South Korea to attract Chinese tourists with casinos

Together with the cuisine, skin care products and Korean pop entertainment, South Korea is trying to attract more Chinese with its new attraction, casinos.

Casino operators from South Korea are trying to pull in gambling enthusiasts from the Chinese mainland, as a new engine for local tourism growth, as the corruption crackdown in China is scaring many off from Macao, the world’s biggest gambling hub.

To better cater for Chinese gamblers, some casino operators, like the Paradise Co, are hiring Mandarin speaking employees to shed the language barriers, together with other attraction measures and VIP treatment including free flights and limousines and hotel stays to the big spenders.

Lee Hyuk-byung, vice-chairman of Paradise, was quoted by Bloomberg  saying that the premium mass players can be recognized as VIP players and treated better than in Macao.

It is believed South Korea is expected further benefit from the spillover from Macao, as the country is also famous for its traditional attractions including pop culture, fashion, fine cuisine and plastic surgery.

Experts and analysts predict South Korea also pick up most of the gamblers from China’s northern region, while other Southeastern countries, including Vietnam and the Philippines, might embrace more from the southern part of China.

South Korea is expected to grow 16 percent this year, thanks to Chinese gamblers shifting from Macao, according to analyst Karen Tang from Deutsche Bank.

According to the Deutsche Bank Markets Research on the Asia Gaming and Lodging Industry, weakness in big gambling markets, like Macao, means opportunities for mid-sized markets such as Korea and the Philippines as Chinese gamblers travel farther to try new destinations.

Despite 2014 being a tough year for Korean foreigner-only casinos, the concerns over Chinese anti-corruption efforts had a spillover effect on Korea and dampened investor sentiment. The analysts believe Chinese driven long-term growth is still intact and forecasting Korean foreigners-only casino gross gaming revenue to grow 16 percent thanks to the Chinese visitors.