Jeju Dream Tower moves into profit in 3Q23 as more casino customers fly in
Jeju Dream Tower, the Jeju integrated resort launched by Korea’s Lotte Tour Group in 2021, finally moved into surplus in the three months to 30 September 2023, reporting an operating profit of KRW300 million (US$230,000).
According to details contained within the company’s results presentation, the improved result was due to an Increase in number of visitors and net sales due to the expansion of direct flights to Jeju.
It also pointed to an increase in the number of hotel room nights sold to foreign customers including a higher proportion of casino customers, with a particular improvement in the sale of “Japanese and European charter” products.
Operating revenues for the quarter grew by 101% year-on-year and 26% quarter-on-quarter to KRW96.8 billion, while operating revenues for the first nine months of 2023 combined were up 58% to KRW220.8 billion.
Gaming sales in Jeju Dream Tower’s foreigner-only casino reached KRW52.0 billion, up 395% year-on-year.
The company noted that casino net sales has been climbing in recent months, from KRW 10.3 billion in June to KRW 20.1 billion in July and KRW17.9 billion in August. Casino net sales had increased again to KRW19.8 billion in August, it added.
“Increased sales in the casino and travel sectors led to a decrease in operating losses, and there were no significant one-off factors in 3Q23,” Lotte Tour explained.
The tallest building in Jeju at 38 floors or 169 meters high, Jeju Dream Tower features a retail mall, 14 restaurants and bars, an outdoor pool deck, top floor skydeck with lounge, two spas and a casino boasting 150 tables and 300 slot machines.
The casino was relocated from its former home at the smaller Lotte Hotel Jeju in June 2021 and covers more than 5,000 square meters while offering 141 gaming tables, 190 slot machines and 71 electronic table games.