Landing International, which is buying out its partner Genting Hong Kong in a business that runs a casino on Jeju Island, South Korea, said revenue at the property has surged 16 times in the six months to end June compared with the prior-year period.
In a statement to the Hong Kong Stock Exchange explaining the rationale for the buyout, Landing also said the Jeju Casino has turned from a loss to a profit.
“This signifies the success of Jeju Casino’s change of customer focus and marketing strategy and the strengthened managerial and professional support after the rebranding in January 2015,” the filing said.
“It also reflects the growing potential of the Jeju Casino attributable mainly to the growing tourism and foreign investments in Jeju Province, especially the soaring number of Chinese tourists to Jeju, which increased by 58 percent to 2.9 million in 2014.”
The island lies one-hour’s flight from Shanghai and two and a half hours from Beijing. The government has also designated Jeju Airport as a visa-free entry point for Chinese and has given permanent residency to foreigners who own property worth at least KRW500 million ($418,000) for five years.
All these factors will continue to drive tourism to the island, which is a well-known honeymoon destination among South Koreans, it said.
Landing said one of its goals with the acquisition is also to establish its own brand and presence in the casino industry.
“The Jeju Casino, which has been installed and implemented with operation and control systems consistent with international standards and practice, will provide a good platform for the Group to build up its own brand name and goodwill in the gaming industry, and to develop its own professional team in casino operation and management.
Landing agreed to buy out Genting for HK$864 million ($111.5 million) in July. Genting plans to focus on building its cruise business.
Landing said the acquisition will boost the group’s financial performance by providing access to 100 percent of the revenue and profit stream.