Spain – Caesars adds interest to BCN WorldBy Phil - 28 July 2014
Caesars Entertainment has reportedly entered the race to be one of the six operators to run the six initially resort casinos at BCN World, the casino-centric destination being planned for the Spanish region of Catalonia.
Caesars will invest €500m (US$675m) to develop the casino, surpassing the minimum €300m investment outlined by the government. It would be Caesars’ second attempt to enter the Spanish market, after its bid to develop at the Don Quixote project which was once planned in Castilla la Mancha.
Enrique Bañuelos of BCN World’s developer Vermonte is believed to have reached an agreement with Caesars Entertainment, who joins names such as Hard Rock and Melco Crown. Malaysian operator Genting is also believed to be interested in adding its expertise to the project.
Each casino and hotel will cover 30,000 sq. m. with a tax rate for casinos of 10 per cent on gross gambling revenue. Other firms confirmed include British company Value Retail, who will take care of the commercial areas and invest around €100m and Majorca-based Meliá Hotels who will build a hotel with 3,000 rooms.
The Parliament of Catalonia recently amended the Law that governs Recreational and Tourist Centres, an essential step in launching the macro-tourism, commercial and leisure project that will be built in Vila-seca and Salou, next to Port Aventura.
From a political point of view, the plan has got off to a good start by overcoming what originally appeared to be a difficult obstacle: widespread agreement based on a pact between CiU and PSC and the partial support of ERC. Another key element has been the negotiating effort of BCN World CEO, Xavier Adserà, who has managed to gain the confidence of the Government, the parliamentary groups, local authorities and social agents.
Parliament approved the modification of the Law on Recreational and Tourist Centres, reducing the taxation, which goes from 55 per cent to 10 per cent, and greater urban development freedom.
Hard Rock has said it will construct its largest project in Europe. BCN World estimates that the construction of the complex will create 17,000 jobs, and that once it begins to function, each resort will give work to 5,000 persons directly, which is equivalent to a total of 30,000 jobs when the six resorts are in operation.