Casino Operator Boss Says Gaming Resort Only Way to Survive (interview)
Nova Gorica, 03 January (STA) - The head of Slovenian casino operator
HIT Drago Podobnik has elaborated for the STA on the company's revived
plans for a giant tourism and gaming resort, arguing it is necessary to
look into the future and provide new content if one is to avoid gradual
death.
Podobnik, who took over the now recovering Nova Gorica-based gaming
company in 2009, said that development needed to accompany restructuring
and that the question puzzling the management had been what the next step
should look like.
$We did not want to repeat the strategic
mistake from the period when the company's revenue began to be dispersed
across countries in the Balkans and even further...We forgot about
investments at home, not only in Nova Gorica, but in Slovenia in
general.$
Podobnik said that HIT had analysed trends in the
industry around the world and the idea for the tourism complex resulted
from the realisation that $it is certain that our leisure periods will
be shortened to three, four days, although several times a
year$.
$It is clear to us that gaming alone is no longer
attractive for guest, as it is in decline everywhere. It will be necessary
to offer something that has local characteristics and will also attract
guests from more remote places.$
He explained that the company's
primary market was saturated with gaming competition and that each new
provider merely changed the distribution of existing or even declining
revenue.
Speaking about the new centre, which is planned near Nova
Gorica by 2019 and comes after a joint venture in a major gaming centre
project with US casino operator Harrah's was shelved in 2008, Podobnik
stressed that the basic idea was a tourist resort which would also have a
lot of non-gaming content $of interest to entire
families$.
$Gaming will account for less than 3% of the
entire surface area and a little more in terms of revenue, but
significantly less than what the share is in our existing
programmes.$
Asked about the financing of the project, which is
estimated at EUR 700m-1bn, he said that the approach, compared to similar
centres around the world that cost several billions, was very
rational.
$It is clear that HIT is not in a position to finance
this project alone. It is also unrealistic to expect that we can execute
some of the non-gamin content as effectively as those who are specialised
in this field...We will look for partners and will need the help of the
government as well as the private sector.$
He said that
potential investors, which are strong global players in the field, had
shown a lot of interest in informal talks. While the owners' and
government's consent is still needed, $the product is entirely in line
with the guidelines of the strategy for gaming in
Slovenia$.
$It is clear to the present management of HIT
that this project is a cornerstone of future existence and
development.$
As regards the government's help, Podobnik said
that in the transitional period and with the existing programme $we
expect changes that will to allow us to hold out in the ever tougher
competition for at least another five to six years$.
In the
future, Podobnik also hopes for changes to the gaming act and for the state
to show a cooperative attitude in $a project that heralds a long-term
development of gaming tourism with additional non-gaming programmes and
puts Slovenia on Europe's map when it comes to such content$.
