Christmas Island Resort
Encyclopedia
The Christmas Island Resort, often called the Christmas Island Casino, is a holiday resort
on Christmas Island
, an Australia
n territory in the north-eastern Indian Ocean
lying about 300 km south of Java
and 1600 km north-west of the Australian mainland. It operated as a casino
for over four years during the 1990s.
property developer
Frank Woodmore as a business opportunity following the closure in 1981, for political reasons, of Indonesia
’s three licensed casinos, all of which were in Jakarta
. With Jakarta less than an hour’s flight from Christmas Island, the casino was intended to attract high roller
s from Indonesia and other Asian sources.
In 1985 a company, Christmas Island Resort Pty Ltd (CIR) was incorporated, with Woodmore, through Mercator Property Consultants Pty Ltd, initially holding 10% of the share capital, with other interests, principally controlled by Indonesian businessman Robby Sumampow, acquiring the remainder. Construction of the resort began late in the 1980s. On 5 November 1993 CIR was granted an Australian casino licence, with the building complex formally opened as the Christmas Island Casino and Resort on 18 December 1993.
As envisaged, the casino catered mainly to a wealthy Asian clientele, with most of its patrons flying in from Jakarta, often by private jet
. Business was facilitated by the Australian government, which issued special short-term visas for Christmas Island. Initially the resort ran at a profit, with most revenue coming from the casino. However, after 1994, CIR made losses. The resort was badly affected by the Asian Financial Crisis of 1997-98, and it suspended operations on 23 April 1998. On 28 July 1998 the Australian Minister for Regional Development, Territories and Local Government cancelled CIR’s casino licence and, the following day, the company went into receivership
. In 2000 the resort was purchased from the liquidators
by David Kwon, a Sydney
-based businessman.
In July 2004 a proposal by KFL Star Resort, a consortium of South Korean investors registered in Perth, to reopen the casino was rejected by the Australian Government, with the Minister for Local Government, Territories and Roads
Senator
Ian Campbell
quoted as saying that in the “interests of the Christmas Island community, the Australian Government has decided to make legislative changes to prohibit casino operations”. In July 2009 it was reported that the Australian Federal Government
was negotiating with Kwon about using the resort facilities to relieve overcrowding at the island’s Immigration Detention Centre
because of increases in boatloads of asylum seekers attempting to reach Australia. In response, the island’s Shire President, Gordon Thomson, said that the Australian government should take control of the then mothball
ed resort and hand it over to the Christmas Island community to operate as a tourist resort.
issued in 1989, at Waterfall Bay on the north-eastern coastal terraces
of the island, not far from the airport
. It contains 156 guest rooms and suites as well as other resort facilities such as restaurants, nightclubs and a swimming pool. When it operated as a casino the facilities included 43 slot machine
s and 23 gambling
tables. CIR also owned the Christmas Island Lodge, containing 80 motel-style rooms, in Poon Saan
as well as 144 apartment
s for staff accommodation.
Resort
A resort is a place used for relaxation or recreation, attracting visitors for holidays or vacations. Resorts are places, towns or sometimes commercial establishment operated by a single company....
on Christmas Island
Christmas Island
The Territory of Christmas Island is a territory of Australia in the Indian Ocean. It is located northwest of the Western Australian city of Perth, south of the Indonesian capital, Jakarta, and ENE of the Cocos Islands....
, an Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n territory in the north-eastern Indian Ocean
Indian Ocean
The Indian Ocean is the third largest of the world's oceanic divisions, covering approximately 20% of the water on the Earth's surface. It is bounded on the north by the Indian Subcontinent and Arabian Peninsula ; on the west by eastern Africa; on the east by Indochina, the Sunda Islands, and...
lying about 300 km south of Java
Java
Java is an island of Indonesia. With a population of 135 million , it is the world's most populous island, and one of the most densely populated regions in the world. It is home to 60% of Indonesia's population. The Indonesian capital city, Jakarta, is in west Java...
and 1600 km north-west of the Australian mainland. It operated as a casino
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
for over four years during the 1990s.
History
The casino/resort was conceived in the early 1980s by PerthPerth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
property developer
Real estate development
Real estate development, or Property Development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others...
Frank Woodmore as a business opportunity following the closure in 1981, for political reasons, of Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
’s three licensed casinos, all of which were in Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
. With Jakarta less than an hour’s flight from Christmas Island, the casino was intended to attract high roller
High roller
A high roller, also referred to as a whale in the casino industry, is a gambler who wagers large amounts of money. High rollers often receive lavish "perks" from casinos to lure them onto the gambling floors, such as free private jet transfers, limousine use and use of the casinos' best suites...
s from Indonesia and other Asian sources.
