Lotte Tour’s Jeju Dream Tower in Jeju
Lotte Tour Development’s foreigner-only casino Jeju Dream Tower still has plenty of room for growth, according to Korean financial group KB Securities – even if the company is expected to report lower earnings for the September 2026 quarter.
In a note, KB Securities analyst Choi Yong-hyun said Q3 earnings would likely fall short of expectations due to external uncertainties, including a crackdown in mainland China on undeclared overseas income. This, Choi explained, follows a downward revision to its 2026 estimates for Lotte Tour after factoring in the policy shifts and the fact that the company’s VIP rolling table business has not yet yielded strong results.
“While the number of visitors to Lotte Tour Development continues to grow, the growth in ‘drop amount’ (the amount of cash exchanged for gaming chips) per visitor remains limited,” Choi said. “This is likely due to policy changes in China.”
However, the analyst said other factors – such as modest comparisons with Macau and rising visitor numbers – suggest growth potential remains.
“I believe there is still room for the number of visitors to Lotte Tour Development to increase further,” Choi said, noting that the number of club members reached 166,000 in Q3, up from 149,000 in the previous quarter.
“Currently, casino guests account for only about 50% of the hotel’s occupancy rate. With expectations for increased flight frequency on the Jeju-Macau route and the launch of new routes from China, the upward trend in visitor numbers is set to continue.”
On Jeju Dream Tower’s VIP rolling program, he added, “The average revenue per unit per day for gaming tables stands at approximately KRW13 million – still lower than the KRW 20 million average seen in Macau – which leaves significant room for growth.”
Jeju Dream Tower has set a series of all-time visitor and casino sales records over the past 18 months, including a new high for visitation in September, although as reported by IAG this wasn’t enough to prevent a sharp decline in casino revenue for the month, in part due to lower hold.
