The Government is pushing ahead with a Cyprus casino resort deal which will certainly enhance tourism on the the island.
Cyprus Casino Resort deal almost done
In a bid to attract casino operators to Cyprus, the Cypriot Government invited bids from a number of possible hotel and casino operators. The objective is to procure an attractive Casino Resort to suit the needs of tourism. Back in March three of those operators from a list of eight were short-listed as possible organisations to bid for a casino licence.
Nagacorp Ltd, Bloomberry Resorts corporation and a Melco Hard Rock consortium were all in the running. It was down to the bidders to find a site for the casino. The Melco Hard Rock consortium were looking at Limassol, Bloomberry at Paphos and Nagacorp at Larnaca. According to recent press reports, Bloomberry and Nagacorp were not able to find suitable land for their planned casino resorts.
Obviously the bidders put a lot of time and effort into the feasibility of building a new Casino Resort with hotel accommodation. What we do not know is how these bids were evaluated, that was a matter for the Cypriot Government. What we do know is that Bloomberry and Nagacorp pulled out of the bidding, leaving only one bidder.
Yesterday, the Cypriot Government announced they expect the Melco Hard Rock Consortium to be issued with a licence to build the resort. Furthermore, they hope the licence will be granted by the end of this year.
Casino Resort Specification
The resort specification was required to include 500 luxury hotel rooms, 1000 gaming machines and 100 gaming tables. The winning bidder would also be able to build a satellite casino and three slot parlours in other locations on Cyprus. Also, the winner would be awarded a thirty year exclusive licence. After 15 years, other organisations would be able to compete for licenses. Relevant licences would be granted based on criteria deemed appropriate at that time.
The island is very dependant on tourism and surprisingly, it is currently enjoying a spike in tourist visitor numbers. The provision of a Cyprus Casino Resort will definitely be a boost for the island.
The Melco Hard Rock Consortium was put together by a number of organisations. Melco are the single largest shareholder in Melco Crown Entertainment Ltd. James Packer’s Crown Resorts are also a major shareholder. Melco has casino interests in Macau and the Philippines. In addition, Hard Rock has 202 venues in 71 countries including 11 casinos. By way of experience, they are also involved with Melco in the provision of the City of Dreams Casino Resort in Macau.
Update: 26th June 2017 The contract for Cyprus’ first integrated casino resort, the only one of its kind in Europe, was signed on Monday in Nicosia between the gaming authority and the Melco Hard Rock consortium and is designed to provide for an investment of €500m, attract an extra 300,000 tourists a year, and to add 4,000 jobs.
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