South African gaming, hotel and entertainment group Peermont plans to develop a new casino, hotel and conference facility in Richards Bay and a new hotel and conference facility in Klerksdorp.

Peermont said on Friday it has a casino licence bid commitment to construct a hotel and certain ancillary facilities adjacent to its casino in Empangeni, KwaZulu-Natal.

A feasibility study was undertaken to establish the viability of the casino and new facilities in Richards Bay leading to the decision to relocate the Tusk Umfolozi Casino at Empangeni to Richards Bay - the fastest growing metropolitan area in South Africa. 

The new casino, hotel and conference facility in Richards Bay, to be constructed at an expected cost of R220 million, is designed to include 300 slot machines, 16 tables, a Metcourt hotel consisting of 80 rooms and suites, a 400 seat conference center, a restaurant and show
bar.

The company has tendered for land in Richards Bay and, if successful, will immediately commence the process of obtaining the necessary Environmental Impact Assessment approvals.

Subject to the necessary approvals from the local authorities and the KwaZulu-Natal Gambling Board, construction is expected to commence in the second quarter of 2008 and the resort is planned to open in the last quarter of 2009.

In Klerksdorp, Peermont is required to construct a hotel and ancillary facilities at its Rio Casino as part of a casino licence bid commitment made to the North West Gambling Board (NWGB).

Following market research and a feasibility study as to the optimum size for the hotel, Peermont has approved the construction of a 70 room Metcourt hotel, a 300 seat conference centre, a new restaurant and an enlarged kitchen to serve the increased requirements of the complex.

The total cost of this project is budgeted at R65.5 million.

Construction is expected to commence in the last quarter of 2007 and the resort is planned to open in the last quarter of 2008, subject to the necessary approvals from the local authorities and the NWGB.

Anthony Puttergill CEO of Peermont said both the Richards Bay and Klerksdorp regions are currently experiencing rapid economic growth, which he believes will underpin sustainable demand in the years ahead for our expanded hotel, gaming and conference facilities in these
areas.

"The fact that both hotels are larger than required in terms of our casino licence bid commitments is evidence of our confidence in the growing demand for hotel rooms as a result of increased domestic and international tourism levels in South Africa," he added.

Both developments will create a variety of new employment opportunities for local citizens and will contribute to the growth of local, regional and international tourism in South Africa, he added.
 

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