Thursday, February 12, 2015

Sky City doesn't need our money

Currently, Sky City has its hand out for $130 million to pay for its "free" convention centre. Meanwhile, they're spending $360 million to expand their Adelaide casino:

While negotiating with the Government here on its Auckland project, SkyCity Entertainment Group is considering spending more than the A$350 million ($366 million) it originally planned on its Adelaide property.

Announcing the interim result yesterday, chief executive Nigel Morrison revealed a newly expanded plan for Adelaide which the business says would eventually be far bigger than its Auckland casino and entertainment operations. But he did not quantify the exact amount to be spent.

"SkyCity is currently exploring a range of different expansion options including additional Horizon VIP villas and suites and an expanded hotel, which would potentiality increase the costs for the project over the indicative cost of A$350 million," he said.

To point out the obvious: if they've got $360 million for Adelaide, they've got $130 million for Auckland. Its just a question of their priorities. And if they don't want to spend the money in Auckland (because, presumably, its not profitable for them to do so), then I don't see why we should.