‘Tourist Tax’ holds again Grosvenor Casinos London restoration
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he boss of Grosvenor Casinos proprietor Rank Group mentioned Middle Eastern high-rollers are selecting Paris and Milan over London, holding its venues within the capital again whilst the remainder of the nation recovers.
Revenue for the yr to 30 June got here to £306.3 million for Rank, which additionally owns Mecca Bingo. This was up on the earlier yr however nonetheless 15% under pre-pandemic ranges, principally as a result of London income nonetheless being 26% under 2019.
Over the previous six weeks, efficiency continued to select up throughout a lot of the UK, however London income ticked up by solely 5%.
CEO John O’Reilly informed the Standard that the weak Londn restoration was as a result of an absence of big-spending prospects from overseas.
“That’s a function of higher spending, mainly Middle Eastern, customers not coming into town, or coming in but less,” he mentioned. “We used to have lots of middle eastern customers coming in for seven or eight weeks across the summer. Now they might come here briefly but they mostly stay in Paris or Milan.”
He added that whereas there have been “a lot of moving parts” that contributed, the removing of VAT-free buying gave the impression to be the most important issue.
“You come here, you shop, you eat, you play the tables,” he mentioned. “If they’re not coming to London, because things cost 20% more, that affects everything. It affects casinos.”
Mecca Bingo, in the meantime, was boosted by moist summer season climate forcing folks to search for indoor leisure, with income up 17% up to now six weeks.
“I can’t remember saying to anybody before that Mecca is growing,” O’Reilly mentioned.
The enterprise has additionally confronted labour challenges, particularly in hiring croupiers, as round a 3rd of those workers had sometimes come from the EU. That led to larger workers prices, which performed an element in income being halved, at £20.3 million.
The group expects to see a serious increase when new reforms supposed to spice up the UK’s casinos, together with growing the variety of machines permitted at a single venue and permitting casinos to supply sports activities betting, come into impact. O’Reilly expects these to be in place by summer season of subsequent yr.
Shares are up 1.6%, to 90.8p.