Spain’s Most Indebted Region Gambles On Casino Complex To Reinvigorate Economy

The Spanish region of Catalonia, with an estimated debt of around 42 billion euros ($53 billion), has announced plans to build a 4.8 billion euro ($6 billion) casino and entertainment complex in its capital of Barcelona, which the local government hopes will generate over 20,000 jobs for the region.

The Spanish region of Catalonia, with an estimated debt of around 42 billion euros ($53 billion), has announced plans to build a 4.8 billion euro ($6 billion) casino and entertainment complex in its capital of Barcelona, which the local government hopes will generate over 20,000 jobs for the region.

According to Reuters, “Barcelona World” will be run in conjunction with La Caixa bank; and will be completed by 2016, creating six large tourist complexes with 20,000 hotel rooms, shopping centres, a theatre, convention centre, casinos, services and offices.

Each complex, according to the report, will represent a country or region: Europe, the United States, China, Brazil, Russia and India, and project promoters say they hope to lure at least 10 million visitors a year.

“Nothing has been signed, (but) we just have an agreement between the parties to go ahead with the project,” said a finance official at the Catalan regional government to AFP.

[quote]”We are looking for self-financing on an equity basis, which means attracting investors to each of the six complexes who will also take charge of construction in that sector,” the official added.[/quote]

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Catalonia is the most visited region in Spain, with close to 14 million people tourists last year. Official data suggest that visitor numbers actually increased in July this year by 2 percent compared to the same period a year ago.

According to AFP however, the decision by Catalonia’s local government to go public with its casino complex had only come after Las Vegas Sands, the world’s largest casino company by market value, had snubbed plans to build a mega casino project in Barcelona in favour of one in Spain’s capital of Madrid.

Las Vegas Sands Chairman and CEO Sheldon Adelson announced the decision to choose Madrid over Barcelona last Friday night, prompting Catalonia to unveil its own plans for a resort.

Catalonia’s regional and sustainability minister, Lluis Recoder, even went to say that “Barcelona World” was in some ways better than Madrid’s casino, to be named “Eurovegas”, as it was to be located in a developed area with no planning modifications required.

[quote]”The speed of execution of this project is greater than any other that could be on the table, not only in Catalonia but in the whole of Spain,” Recoder claimed.[/quote]

Up to 20 percent of the funding for “Barcelona World” has already been agreed to by real estate company Veremonte, with the rest coming from unnamed investors such as hotel and construction groups.

Recoder further assured the public that the project would be largely funded with private, rather than public, funds; though they could still tap into central government funds after borrowing over 5 billion euros in state funding just last week.

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