The strategy implemented by South Korea’s Lotte Tour Development to drive VIP casino business at its flagship Jeju Dream Tower resort is showing clear operational momentum. According to a research note by South Korea’s Meritz Securities, table drop at Jeju Dream Tower reached KRW 336.4 billion (approx. HKD 1.926 billion) in August, up 19.7% year-on-year and 27.6% month-on-month. Average drop per patron also posted a sharp 35.6% month-on-month increase.
In a research note titled “Effective VIP Rolling Strategy,” Meritz Securities highlighted that Jeju Dream Tower recently raised its maximum table limits—increasing premium gaming table caps to KRW 150 million (approx. HKD 870,000)—and resumed dedicated VIP room operations, successfully stimulating high-roller demand.
Data shows casino visitors at Jeju Dream Tower totaled approximately 59,000 in August, up 3.5% year-on-year. As growth in table drop significantly outpaced foot traffic, the average drop per visitor surged from KRW 4.2 million (approx. HKD 24,300) in July to KRW 5.7 million (approx. HKD 33,000) in August, representing a 35.6% month-on-month gain.
On the gaming revenue front, net casino revenue for August stood at KRW 46.2 billion (approx. HKD 267 million), up 7.5% year-on-year but down 10.4% month-on-month. Meritz noted that as VIP room play comprises a higher share of the gaming mix, monthly hold percentage volatility naturally expands, with August registering a hold rate of 14.8%. Consequently, brokerage analysts emphasize that total casino drop and per-capita wagering are far more vital indicators of underlying performance than single-month net gaming revenue.
In terms of non-gaming synergies, the proportion of hotel room inventory utilized by casino guests reached 51.8% in the second quarter. Meritz considers that the integrated resort retains additional capacity, leaving substantial room for further VIP rolling growth if high-roller repeat visits maintain strong momentum.
The brokerage forecasts Lotte Tour Development’s third-quarter casino table drop to reach KRW 1.0446 trillion (approx. HKD 5.982 billion), marking a 23.1% year-on-year surge and the company’s first-ever single-quarter casino drop exceeding KRW 1 trillion (approx. HKD 5.77 billion). Full-year casino drop is projected at KRW 3.3304 trillion (approx. HKD 19.2 billion), up 20.3% year-on-year.
Meritz further projects full-year total revenue for Lotte Tour Development to rise 15.6% to KRW 755.1 billion (approx. HKD 440 million), compared to KRW 653.5 billion (approx. HKD 380 million) last year. Net casino revenue is expected to increase from KRW 476.7 billion (approx. HKD 280 million) to KRW 568.2 billion (approx. HKD 330 million), while operating profit is forecasted to jump 28.8% to KRW 184.6 billion (approx. HKD 110 million).
A broader tourism recovery continues to provide solid tailwinds for the property’s gaming operations. South Korea welcomed a record 2.093 million foreign visitors in July, up 20.8% year-on-year. During the first seven months of the year, international visitor arrivals to Jeju Island reached 1.468 million, up 15.1%. With international flight capacity to Jeju continuing to expand, coupled with the upcoming Chuseok and Chinese National Day Golden Week holidays, Meritz expects further upside potential in casino visitor volume.
The report cautions, however, that a higher concentration of premium VIP play may magnify monthly hold rate fluctuations. Key factors to monitor moving forward include the sustainability of VIP repeat visitation, Lotte Tour Development’s refinancing conditions ahead of 2027, and potential legislative changes to South Korea’s Tourism Promotion Fund system.
