keskiviikko 8. lokakuuta 2014

The Rise and the Fall of a Border Casino Project

Perhaps you have already heard the news: there will be no casino at the
Finnish-Russian border. The news spread out soon after the EASG
conference was held in Helsinki. What could be the reason to this change of plans?
RAY's managing director Velipekka Nummikoski refers to "delays and related
uncertainty". The second Finnish casino was to be located in a shopping centre
along with a five star hotel, a spa and a luxury outlet. The shopping centre
was a joint business project with Russians and Italians.

The biggest loser seems to be the municipality of Virolahti, which wanted
its share of the Russian tourism. Virolahti wanted to become a new business
centre and boost employment in the area. It was estimated that the Vaalimaa
casino would create about 100 new jobs and the whole shopping centre from
400 to 600 jobs. The municipality had many plans for the community:
the re-opening of the school, a new day care centre and new housing projects.
Virolahti was also happy to welcome new residents from Russia. What happened?

Taneli Dobrowolski writes about Russian tourism in Finland in his blog. Despite
the economic recession in Russia, tourism (and shopping tourism) increased in 2011.
Lately, Russian tourists have discovered new (more) attractive destinations such
as Estonia, Turkey, Egypt, Thailand, Greece and Spain. What is wrong with Finland?
The checkpoints are old-fashioned and the Finnish tourist industry hasn't been able
to keep up with Russians' changing expectations and high standards.

Many Finnish municipalities depend on Russian tourism. Many services (see
accomodation, leisure and shopping) have been developed to suit Russian
tastes and many people working in the tourist industry speak Russian. More
could be done and that is why Russian language is taught in some schools
(e.g. Lappeenranta) near the border. But tourism doesn't explain everything.

The Crimean crisis and the EU sanctions against Russia have put Finland
in a difficult position. As neighboring countries Finland and Russia are in
good terms, but Finland is also member of the EU. Russian sanctions
against Finnish products have already had economic repercussions, because
companies depend on the Russian market. The Finnish airline and other companies
need access to the Russian airspace in order to reach Asia and Oceania.

Will RAY find another location for the second casino? Time will tell. If RAY
decides to look for a new location, it must be in the Eastern Finland. Hopefully
the next casino project will be planned more carefully: chasing a dream is good
for individuals, but not for a business. Perhaps it is time to look for other potential
markets and create innovative and responsible forms of gambling. Finland
is a small country (population 5.5 million) and there are only a few cities that
can be defined as tourist destinations. In addition, PAF operates on the
cruise ships travelling to Tallinn, St Petersburg, Stockholm and Mariehamn
(Åland Islands)...


RAY withdraws from the Vaalimaa casino project:
http://www2.ray.fi/en/taxonomy/term/1/ajankohtaista/ray-withdraws-from-the-vaalimaa-casino-project

Valimaa Luxury Outlet and Casino:
http://vaalimaaoutlet.com/brochure_vaalimaa_lr.pdf

EU sanctions against Russia:
http://europa.eu/newsroom/highlights/special-coverage/eu_sanctions/index_en.htm

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