Competition is a good thing, especially in business. Star Entertainment, one of the world’s leading casinos, has been allowed to operate in Sydney, New South Wales, Australia without any competition for over 20 years, but that is all about to change. In 2019, Star Entertainments contract of exclusivity with Sydney will come to an end, and Crown Resorts is already set to capitalize on that opportunity with a mega casino of its own in the works. The new casino will be the crown jewel of Sydney’s inner-city suburb, Barangaroo. The now deceased Kerry Packer had been pushing to build a casino in Sydney for some time but to no avail, and his son, James Packer has picked up the torch, and is running with it.
New and stiff competition always gobbles up a chunk of the profits that would go to a business that has traditionally operated exclusively in an area, and in anticipation of its encroaching competitor, Star Entertainment is planning to add a hotel tower to its casino resort. The new tower will house luxury suites that will service high-roller VIP guests. Star entertainment believes that there is a lack of luxury lodging in Sydney, but the demand is there for such services, and now they want to be able to supply that demand which is spilling over already. If their proposal for this new tower is accepted by the government, then it will stand 200 metres tall, and sit opposite the Darling Harbor. This addition would make the Star Casino a six star integrated resort.
Star Entertainment has already employed partnerships with Hong Kong based companies Far East Consortium and Chow Tai Fook to build a $3 billion resort in Brisbane. Star looks to cash in on this partnership once more to bring its new tower to Sydney. Chow Tai Fook is a company worth billions with a database of customers in the millions. Over a quarter of those customers are considered VIPs, and Chow Tai Fook plans to capitalize on these relationships to direct the burgeoning affluent Chinese middle-class to Sydney, New South Wales, Australia for travel and leisure.
In business, competition probably is never really a romantic idea to the competitors, but for New South Wales this new found competition has to be a cause for celebration. With Crown Resorts coming in the near future, and Star Entertainment planning to expand, this will help its capital city of Sydney on many fronts. The new mega casino will likely bring in hoards of tourists from all over Australia, and of course gamblers. For Sydney and the state of New South Wales this means tax dollars. Also,the construction of Crown Resorts’ mega casino and Star Entertainment’s high-roller tower will create numerous jobs and opportunity for the locals, and also long-term employment for those who will work in the new venues when they are finished products.
Once again, as it relates to business, competition is good thing. It forces a company to self evaluate and improve,and at its best can even products and services more affordable to consumers. Crown Resorts announced its impending arrival to Sydney, and forces Star Entertainment to come up with new innovations to dampen the hit that it will inevitably take in its profits. Because of the upgrades that Star is planning to make, there will likely be a new class of tourist coming to Sydney as the casino magnate reaches a previously untapped market of customers that will come to the improved luxury resort and spend money all over New South Wales. In the future, as Crown Resorts and Star Entertainment duke it out for supremacy in Sydney, they will continue to build on their respective empires, and subsequently build the economy of Sydney.