Naga 2 opening to continue bolster Cambodia economy and tourism

Naga 2 opening to continue bolster Cambodia economy and tourism

Hong Kong, 3 November 2017 –NagaCorp Ltd. (“NagaCorp” or “the Company”, together with its subsidiaries, the “Group”, SEHK stock code: 3918), is a world class multi award winning Integrated Resorts and is one of most profitable casino-hotel companies in the world.

Its wholly-owned subsidiary NagaWorld owns, manages and operates Phnom Penh’s only integrated hotel-casino entertainment complex. It owns a casino license with a 70-year tenure (until 2065) and a 41-year monopoly within a 200-km radius of Phnom Penh (until 2035).

The Company is the first gaming IPO on the Hong Kong Exchange, and is the first foreign-owned company with operations in Cambodia ever listed overseas.

In 2016, the Group employed about 7000 employees and contributes 25% of local tourism GDP and about 3% of national GDP of Cambodia. Also, it has raised the international investment profile of its host country and helped attracting Foreign Direct Investments (FDI).

Its founder and controlling shareholder Dr. Chen Lip Keong’s emphasis on managing a “First-World Company in a Developing Nation” with transparency and compliance aligned to global best practices sets the standard of governance for the Company.

In addition, over the years, the Company’s achievement of strong financial success has declared high annual dividends and delivered growth to its shareholders.

 

Today on 3 November 2017, NagaCorp announces a soft opening ceremony of its completion of another expansion projects ie. Naga2 and NagaCity Walk. With the addition of Naga2 and NagaCity Walk, NagaWorld complex will feature a world class Integrated Resort with an investment cost about USD1.5b. Currently, Colliers International (Hong Kong) Limited values NagaWorld Complex (Naga1 + Naga2) at USD5.1b (about HKD39.5b). On 31 October 2017, market capitalization is USD3.52b (about HKD27.3b) and yet Naga Group is free of any debt.  NagaWorld Complex has combined facility of about 1,700 hotel rooms, over 600 gaming tables and 5,000 Electronic Gaming Machines (“EGM”), a 2200 theatre, MICE facility, duty free shopping, numerous dining & entertainment options. The completed NagaWorld facility is expected to enhance Phnom Penh’s appeal as Cambodia’s tourism hub, and contribute positively towards the socio-economic development of Cambodia.

 

The soft-opening will be officiated by Cambodia’s Minister of Tourism HE Thong Khon and all 10 ASEAN Ambassadors to Cambodia in a cocktail cum dinner reception called ASEAN GOLD.

 

NAGA2 and NAGACITY WALK

 

Naga2 has a total built-up area of about 120,000 square meters. It offers 903 exquisitely furnished hotel rooms (including 36 VIP suites), 3,800 square meters of retail space (NagaCity Walk), a world class spa facility (65 spa suites), various F&B offerings, at least 300 gaming tables, at least 2,500 EGM, and a MICE/ Theater facility with 2,200 seating capacity. The NagaCity Walk is an underground shopping facility, linking the existing NagaWorld to the new Naga2. China Duty Free Group, the largest duty-free operator in China has leased the NagaCity Walk since 2016 to operate duty-free shopping on the premises.

 

CORPORATE SOCIAL RESPONSIBILITY

 

NagaCorp has made significant contribution towards Cambodia’s nation building. In 2016, the Company accounted for about 3% of Cambodian National GDP and about 25% of Hotels and Restaurants Sector GDP (Source: Cambodia Ministry of Economy & Finance and Company’s 2016 annual report). Corporate social responsibility and sustainable development have remained as the Company’s hallmark. Its Naga Academy has trained more than 20,000 school leavers under various internship programs from urban and rural areas for hospitality jobs. As at 30 June 2017, the Group had a total of about 7,000 employees, of which over 90% were local Cambodians.

 

PROSPECTS

 

Cambodia continues to attract foreign visitors, benefiting from its appeal as a tourism destination and the abundance of business opportunities that exist in an emerging economy in a country with continued political stability. International arrivals to Cambodia, one of the Group’s business growth drivers, increased 12% to 3.5 million visitors in the first 8-months of 2017. Visitor arrivals via Phnom Penh International Airport grew 23% over the same period. Further, visitation from China grew by 44% to 742,596 visitors, representing the top source of arrivals to Cambodia (Source: Ministry of Tourism, Cambodia). The Ministry of Tourism Cambodia is targeting to attract 7.0 million visitors by 2020, of which 2.0 million are Chinese visitors.(Source: Khmer Times, 4 January 2017).