Business
8 March, 2024
Casino hits jackpot
THE value of the Reef Hotel Casino in Cairns has grown by nearly $30 million to $161m.
The complex was externally and independently valued at $161m as of December 31, 2023, up from $132m on December 31, 2020.
It comes as senior executives are buoyed with the increasing number of Japanese visitors to the complex, a rebounding Chinese market – especially during the Chinese New Year – and more aircraft and cruise ship arrivals.
The valuation was one of the highlights of the Reef Casino Trust’s annual report. Other highlights included a distributable profit of $10.742m “despite challenges” and a healthy balance sheet that is virtually debt-free.
In the report, chairman Philip Basha said the distributable profit was a solid result and in line with previous pre-COVID yearly results.
“It is lower than 2022 ($18m) which was a record year driven by one-off pent-up post-COVID demand,” he said.
Mr Basha said it would have been $900,000 higher if the trust did not have to reimburse the CaPTA Group for the early termination of its lease for the Cairns ZOOM and Wildlife Dome due to vital maintenance works.
He said the trust received rental income of $26.291m (down from $30.5m) from the Reef Hotel Casino which faced high inflationary cost pressures.
“Trust costs were impacted by higher energy, insurance and maintenance costs,” Mr Basha said.
Mr Basha said capital expenditure in 2023 was carefully managed. Essential capital items were approved to maintain and drive operational growth including new gaming machines and hotel operating assets and maintain the value of the Reef Hotel Casino complex including proper maintenance and overall upkeep of the complex building.
“The Reef Hotel Casino is located in Cairns and is exposed to possible climate change risks, including severe weather events, the health of the Great Barrier Reef and the tourism industry,” he said.
“Whilst these risks are partially mitigated by emergency planning and local engagement, they could result in negative impacts, including upon insurance coverage and capital expenditures.
“Inflation remains high although it may ease a bit while economic and trading conditions remain somewhat uncertain, increased oversight of regulatory matters will require closer management monitoring and effort.
“More airline and cruise ship arrivals can be expected into Cairns and hopefully the return of overseas visitors will pick up further momentum. More conventions can be expected as the Cairns Convention Centre extension is now fully operational.”
Chief executive officer Brad Sheahon said, in the report, that local, regional, Queensland and Australian domestic markets held up well during the year.
“International visitation has improved although it remains below pre-COVID levels,” he said.
He said visitation increased by 17.8 per cent, electronic gaming revenues decreased by 6.3 per cent, table gaming increased by 3.9 per cent, room revenues decreased by 0.2 per cent and food and beverage increased by 4.1 per cent.
PALM Cove has been named the best beach in the world by leading travel magazine and website Conde Nast Traveler.
“The combination of leaning palm trees on powdery sand makes Palm Cove Beach the epitome of a tropical paradise,” said report author Lizzie Pook.
“The town itself, located in the tropical northeast of Australia, near the city of Cairns, the Daintree rainforest and the Great Barrier Reef, is home to only 2000 people, so the sandy stretch is usually free of crowds,” she said.
“Keep an eye out for wildlife though – dolphins and whales can often be seen from the Palm Cove jetty.”
Palm Cove was rated higher than Honopu Beach, Kauai, Hawaii, which was number 2 and third-placed Brekon in the Shetlands. Fourth was Wategos Beach near Byron Bay.
Tourism Tropical North Queensland chief executive officer Mark Olsen said Palm Cove had long been a favourite beach destination for Australian travellers wanting an idyllic tropical getaway.
“The Conde Nast Traveler selection of Palm Cove as the first in this curated list will bring international travellers to its coconut palm-fringed shore to dine in beachfront restaurants and cafes and relax at stunning resorts,” he said.
“With its rainforest mountain backdrop and ancient melaleucas shading the pathways, Palm Cove is a unique paradise that invites relaxation.”
Margaret and Stephen Coop at Melaleuca Resort said they were not surprised.
“It’s beautiful. What’s there not to like about it?,” they said.
“Palm Cove is a real gem. It’s wonderful, we have great restaurants, it’s nice, it’s comfortable, it’s safe.
“Now, (weatherwise) Palm Cove is sensational,” they said.
Annie Gillow of Annie’s at the Beach and Beach Catwalk said she was “obviously very chuffed”.
She said the award was well deserved and she was “partying inside”.
“I am very passionate about Palm Cove and the beach and have been for 16-plus years,” Ms Gillow said.
“The looks on tourists’ faces when they come into the shop. They pinch themselves and ask: ‘Is it always this beautiful’, and I say, ‘yes’,” she said.
Ms Gillow said Palm Cove was always “postcard blue perfect”.
