Jeju Dream Tower, the integrated resort launched by Korea’s Lotte Tour Group in 2021, has achieved a notable milestone by moving into surplus, reporting an operating profit of KRW300 million (US$230,000) for the three months ending on September 30, 2023. The positive result is attributed to a surge in the number of visitors and net sales, driven by the expansion of direct flights to Jeju.
Operating Profit Milestone:
Jeju Dream Tower, the tallest building in Jeju, marked a turning point by reporting an operating profit of KRW300 million for Q3 2023. This achievement is noteworthy for the integrated resort launched just two years ago.
Factors Contributing to Improvement:
The improved financial result is linked to a significant increase in the number of visitors, with expanded direct flights to Jeju playing a pivotal role. The surge in net sales and the sale of hotel room nights, especially to foreign customers and casino patrons, also contributed to the positive outcome.
Impressive Revenue Growth:
Operating revenues for the quarter witnessed a substantial year-on-year growth of 101% and a quarter-on-quarter increase of 26%, reaching KRW96.8 billion. The combined operating revenues for the first nine months of 2023 showed a robust growth of 58%, totaling KRW220.8 billion.
Foreigner-Only Casino Performance:
The foreigner-only casino within Jeju Dream Tower reported gaming sales of KRW52.0 billion, marking an impressive year-on-year increase of 395%. The upward trajectory in casino net sales in recent months showcases positive momentum.
Casino Net Sales Trend:
The casino net sales exhibited a continuous climb from KRW10.3 billion in June to KRW20.1 billion in July, KRW17.9 billion in August, and a subsequent increase to KRW19.8 billion in September. The sustained growth in casino sales has been a key driver in reducing operating losses.
Jeju Dream Tower Overview:
Standing at 38 floors or 169 meters high, Jeju Dream Tower offers a comprehensive experience with features including a retail mall, diverse restaurants and bars, an outdoor pool deck, a top-floor skydeck with a lounge, two spas, and a casino boasting 150 tables and 300 slot machines.
Casino Relocation and Expansion:
The casino was relocated from its former home at the smaller Lotte Hotel Jeju in June 2021, covering more than 5,000 square meters and offering 141 gaming tables, 190 slot machines, and 71 electronic table games.
Jeju Dream Tower’s successful transition into an operating surplus signifies its growing prominence in the integrated resort landscape. The strategic expansion of direct flights, coupled with sustained growth in casino performance, has propelled the resort to financial success. The achievement reflects the resilience and appeal of Jeju Dream Tower in a competitive market, setting the stage for continued success in the future.