Sun International has spoken candidly about the negative impact that the granting of licenses for three Electronic Bingo Terminals in the catchment area of the Boardwalk Casino was having on the PE casino operations.
Chief Executive, Graeme Stephens, was speaking at a public hearing at the Boardwalk on Thursday, where Emfuleni Resorts, which operates the Boardwalk, presented proposals for a R1.3bn mixed use development on under-utilised land in the Boardwalk Precinct
The development by Emfuleni Resorts and partners, Parktown Capital, will include a retail mall, a multi-purpose events venue, entertainment offerings and corporate offices.
But, in his opening remarks, Stephens spoke about the current poor economic performance of the Boardwalk, which he said was the only Sun International property that showed a decline of 12.7% year on year in February.
He said Sun International was putting money into the Boardwalk to keep it afloat adding that the Boardwalk Mall proposal was one way of creating sustainability for the Boardwalk.
Speaking to Algoa FM News afterwards, Stephens said that they had delivered on their bid commitment when they renewed their license and invested a billion rand to create what he said was a very nice hotel and conferencing facilities.
However, he said at the time they had no idea that the Eastern Cape Gambling and Betting Board was going to approve the applications for three Electronic Bingo Terminal operations in the Nelson Mandela Bay.
"These are essentially casinos. The total quantum of slot machines amongst the three licenses adds up to 900 machines which is equivalent to the Boardwalk. And, against a poor economy and with this new EBT situation in the province the Boardwalk is not delivering on the returns originally anticipated. So, we've been scratching our heads of some time to say how can we get extra footfall, how do we create a sustainable environment for the property and it is against that background that we came up with the concept of shopping mall using some land that we still have on the property," Stephens said.
He said they were also seeking a commitment from the ECGBB that "no further casinos will relocate here."
The Boardwalk Mall development is expected to create an estimated 8500 jobs during and post the construction phase.
Emfuleni Resorts Director, Mandla Madwara said a further estimated 1500 direct jobs would be created and sustained once the project is operational, with 500 indirect jobs projected through service providers and concessionaires.
He also added that in terms of preferential procurement they were committed to meeting all BEEE requirements.
Madwara said they would work with 48% local businesses, 22% business owners from previously disadvanted backgrounds and 11% will be local SMME's.
However, he added that in response to pleas from small business owners to increase that percentage, the Emfuleni Board would hold discusions with the main contractor to see how more local SMME contractors could be brought on board.
In terms of its application to the ECGBB, Emfuleni said it was applying for an amendmendment to its casino licence for an additional 20 years beyond its current expiry date of October 2025 in return for this investment.
"In 2000, Sun International and Emfuleni originally invested over R500-million to build the Boardwalk and a further R1-billion to extend its licence thereafter."
"Designed to complement The Boardwalk's other leisure offerings and serve the needs of surrounding communities, the project will provide local residents and visitors with a range of retail offerings, activities and attractions. This will be an essential new component of the broader Boardwalk precinct, identified and earmarked by the Nelson Mandela Bay Metro as an important growth node that will accelerate the Metro's economic growth, job creation and increased returns to the Province," Emfuleni said in a statement.
It said the new development is planned to include:
*A 35 000m² Mall, offering restaurants, high-end convenience, and niche retail with eateries and entertainment. It will be arranged around a revised water feature and the new Sun Park that will be used to support and host special events and entertainment
* A 2 570m² multi-purpose events venue
* A 2 000m² Magic Company including a Laser Tag facility and bowling alley
* 1 832m² of movie theatres
* 4 000m² of corporate offices
* 3 000 Parking Bays
"The Boardwalk Mall will be appropriately and sensitively themed to fit within the urban fabric of The Boardwalk as a whole in terms of both its visual impact as well as the anticipated impact from the expected influx of visitors."
"The Boardwalk Consortium also proposes to provide a more effective and relevant entertainment icon for the City: the vibrant new Sun Park. The Sun Park will occupy an area of about half a rugby field, around and incorporating the revised fountain water feature. It is designed to be a community-centred entertainment zone to stage and host a wide range of activities from sports events to staged concerts, open-air cinema, wine-tastings and corporate launches/tourism exhibitions. The venue will also form part of Sun International's national concert/show circuit."
"The range of restaurants and bars at The Boardwalk Mall will represent a vibrant mix to suit all tastes and all ages, and are spread around the perimeter of the shopping centre. Both fine dining and popular local brands will be offered."
"Retail planned for the Boardwalk Mall will showcase both local and imported goods. Shops will be positioned close to all major public entrances and will appeal to a broad cross-section of residents. Quick service food and beverage offerings will be located close to the proposed Sun Park with easy access to the dedicated children's play area, the crèche, and the Magic Company."
The Chairperson of Emfuleni Resorts, Bongi Siwisa, said "the Boardwalk Consortium believes this development fulfils all the requirements for a considered, well-planned addition to this critical node, and that from the day it opens it will become a popular regional destination attraction for Nelson Mandela Bay. An investment of this size - the largest ever in tourism and hospitality in Port Elizabeth, amply demonstrates our belief and confidence in the long-term potential of the Metro and the Province."
Images: Supplied
