSTRALIA WAS ONE OF THE MOST POPULAR OVERSEAS DESTINATIONS FOR INDEPENDENT CHINESE TRAVELLERS BEFORE COVID AND IT WILL BE THE SAME AFTER THE BORDERS REOPEN.

  “IT IS ALSO IN DEMAND AS AN EDUCATION MARKET FOR CHINESE STUDENTS.”

  READ MORE:STAR PUNTS ON FINDING PARTNER FOR CASINO PLAY|SCENIC TREAT FOR QANTAS’ LONGEST COMMERCIAL FLIGHT

  MORE THAN 1.4 MILLION CHINESE TOURISTS A YEAR WERE VISITING AUSTRALIA BEFORE THE PANDEMIC-DRIVEN BORDER CLOSURES. THEY WERE CONTRIBUTING AN ESTIMATED $12BN A YEAR TO THE ECONOMY.

  NO DATE FOR REOPENING THE BORDER FOR INTERNATIONAL TOURISTS HAS BEEN GIVEN BY THE FEDERAL GOVERNMENT, WITH INITIAL FOREIGN TRAVELLERS EXPECTED TO BE STUDENTS AND SKILLED MIGRANTS. BUT THE GOVERNMENT HAS INDICATED THAT IT COULD BE SOME TIME NEXT YEAR.

  “THE TOURISTS ARE GOING TO COME BACK,” MR BEKIER SAID.

  “I AM VERY CONFIDENT THAT OUR GUESTS WILL RETURN AS SOON AS THEY ARE ABLE TO TRAVEL.”

  HE SAID THIS WOULD BE THE SAME FOR TOURISTS FROM SOUTHEAST ASIA.

  “THE RETURN OF TOURISTS WILL BE THE BACKBONE OF OUR INTERNATIONAL STRATEGY GOING FORWARD,” HE SAID.

  “THEY DON’T LIKE BEING LOCKED DOWN ANY MORE THAN WE DO. THEY WILL COME AS SOON AS THEY ARE ABLE TO GET ON PLANES.”

  HE SAID THIS PATTERN HAD ALREADY BEEN SEEN IN ASIA ONCE INTERNATIONAL TRAVEL WAS REOPENED.

  STAR HAS CASINOS AND HOTEL PROPERTIES IN BRISBANE, THE GOLD COAST AND SYDNEY.

  WHILE ITS PROPERTIES IN QUEENSLAND HAVE LARGELY REMAINED OPEN DURING THE PANDEMIC, THEIR EARNINGS HAVE BEEN DOWN BECAUSE OF A LACK OF INTERSTATE TOURISTS AND THE LACK OF CONVENTIONS – AN IMPORTANT REVENUE DRIVER FOR ITS GOLD COAST CASINO.

  ITS SYDNEY PROPERTY HAS BEEN CLOSED SINCE THE START OF THE NSW LOCKDOWN ON JUNE 25, COSTING THE COMPANY AN ESTIMATED $120M-$150M IN LOST EARNINGS.

  MR BEKIER SAID STAR’S SYDNEY CASINO, WHICH HAS A STAFF OF 4500, WOULD REOPEN ON MONDAY AT 50 PER CENT CAPACITY WITH HOPES THAT IT COULD OPEN FULLY ONCE THE NSW POPULATION WAS FULLY VACCINATED, POSSIBLY LATER THIS MONTH.

  BROADWAY HIT MUSICAL HAMILTON, PLAYING AT THE STAR’S LYRIC THEATRE, IS RESCHEDULED TO RESUME PRODUCTION ON OCTOBER 19.

  MR BEKIER SAID THE STAR HAD USED THE CLOSURE OF THE INTERNATIONAL BORDERS TO CONTINUE DEVELOPING ITS PROPERTIES IN QUEENSLAND AND NSW.

  THE STAR IS OPENING A HOTEL ON THE GOLD COAST AT CHRISTMAS, AND ITS QUEENS WHARF PROJECT IN BRISBANE WILL OPEN AT THE END OF NEXT YEAR. THERE IS ANOTHER HOTEL BEING BUILT AT THE GOLD COAST.

  “WE ARE OPENING A LOT OF CAPACITY,” MR BEKIER SAID. “I AM VERY CONFIDENT THAT THE BULK OF THAT CAPACITY WILL BE THERE TO FILL THE DEMAND FROM ASIA.”

  MR BEKIER SAID HE EXPECTED THAT ATTENDANCE AT STAR’S SYDNEY PROPERTY WOULD STEP UP FOLLOWING ITS REOPENING NEXT WEEK.

  HE SAID EVIDENCE FROM THE STAR PROPERTIES IN QUEENSLAND AND OVERSEAS IN PLACES SUCH AS LAS VEGAS WAS THAT DOMESTIC TOURISTS WERE ALSO EAGER TO RESUME TRAVEL AS SOON AS THEY COULD.

  “WHAT WE HAVE SEEN IS VERY STRONG DOMESTIC DEMAND … IT IS CONSISTENT WITH WHAT YOU ARE SEEING OVERSEAS,” HE SAID.

  BUT HE SAID HE EXPECTED THAT THE CONVENTION BUSINESS AT STAR’S HOTELS AND CASINOS “WOULD TAKE SOME TIME TO COME BACK”.

  HE SAID THE PLAN FOR THE SYDNEY CASINO WOULD BE TO “GO A LITTLE BIT SOFTER” IN THE FIRST TWO WEEKS IN MARKETING ITS REOPENING, GIVEN THE CAPACITY RESTRICTIONS, “BUT ONCE WE GET TO 100 PER CENT CAPACITY, WE WILL GO FULL BORE”.

  MR BEKIER SAID STAR WAS ALSO WATCHING CLOSELY DEVELOPMENTS AT ITS RIVAL CROWN RESORTS, WHICH HAS BEEN SUBJECT TO COMMISSIONS OF INQUIRY IN SYDNEY, MELBOURNE AND PERTH. STAR MADE A $6.6BN BID FOR CROWN IN MAY, BUT WITHDREW IT ONCE THE ROYAL COMMISSION IN VICTORIA BEGAN.

  THE REPORT FROM THE COMMISSION IN MELBOURNE IS EXPECTED TO BE DELIVERED ON OCTOBER 15.