New casinos expected to create thousands of jobs

International investors among eight bidding for gaming licences

By PHUMZA MACANDA

Business Correspondent

THOUSANDS of jobs, a mega entertainment complex, luxury hotels and budget lodges are on the cards for the Eastern Cape as moves accelerate to open two new casinos.

The casinos will be in the Queenstown-Aliwal North area and Mthatha-Port St Johns region.

Eastern Cape government officials say the two multi-million rand complexes will open their doors to the public by June 2007 and will attract more domestic and foreign tourists to the province.

Although the casinos won't transform those poverty-stricken areas, there are spin-offs for the province.

The casinos are expected to create thousands of the jobs and provide a much-needed boost for the economy.

They will also give the province more muscle to share in the spoils of South Africa's R8,2bn gambling industry. The Eastern Cape currently only rakes in 7,4% of the industry's total revenue, compared to Gauteng's 44,9%.

Eight prospective investors, including international companies, are bidding for the two gaming licences. Some of the bidders are the usual suspects in the gambling industry, but the Eastern Cape Gambling and Betting Board could not divulge the names of the companies.

The bidding process will start in January next year, says the board's chief executive officer Vuyani Mati, and the successful investors will be announced by September. The entire process is expected to take nine to 12 months, as the board will need to give prospective investors enough time to come up with the most suitable proposal, and for communities to submit their comments.

However, construction on the gaming complex is expected to begin by Christmas next year, says Mati.

"Investors want to bring their money to the province."

"The two new casinos will definitely be a positive factor for our economy. We expect thousands of jobs to be created, although we cannot say how many at this point, as that will be determined by the commitments made by the investors."

The province's gaming authorities will favour the kind of investment that will have the power to draw in both local and international tourists and provide an extraordinary entertainment offering.

The province attracted more than 2,5 million foreign visitors in 2003 and 2004, who spent R4,6bn.

But the provincial government believes the casinos, the most lucrative form of gambling, could boost its tourism industry even further.

Economic Affairs MEC Andre De Wet said: "A proposal that will include a hotel or a lodge is desired, but the board will have to decide on that based on the overall impact of the proposed investment. We don't expect the investment to create a big metropolitan area, but we do expect thousands of jobs to be created."

The industry currently employs about 1200 people at its three casinos at Hemingway's in East London, the Boardwalk in Port Elizabeth, and the Wild Coast in Mbizana. Casino revenue in the province jumped from R615m in 2003/4 to R754m in 2004/5, according to the board.

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