This is what we need ... let's support the Reef Hotel Casino

As reported in the Cairns Post
May 26, 2015.



BOOM TIMES: Million-dollar upgrades and other incentives to draw more people to the Reef Hotel Casino are in the works, exciting chief executive Allan Tan.

 MILLION-dollar upgrades and other incentives to draw more people to the Reef Hotel Casino in Cairns are being planned as the owners report a rise in revenue this year.

An 8 per cent increase in income for the first four months of 2015 follows the Reef Casino Trust reporting a $1.8 million drop in profit – including costs of more than $600,000 incurred with the failed Aquis takeover bid and a 16.1 per cent fall in visitor numbers last year.

But a good start to the new financial year has prompted casino boss Allan Tan to roll out plans to improve trade, including:

● Upgrades of the hotel and casino lobbies, the Vertigo Bar and Show Lounge;

● Refurbishment of the flagship Tamarind restaurant;

● New and improved Reef Club loyalty and VIP programs:

● Trips to Singapore to drum up business to coincide with SilkAir direct flights starting on Saturday;

● New staff uniforms to be rolled out over two years;

● New airconditioning system including chillers and cooling towers;

● New electronic gaming machines.

BIG PLANS: A good start to the new financial year for Cairns’ Reef Hotel Casino has prompted a suite of million-dollar upgrades for the premises.

Mr Tan said from January to April trust rental income was up 8 per cent, while trust chairman Ben Macdonald said distributable profit to unitholders was ahead of this time last year.

The outlook for electronic gaming and slot machines was “positive”, while the anti-corruption crackdown in China was not expected to impact on table games favoured by the Chinese tourists, Mr Tan said.

He said the falling Australian dollar was drawing more tourists, while the SilkAir flights would bring more Asian travellers.

Mr Macdonald said no one else was attempting a takeover bid for the CBD hotel and casino, and it was now “business as usual”.

According to the annual report, the work involved with the Aquis transaction over the past 12 months and part of 2013 cost the trust $877,000 in legal and management costs.

Mr Macdonald said economic conditions in Cairns remained “soft”.

“However, the Australian dollar is generally lower and, hopefully, this will be positive for Cairns’ tourism,” he said.

Mr Tan said last year electronic gaming turnover was up 10.8 per cent and revenues by 12.5 per cent due to strong local, domestic and international support but table game revenues fell 25.7 per cent, mainly because of the cessation of direct flights from China and a fall in high rollers.

He said hotel room revenue increased 6.2 per cent but food and beverage decreased 1.1 per cent. The venue employs 465 people.