James Packer CHOGM Presentation - 13 Nov 2013
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Crown Resorts13 November 2013
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1. Sri Lanka: Compelling Macro Environment
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Sri Lanka economic outlook
IMF upgraded Sri Lanka to amiddle income country in2010
3 successive years of strongGDP growth: 8.0% in 2010,8.2% in 2011 and 6.4% in2012
GDP valued at US$59 billionin 2012. On track to meettarget of US$100 billion by2016
GDP per capita estimated at
US$5,500 in 2010. By 2012had risen to approx. US$6,200
One of the highest literacyrates in South Asia91.2%
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4
3.5hrs
2.3hrs
1.3hrs
Major cities within easy travel to Sri Lanka Notable cities
Cities within approx. 1.3 hours Chennai (Madras) Bangalore
Cities within approx. 2.3 hours Mumbai
Hydrabad
Cities within approx. 3.5 hours Karachi Delhi Kolkata (Calcutta) Dhaka
Illustrative5m - 10m
>10m
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Other Asia36
Europe21
MiddleEast139
Maldives
39
SE Asia,
69
130 flights/week
20flights/week
Flights to SL from origin per week
Daily flights from India: Chennai,Mumbai, Delhi and Bangalore
Daily flights from South EastAsia: Bangkok, Jakarta, KualaLumpur and Singapore
Daily flights from the MiddleEast: Bahrain, Abu Dhabi, Doha,Dubai and Kuwait
Source: Colombo airport website; only scheduled flights so likely understated for Charter flights
Significant existing lift and connection to Sri Lanka
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Lonely Planet recently rated Sri Lanka as the number onecountry to visit in 2013
Sri Lanka is one of the most talked about tourist destinationsglobally
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Sri LankaGovernmentpromotingdevelopment oftourism infrastructureand attractions
Government target of2.5 million touristarrivals by 2016
Requires touristarrivals to grow by
24% annually from2011 to 2016 on acompounded basis
Actual
1.01m
2.50m
3.52m
0.0m
0.5m
1.0m
1.5m
2.0m
2.5m
3.0m
3.5m
4.0m
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
(annual arrivals by year; fcst and actual)
Source: Sri Lanka Tourism Board; assume linear growth between now and 2016 and five percent thereafter
Stated tourismgoal
Sri Lanka tourismtrends
Sri Lanka visitor arrivals2009-2023
Sri Lanka tourism outlook
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2. Asian Tourism Opportunity
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9Source: IMF forecast; Innovation group; CLSA
$3.03t
$0t
$1t
$2t
$3t
'86 '91 '96 '01 '06 '11 '16
FCST
Growing exponentially quicklyIndia GDP USD trillions
Indias burgeoning middle class
population
Size of Indian middle class estimatedat around 170 million1. Expected togrow by 40-50 million per annum overthe near term
McKinsey Study estimates that by2025 there could be 580 millionmiddle class individuals in India2
With rising middle class affluenceleisure related purchases such astravel are capturing a larger
proportion of consumer spending
1 Source: Indian National Council for Applied Economic Researchs
(NCAER) Centre for Macro Consumer Research report, 2011
2. Source: The Bird of Gold: The rise of Indias consumer market,
McKinsey Global Institute , May 2007
Indias GDP has been growing exponentially since 2000, a trend
resulting in a burgeoning middle class
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4.4 4.6 4.9 5.46.2 7.2
8.39.8
10.9 11.1 13.014.0 14.9
20.0
50.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 2020
2000-2012 CAGR: 11%
Indian outbound travel
has grown at a
compound average
growth rate (CAGR) of
11% from 4 million in
2000 to 15 million in
2012.
