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15.09.2023 - 17:43 / forbes.com
The Cyprus property market has been booming for a while, but the focus has been on the residential sector, rather than retail. However, the first casino in Europe from Hong Kong-based Melco Resorts potentially opens the door wider to luxury shopping.
City of Dreams Mediterranean was built at a cost of around $650 million and joins Melco’s other resort venues in Macau, Greater China, and Manila in the Philippines. They helped generate revenue of $949 million in the three months ended June 2023 (up 220%) for the Nasdaq-listed company whose chairman and CEO is Hong Kong billionaire Lawrence Ho.
The latest casino officially opened in the Zakaki district of Cyprus’s second-biggest city, Limassol, on July 10, claiming to be Europe’s first integrated resort with a sizable 18,300 square feet of luxury shopping thrown in. In addition to the retail space, core features are a 14-floor luxury hotel with 500 guest rooms and suites, a family adventure park, an outdoor amphitheater, and over 740,000 square feet of meetings and exhibition space.
The July opening provided a brief boost to Melco’s stock sending it up to $13.77, the highest it has been since May 1, but since then it has fallen to a new low this year, and it was just above $10, today (Friday).
According to the marketing patter, the retail offer is where “Avenue Montagne meets Via Monte Napoleone meets Ginza”; the streets in Paris, Milan, and Tokyo famous for their branded boutiques. Melco did not respond to emails about whether the Cyprus market is ready for such a high-end presence. The resort website says: “Our experts have curated a selection of the best fashion pieces the world has to offer.”
Will shoppers agree? Brands include some well-known international names as well as local players. They includeVassos Eliades (home to luxury watch and jewelry brands); Cartier; Zenith and Hublot Swiss luxury watches; Italy’s Damiani, Michalis Diamonds; Costas Theodorou (travel and leather goods including Tumi); and Kult Boutiques which occupy 10800 square feet dedicated to men’s and women’sfashion, and beach and resort wear.
There are mixed views on what City of Dreams will do for the island. One luxury retailer with long experience in Cyprus is First Boutique.Ilya Loshak, the CEO of Millya Group which owns the chain, told me: “While the opening of City of Dreams may attract more tourists, it is uncertain whether these will be affluent travelers. The location of the new casino is not in the premium market and I believe a high-profile client will be looking for a better-located place to stay when visiting the casino.”
Loshak also questioned City of Dream’s impact on current retailers. “Existing luxury retailers will not face increased competition. By offering the
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