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Wish List and Incentives to Build New
Hotels in NSW
April 2007
Now that the Labor Government has been returned to office
in New South Wales, there are a number of ‘wish lists’ floating around including
the possible trading of AAD’s for poker machine entitlements (1 for 1).
Importantly however there should be some incentive provided by the Government to
stimulate the construction of new hotels. There has been a limited number of new
hotels constructed since the introduction of the poker machine entitlement due
to the additional cost of providing gaming facilities in these venues, with now
the basic cost of a simple freehold Hotel with fifteen poker machine
entitlements being in excess of $7 million.
If the government provided a number of complementary entitlements for new venues
such as 5 PME’s simply by re-issuing forfeited gaming entitlements this would
create a carrot to construct a new Hotel particularly in growing and gentrified
suburbs .
Bligh Williams
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