james packer chogm presentation - 13 nov 2013

8/14/2019 James Packer CHOGM Presentation - 13 Nov 2013

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Crown Resorts13 November 2013

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1. Sri Lanka: Compelling Macro Environment


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Sri Lanka economic outlook

IMF upgraded Sri Lanka to amiddle income country in2010

3 successive years of strongGDP growth: 8.0% in 2010,8.2% in 2011 and 6.4% in2012

GDP valued at US$59 billionin 2012. On track to meettarget of US$100 billion by2016

GDP per capita estimated at

US$5,500 in 2010. By 2012had risen to approx. US$6,200

One of the highest literacyrates in South Asia91.2%


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3.5hrs

2.3hrs

1.3hrs

Major cities within easy travel to Sri Lanka Notable cities

Cities within approx. 1.3 hours Chennai (Madras) Bangalore

Cities within approx. 2.3 hours Mumbai

Hydrabad

Cities within approx. 3.5 hours Karachi Delhi Kolkata (Calcutta) Dhaka

Illustrative5m - 10m

>10m


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Other Asia36

Europe21

MiddleEast139

Maldives

39

SE Asia,

69

130 flights/week

20flights/week

Flights to SL from origin per week

Daily flights from India: Chennai,Mumbai, Delhi and Bangalore

Daily flights from South EastAsia: Bangkok, Jakarta, KualaLumpur and Singapore

Daily flights from the MiddleEast: Bahrain, Abu Dhabi, Doha,Dubai and Kuwait

Source: Colombo airport website; only scheduled flights so likely understated for Charter flights

Significant existing lift and connection to Sri Lanka


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Lonely Planet recently rated Sri Lanka as the number onecountry to visit in 2013

Sri Lanka is one of the most talked about tourist destinationsglobally


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Sri LankaGovernmentpromotingdevelopment oftourism infrastructureand attractions

Government target of2.5 million touristarrivals by 2016

Requires touristarrivals to grow by

24% annually from2011 to 2016 on acompounded basis

Actual

1.01m

2.50m

3.52m

0.0m

0.5m

1.0m

1.5m

2.0m

2.5m

3.0m

3.5m

4.0m

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23

(annual arrivals by year; fcst and actual)

Source: Sri Lanka Tourism Board; assume linear growth between now and 2016 and five percent thereafter

Stated tourismgoal

Sri Lanka tourismtrends

Sri Lanka visitor arrivals2009-2023

Sri Lanka tourism outlook


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2. Asian Tourism Opportunity


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9Source: IMF forecast; Innovation group; CLSA

$3.03t

$0t

$1t

$2t

$3t

'86 '91 '96 '01 '06 '11 '16

FCST

Growing exponentially quicklyIndia GDP USD trillions

Indias burgeoning middle class

population

Size of Indian middle class estimatedat around 170 million1. Expected togrow by 40-50 million per annum overthe near term

McKinsey Study estimates that by2025 there could be 580 millionmiddle class individuals in India2

With rising middle class affluenceleisure related purchases such astravel are capturing a larger

proportion of consumer spending

1 Source: Indian National Council for Applied Economic Researchs

(NCAER) Centre for Macro Consumer Research report, 2011

2. Source: The Bird of Gold: The rise of Indias consumer market,

McKinsey Global Institute , May 2007

Indias GDP has been growing exponentially since 2000, a trend

resulting in a burgeoning middle class


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4.4 4.6 4.9 5.46.2 7.2

8.39.8

10.9 11.1 13.014.0 14.9

20.0

50.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 2020

2000-2012 CAGR: 11%

Indian outbound travel

has grown at a

compound average

growth rate (CAGR) of

11% from 4 million in

2000 to 15 million in

2012.

