Category: IR

Mar 06 2010

Universal Studios opening on March 18

Visitors get $15 voucher during early phase to offset any inconveniences

DINOSAURS, green ogres and a talking donkey are getting set for March 18, when Singapore’s Universal Studios theme park throws open its doors to the public at 8.28am.

Tickets for the park’s debut will go on sale from next Wednesday, starting at 9am.

Although all 19 attractions and shows – including the world’s tallest duelling roller coaster and rides inspired by the Jurassic Park and Shrek movies – will be up and running, Resorts World Sentosa (RWS) said it may stop and close certain attractions at any time to make adjustments during the initial opening phase.

To make up for such inconveniences, RWS will give visitors $15 in retail and food and beverage vouchers.

It is unclear how long this preview phase will last, but resort spokesman Robin Goh said the park will take as long as required to fine-tune the attractions to its satisfaction.

Such previews are not uncommon. In 1999, Universal Studios Florida held a two-month soft opening to give management time to work out teething problems as park-goers tried out the rides.

The Singapore park, the second Universal Studios in Asia after Japan, is prepared to handle the crowds.

RWS is limiting the number of tickets on sale for this period to prevent a repeat of the problems that ensued when the casino opened during Chinese New Year.

At the time, visitors complained about such things as the limited number of toilets, lack of 24-hour dining facilities and confusion over suitable attire for the gaming floor.

Mr Goh said: ‘Unlike the casino opening where there was no way of pre-empting the number of visitors, for Universal Studios Singapore, we will know exactly how many visitors to expect for the day from our ticket sales.’

RWS would not say exactly how many tickets will be on sale.

The long-awaited announcement made yesterday concluded RWS’ Phase One launch, which kicked off with four hotels opening on Jan 20, the retail strip on Jan 31 and casino on Feb 14.

Another two hotels with 500 rooms, an oceanarium, a maritime experiential museum, and a water theme park and spa will open in Phase Two.

Mr Goh said work has commenced but there is no date yet for this opening.

RWS is one of two casino-resorts awarded in 2006.

Its competitor, Marina Bay Sands, announced last week that it will open its first phase on April 27, followed by a grand opening on June 23.

With the theme park’s opening given the green light, travel agents can now begin selling travel packages.

CTC Holidays spokesman Alicia Seah said: ‘This is the date we have all been waiting for.’

Now that the date is out, all travel agents need to do is to follow up on the hundreds of enquiries made and confirm bookings.

City DMC general manager Wendy Leong said she has many customers who are putting off their visit to Singapore until they know the theme park’s opening date.

Tickets for the theme park have to be purchased in advance – either online, through phone bookings or from the Universal Studios box office on Sentosa.

Prices start from $66 for a one-day weekday pass for an adult. The same pass for a child aged 12 and below will cost $48.

Source: Straits Times, 6 Mar 2010

Mar 05 2010

Universal Studios Singapore opens to public from Mar 18

Universal Studios Singapore in Resorts World Sentosa (RWS) will be open to the public from March 18 at 8.28am.

But the park’s first guests will be staff of RWS, who will be able to enjoy the rides from March 13 with their families.

Universal Studios Singapore will bring to life the best movie-themed attractions packed within seven zones.

RWS said it is possible that certain attractions may become temporarily unavailable during the preview phase, as Universal Studios Singapore continues its technical and creative adjustments.

Ticket prices will then be partially rebated with S$15 worth of shopping and dining vouchers valid for use at the theme park.

Robin Goh, assistant director for Communication at RWS, said that during the soft opening period, there will be limits on the number of guests.

“This is to ensure there will be a phased run in of the operations within the opening of the park gradually, and this number will be increased in time. When we are fully operational, we are expecting 4.5 million visitors to Universal Studios alone a year,” Mr Goh said.

Ticket sales will begin at 9am on March 10. They can be made online, via phone bookings and at the ticket booths at the theme park.

Singaporeans and Permanent Residents holding onto DBS credit cards can expect S$6 off regular ticket prices.

Source: Channel News Asia, 5 Mar 2010

Feb 25 2010

Marina IR opens April 27

SINGAPORE’S second integrated resort, the Marina Bay Sands (MBS), will open on April 27.

