On Friday the South African hotel and entertainment group Peermont announced its intention to develop a new casino, hotel and conference facility in Richards Bay, KwaZulu Natal, and a new hotel and conference centre at its Rio Casino in Klerksdorp. The Tusk Umfolozi Casino in Empangeni will be replaced by the new R220 million (US$32 million) facility at Richards Bay, the fastest growing metropolitan area in the country.

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. The facility will include 300 slot machines and 16 gaming tables, an 80-room and suites Metcourt hotel, a 400-seat conference centre, restaurant and show bar.

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 (US$9.53 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 commented: “Both the Richards Bay and Klerksdorp regions are currently experiencing rapid economic growth, which we believe 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, “We believe that our planned new property in Richards Bay will become the entertainment hub of the city of uMhlathuze for both residents and visitors alike. The hotel and additional facilities in Klerksdorp will enhance the attraction of our Rio property and in particular will provide much needed facilities for the corporate and leisure markets. These exciting new properties will be designed and developed to the exacting quality standards Peermont is renowned for.”

Peermont is South Africa’s most empowered hospitality and gaming company. It has an excellent track record in the design, development, management, ownership and operation of multi-faceted integrated resorts. This includes hotels, casinos, convention centres, retail outlets, restaurants, bars and other sport and entertainment facilities. The company strives to set new standards for hotels and resorts that continuously exceed guests’ expectations, whilst giving back to communities in which they are located.

As Anthony Puttergill says of the new projects just announced, “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.”
(E-10.01.07)

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