The casino developer, Emfuleni Resorts, has abandoned the Port Elizabeth Boardwalk development that had been proposed. The decision to scrap the project came after the Eastern Cape Gambling and Betting Board made the decision that the Boardwalk casino licence would not be extended.
Twenty Year Casino Licence Extension Refused
The development in Port Elizabeth will not take place because it was contingent on the Eastern Cape Gambling and Betting Board agreeing to extend The Boardwalk casino licence for an additional 20 years. The current licensing agreement for 15 years has only nine years remaining. The amended licensing request would have had the casino licence extended from October 2nd, 2025 for a minimum of another 20 years.
Emfuleni and the Boardwalk Consortium needed the extended licensing agreement in order to ensure that the large amount of funds that would have been invested would be recouped and a profit could be made in the long-term. In addition to the return on investment, Emfuleni would also have been able to secure better long-term shareholder loans in order to fund the development.
Port Elizabeth Boardwalk Precinct Development
The planned R1.3 billion Boardwalk Precinct development would have been the biggest tourism and hospitality project in Port Elizabeth. During the construction of the development, it was projected that approximately 1,500 jobs would be created. After completion, the development was set to create thousands of jobs up to a potential 8,500 positions.
The Boardwalk Precinct development would have included a 35,000 square metre mall that would offer restaurants, niche retails, entertainment, and more. The mall would have been built around a water feature and the new Sun Park. In addition to the mall, a large area was to become a multi-purpose events venue, entertainment in the form of Magic Company, which would include bowling, and Laser Tag, along with movie theatres, corporate offices, and parking bays.
Sun International and Emfuleni had invested over R500 million in order to develop the Boardwalk in 2000. An additional R1 billion was invested more recently, which resulted in extending the licensing agreement to 2025. The recent investment improved the conferencing facilities and the hotel on the Boardwalk.
Michael Farr, the GM Brand and Communications of the Sun International Group, commented: "An investment of this size - which would have been the largest ever in tourism and hospitality in Port Elizabeth, amply demonstrated our belief and confidence in the long-term potential of the Metro and the Province. However, without the amendment of our casino licence and the commercial viability and security of tenure that would bring, the project cannot go ahead. Taken together with the licensing of Electronic Bingo Terminals (EBTs) in our catchment area and their impact on our revenue, our business is already under too much commercial pressure."