Packer eyes another big investment in Perth casino, as Chinese tourism soars

Gaming billionaire James Packer is believed to be eyeing another massive investment in Crown’s casino in Perth, talking with the state Government about acquiring land for a new hotel and entertainment complex.

According to the Australian Financial Review, Western Australia Premier Colin Barnett is supportive of the idea of another hotel for the listed company.

The report follows the casino group’s decisions to change the casino’s name from Burswood to Crown Perth, and Packer’s comments he wanted to do more build up more attractions such as golf course in the city.

Sources close to the project expect Crown to invest under $1 billion, the paper says.

Housing Industry Association chief economist Harley Dale says commercial has outperformed residential property in the aftermath of the global financial crisis.

“If you were to generalise, you’d say commercial has outperformed there and it’s reasonable to take this as another vote of confidence in the medium-term outlook in the WA economy as a whole,” Dale says.

Dale says there are signs that hotels, warehouses and the office sector have good growth outlooks, he says.

“At the same time, you seem to continue getting these ticks in the box for aggregate economic conditions in WA, but there are a lot of sectors – such as residential – that are losing out.”

Packer last year raised eyebrows by saying Australians over-estimated the effectiveness of their tourism campaigns, and risked ignoring the emerging Asian middle-class.

The Crown Perth plans come as official tourism figures show short-term arrival figures were up 0.8% in the year to November but short-term resident departures soared 8.1% over the same period.

The Australian Bureau of Statistics figures, released yesterday, show that the number of tourists from China rose by 19.7% in the year to November 2011, followed by a 6.3% rise from India, a 3.2% rise from New Zealand and a 1.1% rise from Singapore.

Conversely, tourist numbers from the United Kingdom fell by 6.5%, 5% from the United States, 8.8% from Korea and 9.9% from Japan.

Darrell Wade of PEAK Adventure Travel Group believes there’s no question Asia will drive demand in the future. “We are relatively close and have a huge competitive advantage in our open spaces and blue skies – but we will have to work harder and better to make this happen,” he told SmartCompany last year.