SEOUL, Feb. 16 (Korea Bizwire) — Las Vegas Sands Corp., one of the world’s leading casino and resort developers, officially announced on February 13 at the Busan Metropolitan City Office that it plans to develop an integrated resort at the Busan North Port urban renewal area.
George Tanasijevich, CEO of Sands Corp.’s subsidiary Marina Bay Sands, revealed a detailed plan for a resort complex that will be developed on a 34,613㎡ wide block of Busan’s Marine Culture District. The company will be investing up to 5 trillion won (US$ 45.6 billion) in the integrated resort complex that will include casinos, hotels, a business district and convention centers.
Tanasijevich’s announcement drew attention from related Korean industries, as Sands Corp has shown its intent to materialize the plan quickly, as soon as the Korean government decides to lift related regulations such as the prohibition of any gambling activities for Koreans. Existing casinos in Korea are limited to foreigners only, and as such gambling in Korean casinos is off limits to Koreans.
The project is also at the center of attention for its massive economic spinoffs. The integrated resort promises an output multiplier effect (OME) of 7.6 trillion won (US$ 6.93 billion), an income multiplier effect (IME) of 1.1 trillion won (US$ 1 billion) and value added multiplier effect (VAME) of 3.5 trillion won (US$ 3.19 billion). The project is also expected to create 50,300 jobs.
Tanasijevich also predicted that the resort development would result in 389.3 billion won (US$ 355 million) in additional tax revenues for the Korean government. He said that the company’s final investment decision is conditional on the lifting of Korean laws prohibiting gambling activities for Koreans in casinos. Tanasijevich said that the company would implement measures to block out any casino-related negativities such as scams and personal bankruptcies.
Suh Byung-soo, Mayor of Busan, said that it is imperative to develop integrated resorts to draw tourists, and that the project would be beneficial not only to Busan citizens but also to the entire Korean economy. He also promised that Busan would provide needed support for the realization of the project.
The Korean government said in January that it will allow one or two integrated resorts to be developed. However, Sands Corp. said that it will not submit proposals to the government’s request for concepts.
By J.W. Choi (email@example.com)