Gold Coast second casino: Witheriff report says $2B Star masterplan ‘not a new drawcard’

A long-awaited report into the proposed Global Tourism Hub has thrown doubt over whether Star’s $2 billion masterplan will boost the Gold Coast’s tourism market.

A LONG-awaited report into the proposed Global Tourism Hub has thrown doubt over whether Star’s $2 billion masterplan will boost the Gold Coast’s tourism market.

The report by respected businessman John Witheriff and an advisory panel, released yesterday, analysed the results of consultation with the community and business about a proposed second casino and resort complex.

READ THE FULL 65-PAGE WITHERIFF REPORT

Kate Jones Picture: Glenn Hampson

Tourism Minister Kate Jones has said the State will initially exclusively negotiate with Star Group over its proposed expansion of Broadbeach Island and its offer of a $100 million upgrade of the convention centre “out of respect for its investment” in the city.

“What you have heard from John WItheriff is that the Gold Coast community understands we need new investment in tourism infrastructure to grow the industry and create jobs,” she said.

“We have decided we will approach Star to exclusively deal with them so they can provide detail of their offer.

“The Government will examine this offer and make a decision.”

Artist impression of The Star Gold Coast's masterplan. Image: Supplied

STAR ‘MUST PUT UP OR SHUT UP’

But the Witheriff report warns that Star’s proposed development might not be enough to reverse a near-20 per cent decline in the city’s lucrative Chinese tourism market.

“Despite the significance of the proposed development, many suggest the project, in isolation, is unlikely to shift the dial for the Gold Coast’s international tourism agenda,” the report said.

“While it provides additional residential development and tourist accommodation, it does not provide a new drawcard to attract international visitors to the Gold Coast in its own right.

“The relative investment in their two southeast Queensland facilities suggests the Gold Coast will play a supplementary role to Brisbane’s Queen’s Wharf and not be an international tourist attracter in its own right.

The report says Star’s project will “not be an international tourist attracter in its own right”.

“Without significant new investment on the Gold Coast to develop new product offerings and attractions, the region will not receive the tourism growth required to meet its own tourism objectives.”

Star last month offered to pay up to $100 million for a much-needed expansion of the Gold Coast Convention and Exhibition Centre, upgrade its Sheraton Mirage property at The Spit, and contractually commit to the rest of its $2 billion Star Gold Coast masterplan, which has a State Government green light for five more towers on top of the existing Star Grand casino hotel and Darling suite hotel.

This came despite multiple overseas organisations, including Hard Rock and Caesars, initially expressing interest in bidding for a second casino licence, which was created by the Newman government in 2012.

John Witheriff

Mr Witheriff, who was commissioned in March to draw up a report, said it was based on 38 face-to-face meetings, individual submissions, surveys and four focus groups as well as community groups opposed to the project.

He said the results were clear.

“Gold Coasters don’t just want a second casino, they want an asset that will act as an attracter,” he said.

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Star will launch negotiations with the State Government

“If you just whacked up another hotel, Gold Coasters could take or leave that, but this community is smart, they understand what is going on and that is 92 per cent of our tourism comes from the domestic market.

“There is real opportunity to grow the international market where we have seen a decline in growth compared to other parts of Australia which have seen growth.”

New tourism data released this year revealed the Gold Coast’s domestic tourism numbers were up 16.8 per cent, but international visitor numbers dropped 2.1 per cent to around 1 million people. While China remained the Coast’s largest international market, the number of visitors fell 17.1 per cent.