Integrated resorts to welcome tourists

This is an artistic rendition of the 1.54-trillion-won Inspire Integrated Resort, which will be built by a consortium led by U.S. casino operator Mohegan Sun and Korean chemicals maker KCC Corp., consisting of a casino, a luxury hotel and a shopping area, as well as a K-pop entertainment arena and convention venues, by 2019. / Courtesy of Incheon International Airport Corporation

By Chung Ah-young

Incheon, west of Seoul, is expected to become the epicenter of the nation's tourism industry, following the government's announcement of another integrated resort project in the city last Friday.

The proposed casino resort joins two others currently under construction in the western gateway of Yeongjong Island, Incheon. The Ministry of Culture, Sports and Tourism said a consortium led by U.S. casino operator Mohegan Sun and Korean chemicals maker KCC Corp. has been selected to build the 1.54-trillion-won Inspire Integrated Resort, which will include a casino, a luxury hotel and shopping areas, as well as a K-pop entertainment arena and convention venues, by 2019.

An integrated resort (IR) refers to a business and leisure tourism complex that includes various amenities such as hotels, shopping malls, convention and exhibition halls, performance halls, gaming venues, restaurants and theme parks. Las Vegas, Singapore and Macau boast world-renowned IRs.

The ministry said the latest project, once completed, will help boost the nation's tourism industry by attracting more foreign tourists to the city. The proposed IR will be close to the airport and the capital city of Seoul.

"It is expected to be the Korean tourism industry's edge with various tourism facilities, such as a K-pop arena, a theme park and a convention center," a ministry official said, declining to be named.

The government has pushed ahead with the plan in order to better compete with Asian rivals for tourists and foreign investment. The government vowed last year to draw more than 25 trillion won in investment to boost the tourism industry and enhance corporate competitiveness.

As part of the plan, the government will increase the number of casinos in the nation from 17 to 20 by 2020. Among the existing casinos, only one is open to locals. Korea's casino industry is underdeveloped compared to those of Macau and Las Vegas, which are the world's biggest casino hubs.

Three integrated resorts

Yeongjong will have three IRs — Paradise City, LIPPO & Caesars (LOCZ) and Inspire.

Inspire is the Connecticut-based Mohegan Sun's first attempt at international expansion. The resort, which is under construction inside the Incheon International Airport's International Business Center-II (IBC-II), is expected to be completed by 2019 and to open around 2020.

The new resort aims to attract families and thus will feature theme parks, a 15,000-seat arena and other entertainment facilities, in addition to a casino, which will occupy only 3.7 percent of the proposed complex.

Paradise City, which will open in 2017, is a project of Paradise Sega Sammy, a joint venture between Korean casino operator Paradise Group and Japanese entertainment company Sega Sammy Holdings.

The 1.3-trillion-won project has been under construction inside Incheon International Airport's International Business Center-I (IBC-I) since 2011. The resort's gambling facility will be the largest in the nation, with an area of 11,190 square meters.

A resort by the joint consortium between Las Vegas-based Caesars Entertainment and Indonesian property developer Lippo Group will also open in Midan City on Yeongjong Island in 2018. The 2.3-trillion-won casino resort will feature a 7,700-square meter venue, hotels, dining spaces and other commercial facilities.

Incheon: A Korean tourism hub

Incheon is known as one of the country's leading tourist destinations.

Particularly, Yeongjong Island, where Incheon International Airport is located, is regarded as attractive owing to its vicinity to Seoul, which is less than an hour away by express . In addition, for travelers from northern Chinese cities, it is closer than Macau.

The Incheon International Airport also expects the latest proposed IR to help in its efforts to attract more transit passengers.

"The two resorts — Paradise City, which is currently under construction in IBC-I, and the new one in IBC-II — will help draw more transit passengers to the airport," the airport said.

"Also, it will give us an edge over other rivals in becoming the tourism hub of the Northeastern Asian region."

Like the Changi International Airport in Singapore and McCarran International Airport in Las Vegas, Incheon International Airport seeks to lure 2.3 million passengers in the 20 years after the integrated resorts are built.

The airport said to further enhance the convenience of tourists who use the IRs, it will establish other facilities, such as a private jet terminal by 2020, after consulting with the government.

Synergy

The size of the domestic casino market is expected to grow significantly to 10 trillion won around 2020 when the new IR opens. Currently, the casino market is worth only 1.4 trillion won because only Kangwon Land Casino is open to locals. The foreign casino market in Korea is worth 1.3 trillion won as of 2014. In addition, experts say IRs will increase casino-related tourism revenue tenfold.

According to the Incheon Free Economic Zone Authority, the number of inbound tourists will surge from the current 1 million to 6 million by 2020. In addition, each IR will create some 9,000-12,000 jobs.

"The resorts located on Yeongjong Island might be the ideal destination for foreign tourists, as the region is home to an international airport," a travel agency official said, declining to be named.