PDF 25 MB - Sun International | Investor Centre
PDF 25 MB - Sun International | Investor Centre
PDF 25 MB - Sun International | Investor Centre
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SUN INTERNATIONAL ANNUAL REPORT ’10<br />
Our focus for 2011 will be on improving customer service and profitability<br />
margins at our properties; ensuring rigid cost controls and monthly profit<br />
improvement targets; ensuring that headcount and staffing levels are<br />
optimally aligned to unit business levels; an improvement in the quality<br />
and efficiency of our outsourced services; an improvement in productivity<br />
and raising the bar on physical, service and product standards with a zero<br />
tolerance for mediocrity.<br />
Our marketing and promotional spend will be targeted to ensure we<br />
achieve maximum returns on these investments and, in the case of our<br />
resorts, marketing funds will be redirected to those markets and channels<br />
that are showing more promise – Africa, South America and Asia.<br />
MONITOR CASINO REGULATORY ENVIRONMENT<br />
We remain an active participant of CASA and <strong>Sun</strong> <strong>International</strong>’s Chief<br />
Executive, David Coutts-Trotter, is CASA’s current chairman. In the year<br />
under review, CASA’s CEO maintained a dedicated watching brief on the<br />
activities of the Parliamentary Portfolio Committee of the Department of<br />
Trade and Industry which has been researching various aspects of the<br />
gaming industry. The Minister of Trade and Industry appointed a Gambling<br />
Review Commission to investigate and make recommendations regarding<br />
the industry and CASA submitted extensive submissions to the Commission.<br />
A high level meeting was set up between the Commission and the chief<br />
executives of CASA’s members to augment the written submissions. The<br />
Commission’s report had not been released at the time of writing.<br />
CASA also prepared written and oral representations about provincial<br />
gaming legislation which is being amended and maintained constructive<br />
relationships with the provincial gaming boards and the National Gambling<br />
Board.<br />
The collectivity of these interactions have indicated that, from political and<br />
regulatory perspectives, there is an on-going monitoring of the perceived<br />
harmful impacts of casino gambling, in particular, on the socially vulnerable<br />
sectors of the population. The perceptions are generally based on anecdotal<br />
considerations and inputs. It is also apparent, though, that the regulatory<br />
standards of casino gambling rank among the best in the world. The NRGP<br />
continues to attract international attention and acclaim.<br />
44<br />
Licensing developments<br />
Following the conclusion of an extended consultation process, the ECGBB<br />
issued a new licence to Emfuleni Resorts to operate The Boardwalk Casino<br />
and Entertainment World.<br />
The new licence is for a period of 15 years and the group will be investing<br />
R1 billion in a 135 key five star hotel – which will be Port Elizabeth’s only<br />
five star hotel; a conference centre, a new smoking casino, and a 874-bay<br />
parkade on the property. The company will also be upgrading the existing<br />
casino and entertainment complex. In total there will be more than 1 000<br />
slot machines, 27 gaming tables, new restaurants and facilities as well as<br />
a multimedia lake spectacular that will have the world’s longest water<br />
tunnel and one of Africa’s highest fountains.<br />
GrandWest’s initial ten-year casino exclusivity in the Cape Metropole expires<br />
during December 2010. The Provincial Government of the Western Cape<br />
(PGWC) is considering whether to permit one of the casino licence holders<br />
in the Western Cape to relocate to the Cape Metropole and is engaging<br />
interested stakeholders before taking a final decision in this regard. The<br />
PGWC has indicated that it would seek to extend GrandWest’s exclusivity to<br />
enable proper completion of this exercise and any consequential processes.<br />
Insufficient information is currently available to assess the potential impacts<br />
on GrandWest’s revenue and profitability. However, in the event that a<br />
relocation and establishment of a new casino goes ahead, it is likely to be<br />
material to GrandWest once opened, which is unlikely to be before the end<br />
of 2012.<br />
ENHANCE CORPORATE REPUTATION<br />
The group understands and appreciates that stakeholder perceptions shape<br />
its corporate reputation and strives to engage with all stakeholders. A<br />
particular focus in the year under review has been with the group’s internal<br />
stakeholders and the group will focus on enhancing its external stakeholder<br />
engagement in the forthcoming year, while improving on its commitments<br />
to internal stakeholders.
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