Lotte Tour Development reports US$70m net loss

Analysts attribute the loss to the Covid-19 pandemic and costs associated with the opening of Jeju Dream Tower.

South Korea.- Lotte Tour Development, the operator of Jeju Dream Tower, has reported a net loss of KRW78.8bn (US$70.1m) for the 2020 financial year.

Lotte Tour’s sales reached KRW16.7bn, a decline of around 81 per cent year-on-year.

It attributed losses to the Covid-19 pandemic and the costs associated with the launch of operations at Jeju Dream Tower.

The tower opened late last year. Construction first began in the 1980s but was halted due to a lack of funding. In May 2016, construction resumed after changes to the design.

The tower contains 1,600 rooms, a shopping centre, and an observatory, among other facilities. Lotte hopes to gain permission to open the Dream Tower Casino next month.

Analysts expect the company’s financial position to improve once the casino is up and running.