The United Nations
World Tourism
Organization estimates
Indian outbound travelto reach 50 million by
2020
Indian visitation
trends
Indian outbound tourism market2000-2020
Source: Government of India, Bureau of Immigration, UNWTO
Indian outbound travel market is growing strongly
(Millions of travellers)
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There are over 300 million middle class individuals in China alone - equal to the entire
population of the USA
By 2030 China is expected to have 1.4 billion middle class consumers compared to 365
million in the USA and 414 million in Western Europe
Source: Forbes: 2011
The rising Chinese middle class
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Outbound travel is one of the
preferred leisure activities for
Chinas middle class amid
rising spending power
In the year 2000, just over 10
million Chinese tourists
travelled abroad
Outbound travel rose to 70
million people in 2011
CNTA estimates China
outbound travel to reach 100
million people by 2015
10.5m12.1
16.6
20.2
28.931.0
34.5
41.0
45.847.7
57.4
70.0
83 million
100
0
10
20
30
40
50
60
70
80
90
100
110
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015
12
China outbound travel trendsChina outbound tourism market2000-2015
Source: China National Tourism Administration CNTA & 2015 forecast by China National Tourism Association
Growing Chinese middle classincreasing propensity to travel
(Millions of travellers)
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A 2011 McKinsey study found that the rapid increases in wealth,
and the shifting social conventions that sanction the display ofthat wealth, are driving a growing infatuation for luxury goods
By 2015 China will account for 20% of the global luxurymarket
Chinese consumers want luxury travel, hotels, world classrestaurants, high end retail and the opportunity to gamble
Chinese tourists prefer to visit major cities where they can enjoythese luxury experiences
This all helps to explain why Chinese tourists are attracted toluxury integrated resorts
Source: McKinsey & Co Mar 2011
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80% of Chinese travelling outside the country for
the f i rst t ime head for a casino and 90% of Chinese
wh o travel to th e US vis i t Las Vegas
Dr Marc Faber (US investment analyst)
Understanding what Chinas rising middle class want
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3. Singapores Integrated Resorts
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First full year of IRs operation:
Singapores GDP increased by 14.5%in 20101
Employment:
Approximately 22,000 people areemployed by the integrated resorts
Support more than 40,000 jobsthroughout the economy1
1. Sourced from Ministry of Trade and Industry Singapore
Singapore monthly tourist arrivalsPre and post opening of the integrated resorts
Economic and tourism impact ofintegrated resorts
Source: Singapore Tourism Board
Singapores integrated resorts economic and tourism benefits
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16Source: Singapore Tourism Board Statistics
Impact on Chinesevisitation to Singapore
Chinese tourists to Singapore2002-2011
The significant increase inChinese visitors to Singaporesince the opening of its IRs to1.58 million in 2011 represents:
An increase of 34.7% on2010
An increase of 68% on 2009(before the opening of theIRs)
IRs open
0.7m
0.9m
1.1m
0.9m
1.2m
1.6m
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Singapores integrated resorts mainland Chinese visitors
(Millions of travellers)
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76%
85%
86% 86%
189
218
247257
70
72
74
76
78
80
82
84
86
88
0
50
100
150
200
250
300
2009 2010 2011 2012
Occupancy Rate (%) Average Room Rate (S$)
Impact on Singaporetourism industry
Singapore hotel occupancy and average room rates2009-2012
Overall hotel occupancyincreased over the lastthree years
Averaging 85-87%
compared with 76%in 2009 before theintegrated resortsopened
Source: Singapore Tourism Board Statistics
The entire Singapore tourism industry has benefited
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Prime MinisterLee HseinLoong
Business-wise [the integrated resorts] have donevery well, Mr Lee said.
Revenue-wise the government has done very well.
From an urban planning point of view, it has done a
lot for our skyline ... its helped our image
enormously.
The Prime Minister said it became imperative tobuild the two projects or lose out to rival jurisdictionsin the region.
As the world was developing, as the business was
developing, the casino became the integrated resort
businessnot just making it a place to gamble.
PUBLISHED: 13 OCTOBER 2012,AUSTRALIAN FINANCIAL REVIEW
SingaporePrime Ministers recent comments
C R t
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Crown Resorts13 November 2013
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