South Korea: Busan casino market flourishes

The Seven Luck Casino at Busan Lotte Hotel and the Casino Busan at the Paradise Hotel combined for a revenue of about us$ 49.1 million through September, which represents an 18 % increase during the same period last year.

The sales total is more than a 45 % increase from the us$ 33.8 million collected through the first nine months of 2006. Casino Busan was the only licensed foreigner-only casino in the city, but saw competition as the Seven Luck Casino opened in June 2006.

For the first time since its opening, the Seven Luck Casino is leading Casino Busan in revenue. Through the first nine months of this year, Seven Luck posted us$ 25.4 million, compared to Casino Busan’s us$ 26.6 million. Visitors to Seven Luck Casino amounted to 93,750, more than double Casino Busan’s 42,550.

The number of foreign tourists visiting the casinos was around 136,000 this year, which is nearly a 55 % increase from the 88,000 during the January-September period of 2006.

The rising number of casino customers is good news for the local economy as they tend to stay longer and spend more than average travelers, according to local tourism officials.

And the competition between the two casinos - who find their main customer pool among Chinese and Japanese travelers - has resulted in the growth of the industry through their improved services and marketing.

Gambling for foreign tourists has expanded in Korea since the amendment of casino rules in 2006 and the industry is expected to further expand due to new rules on investment in Free Economic Zones.

The country has 17 casinos, with the Kangwon Land Casino in Gangwon Province being the only one locals can legally attend.