Tourism industry welcomes second attempt at Fiji casino

Transcript

The business community in Fiji is disappointed the country's first casino project has fallen over but is confident the Government will get it right the second time around.

Despite denials from the developer that the licence has been cancelled, the Government says it is looking for a new investor.

That comes as welcome news to the tourism industry which says a casino would help Fiji compete on a global scale.

Bridget Tunnicliffe reports.

The government revoked a 15 year exclusive gaming licence it issued to the One Hundred Sands casino resort project in 2011, after repeated delays to the project. The president of the Fiji Hotel and Tourism Association, Dixon Seeto, says the project would have added much needed 5 star accommodation and a 1,500 seat conference centre.

DIXON SEETO: which would have given us I guess penetration into the larger conference market where it was based ideally [it was ideal] because the other properties on Denarau would provide the accommodation for the people who would attend such large conferences.

The failed $290 million US dollar project was supposed to have been operational in 2013 and has accumulated 1.1 million US dollars in fines imposed by the government after failing to get off the ground. The Minister for Justice Aiyaz Sayed-Khaiyum confirmed One Hundred Sands, owned by American Larry Claunch, had its paper's revoked. He told Parliament the tourism industry is looking forward to a casino and draft laws are in place.

AIYAZ SAYED-KHAIYUM: We do not live in a time warp. We move along, the nation is maturing, the nation is growing, the tourism sector is changing and indeed Madame Speaker, the tourism nature in the world is changing.

Mr Sayed-Khaiyum says the Government is liaising with other countries which have Casino Commissions. But a New Zealand developer who along with a group of Asian investors bought a 50 percent stake in One Hundred Sands in 2013, says the licence has not been cancelled. Tim Manning told the National Business Review last week that there is a dispute clause that says the Government must come to the table within 15 days. He says he's got a strong funder behind him and is confident he can work through the issues. Meanwhile the opposition finance spokesperson, Biman Prasad, says the Government needs to do more due diligence when being courted by overseas investors.

BIMAN PRASAD: It was too good to be true to begin with. It is a very important lesson for Government for the future to watch out and do the due diligence before they give licences to companies which perhaps do not have the capacity or the capability to finally invest that kind of money.

But an Investment Fiji board member Bob Lowres believes the Government will have learnt from its experience with One Hundred Sands. Mr Lowres, who is also the owner and developer of Naisoso Island, says the Government was entering new territory when it issued a casino licence and was probably just a bit naive.

BOB LOWRES: Generally with Fijians they're a very trusting people and we've learnt to our detriment sometimes that perhaps we trusted people we should have investigated a little further. But I'm pleased to see that the government's doing the right thing now and will be calling for a new tender and it will be an open process and proper due diligence will be observed.

Bob Lowres says a lot of things were done with a view to moving Fiji forward prior to the Government being elected and this was one that backfired a little. Meanwhile the Minister for Justice Aiyaz Sayed-Khaiyum says there won't be a referendum on the issue despite some fears that a casino would be alien and people should be asked whether they want one.