In 1985 a company, Christmas Island Resort Pty Ltd (CIR) was incorporated, with Woodmore, through Mercator Property Consultants Pty Ltd, initially holding 10% of the share capital, with other interests, principally controlled by Indonesian businessman Robby Sumampow, acquiring the remainder. Construction of the resort began late in the 1980s. On 5 November 1993 CIR was granted an Australian casino licence, with the building complex formally opened as the Christmas Island Casino and Resort on 18 December 1993.
As envisaged, the casino catered mainly to a wealthy Asian clientele, with most of its patrons flying in from Jakarta, often by private jet
Business jet
Business jet, private jet or, colloquially, bizjet is a term describing a jet aircraft, usually of smaller size, designed for transporting groups of up to 19 business people or wealthy individuals...
. Business was facilitated by the Australian government, which issued special short-term visas for Christmas Island. Initially the resort ran at a profit, with most revenue coming from the casino. However, after 1994, CIR made losses. The resort was badly affected by the Asian Financial Crisis of 1997-98, and it suspended operations on 23 April 1998. On 28 July 1998 the Australian Minister for Regional Development, Territories and Local Government cancelled CIR’s casino licence and, the following day, the company went into receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
. In 2000 the resort was purchased from the liquidators
Liquidator (law)
In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets of the company and settling all claims against the company before putting the company into dissolution....
by David Kwon, a Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
-based businessman.
In July 2004 a proposal by KFL Star Resort, a consortium of South Korean investors registered in Perth, to reopen the casino was rejected by the Australian Government, with the Minister for Local Government, Territories and Roads
Minister for Local Government, Territories and Roads (Australia)
Minister for Local Government, Territories and Roads was a position within the Australian federal government from 7 October 2003 until 3 December 2007....
Senator
Australian Senate
The Senate is the upper house of the bicameral Parliament of Australia, the lower house being the House of Representatives. Senators are popularly elected under a system of proportional representation. Senators are elected for a term that is usually six years; after a double dissolution, however,...
Ian Campbell
Ian Campbell (Australian politician)
Ian Gordon Campbell , Australian politician, was a Liberal member of the Australian Senate representing Western Australia between 1990 and 2007.-Early life:...
quoted as saying that in the “interests of the Christmas Island community, the Australian Government has decided to make legislative changes to prohibit casino operations”. In July 2009 it was reported that the Australian Federal Government
Government of Australia
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...
was negotiating with Kwon about using the resort facilities to relieve overcrowding at the island’s Immigration Detention Centre
Christmas Island Immigration Reception and Processing Centre
Christmas Island Immigration Reception and Processing Centre or commonly just Christmas Island Immigration Detention Centre, is an Australian immigration detention facility located on Christmas Island in the Indian Ocean.- History:...
because of increases in boatloads of asylum seekers attempting to reach Australia. In response, the island’s Shire President, Gordon Thomson, said that the Australian government should take control of the then mothball
Mothball
Mothballs are small balls of chemical pesticide and deodorant used when storing clothing and other articles susceptible to damage from mold or moth larvae ....
ed resort and hand it over to the Christmas Island community to operate as a tourist resort.
Description
The resort lies on a 47 ha block of land, a 99-year crown leaseLeasehold estate
A leasehold estate is an ownership of a temporary right to land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord....
issued in 1989, at Waterfall Bay on the north-eastern coastal terraces
Marine terrace
A marine terrace, coastal terrace, raised beach or perched coastline is a relatively flat, horizontal or gently inclined surface of marine origin, mostly an old abrasion platform which has been lifted out of the sphere of wave activity . Thus it lies above or under the current sea level, depending...
of the island, not far from the airport
Christmas Island Airport
Christmas Island Airport is an airport located on Christmas Island, a territory of Australia in the Indian Ocean. The island is located northwest of the Western Australian city of Perth, south of the Indonesian capital, Jakarta, and east-northeast of the Cocos Islands.Although located on...
. It contains 156 guest rooms and suites as well as other resort facilities such as restaurants, nightclubs and a swimming pool. When it operated as a casino the facilities included 43 slot machine
Slot machine
A slot machine , informally fruit machine , the slots , poker machine or "pokies" or simply slot is a casino gambling machine with three or more reels which spin when a button is pushed...
s and 23 gambling
Gambling
Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
tables. CIR also owned the Christmas Island Lodge, containing 80 motel-style rooms, in Poon Saan
Poon Saan
Poon Saan is a small settlement on Christmas Island, an external territory of Australia. Ethnic Chinese make up the majority of inhabitants. In Chinese, Poon Saan means "halfway up the hill"....
as well as 144 apartment
Apartment
An apartment or flat is a self-contained housing unit that occupies only part of a building...
s for staff accommodation.