The United Nations

World Tourism

Organization estimates

Indian outbound travelto reach 50 million by

2020

Indian visitation

trends

Indian outbound tourism market2000-2020

Source: Government of India, Bureau of Immigration, UNWTO

Indian outbound travel market is growing strongly

(Millions of travellers)


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There are over 300 million middle class individuals in China alone - equal to the entire

population of the USA

By 2030 China is expected to have 1.4 billion middle class consumers compared to 365

million in the USA and 414 million in Western Europe

Source: Forbes: 2011

The rising Chinese middle class


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Outbound travel is one of the

preferred leisure activities for

Chinas middle class amid

rising spending power

In the year 2000, just over 10

million Chinese tourists

travelled abroad

Outbound travel rose to 70

million people in 2011

CNTA estimates China

outbound travel to reach 100

million people by 2015

10.5m12.1

16.6

20.2

28.931.0

34.5

41.0

45.847.7

57.4

70.0

83 million

100

0

10

20

30

40

50

60

70

80

90

100

110

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015

12

China outbound travel trendsChina outbound tourism market2000-2015

Source: China National Tourism Administration CNTA & 2015 forecast by China National Tourism Association

Growing Chinese middle classincreasing propensity to travel



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A 2011 McKinsey study found that the rapid increases in wealth,

and the shifting social conventions that sanction the display ofthat wealth, are driving a growing infatuation for luxury goods

By 2015 China will account for 20% of the global luxurymarket

Chinese consumers want luxury travel, hotels, world classrestaurants, high end retail and the opportunity to gamble

Chinese tourists prefer to visit major cities where they can enjoythese luxury experiences

This all helps to explain why Chinese tourists are attracted toluxury integrated resorts

Source: McKinsey & Co Mar 2011

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80% of Chinese travelling outside the country for

the f i rst t ime head for a casino and 90% of Chinese

wh o travel to th e US vis i t Las Vegas

Dr Marc Faber (US investment analyst)

Understanding what Chinas rising middle class want


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3. Singapores Integrated Resorts


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First full year of IRs operation:

Singapores GDP increased by 14.5%in 20101

Employment:

Approximately 22,000 people areemployed by the integrated resorts

Support more than 40,000 jobsthroughout the economy1

1. Sourced from Ministry of Trade and Industry Singapore

Singapore monthly tourist arrivalsPre and post opening of the integrated resorts

Economic and tourism impact ofintegrated resorts

Source: Singapore Tourism Board

Singapores integrated resorts economic and tourism benefits


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Impact on Chinesevisitation to Singapore

Chinese tourists to Singapore2002-2011

The significant increase inChinese visitors to Singaporesince the opening of its IRs to1.58 million in 2011 represents:

An increase of 34.7% on2010

An increase of 68% on 2009(before the opening of theIRs)

IRs open

0.7m

0.9m

1.1m

0.9m

1.2m

1.6m

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Singapores integrated resorts mainland Chinese visitors



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76%

85%

86% 86%

189

218

247257

70

72

74

76

78

80

82

84

86

88

0

50

100

150

200

250

300

2009 2010 2011 2012

Occupancy Rate (%) Average Room Rate (S$)

Impact on Singaporetourism industry

Singapore hotel occupancy and average room rates2009-2012

Overall hotel occupancyincreased over the lastthree years

Averaging 85-87%

compared with 76%in 2009 before theintegrated resortsopened

Source: Singapore Tourism Board Statistics

The entire Singapore tourism industry has benefited


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Prime MinisterLee HseinLoong

Business-wise [the integrated resorts] have donevery well, Mr Lee said.

Revenue-wise the government has done very well.

From an urban planning point of view, it has done a

lot for our skyline ... its helped our image

enormously.

The Prime Minister said it became imperative tobuild the two projects or lose out to rival jurisdictionsin the region.

As the world was developing, as the business was

developing, the casino became the integrated resort

businessnot just making it a place to gamble.

PUBLISHED: 13 OCTOBER 2012,AUSTRALIAN FINANCIAL REVIEW

SingaporePrime Ministers recent comments

C R t


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Crown Resorts13 November 2013

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james packer chogm presentation - 13 nov 2013

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