Like its counterpart on Sentosa, MBS will open in phases, with the casino, some hotel rooms, restaurants, part of the shopping mall and convention centre opening first.

Unlike Resorts World Sentosa (RWS), however, MBS has detailed when its various attractions will open.

In a statement yesterday, the resort said its first major event, a meeting of lawyers worldwide for the Inter-Pacific Bar Association’s 20th annual conference, will be held on May 2 to 5, just days after it opens.

It added that a grand opening ceremony has been planned for June 23, when the Skypark and several other attractions will begin to accept visitors.

Other areas of the resort, such as its theatres and museums, will throw open their doors progressively till the end of the year.

However, MBS added a caveat to its statement: The timeline could change if there are construction delays, for example. Getting regulatory approval is another factor, it added.

Casino Regulatory Authority spokesman Vivian Heng said it received MBS’ casino licence application in November last year, and the clearing process is under way.

Yesterday’s announcement comes after three years of work, including several delays. MBS was originally slated to open last December, but construction woes – the resort said it suffered a shortage of sand and other materials – led to the opening date being pushed back twice.

At one stage, there were even questions about whether MBS’ parent company, Las Vegas Sands (LVS), could complete the US$5.5 billion (S$7.7 billion) project, given the battering it took during the global financial crisis.

At its low point, there were fears that the company could go belly-up because of its debts. Several analysts questioned then whether LVS was using the delays to paper over its financial woes.

But Mr Sheldon Adelson, chairman and chief executive officer of LVS, stressed several times that MBS was ‘probably the company’s most important project’.

Yesterday, Mr Adelson said: ‘Despite the challenging, and at times unprecedented economic conditions companies like ours recently faced, our dedication to completing this development never wavered, not even for a second.’

Analysts and industry experts contacted yesterday welcomed the announcement of an opening date, saying MBS would add a different dimension to Singapore.

They agreed that while the two integrated resorts (IRs) will help Singapore become more attractive to tourists, give a boost to the economy and create a wealth of jobs, MBS will add extra wattage to the cityscape by injecting a dose of glitz, glamour and culture.

Singapore hopes to attract 17 million visitors, who will spend $30 billion, to the country by 2015. The two IRs are also expected to add some $5.4 billion to the economy yearly, and create at least 20,000 jobs.

CIMB-GK regional economist Song Seng Wun said that while RWS will draw leisure travellers and families – an important segment of the tourism market, no doubt – the Marina Bay IR will pull in movers and shakers with fatter wallets and influence worldwide.

MBS will also add to Singapore’s nightlife and cultural scene too, with such world-class shows as The Lion King, said National Association of Travel Agents Singapore chief executive Robert Khoo.

But analysts were quick to point out that both sides have their own strengths, and will do a good job of appealing to their own market segments.

One group that had an opposite reaction was travel agents, who feel RWS, not Marina Bay, will be the game-changer for them, since their business covers mainly leisure travellers.

But convention organisers were rubbing their hands with glee.

Mr Edward Liu, president of the Singapore Association of Convention and Exhibition Organisers and Suppliers, said MBS’ opening is something that the local meetings, incentives, conventions and exhibitions (Mice) industry has been looking forward to with great anticipation.

Its location and the number of attractions under one roof mimic the Las Vegas business model, a proven winner, he said.

He has already booked two mega- events at the IR.

Shares of Genting Singapore, which owns RWS, ended 1.5 cents lower at 94 cents yesterday after the announcement.

LVS shares opened slightly higher in early trading on the New York Stock Exchange, despite a recent trend of pressure on Las Vegas casino operators due to fears of falling room rates and worries over MGM Mirage’s newly opened US$8.5 billion, 6,000-room CityCenter project.

What’s coming up this year
April 27: Phase One opening with 963 hotel rooms, part of shopping mall and convention centre, three of six celebrity-chef restaurants and other dining outlets and the casino
May 2 to 5: Hosting of its first event, the Inter-Pacific Bar Association 20th Annual Conference
June 23: Phase Two opening with the sky garden – Sands SkyPark – its event plaza in front of Marina Bay, the rest of the retail mall, more dining outlets and nightlife offerings. Grand opening celebration is also scheduled.
October: Disney’s The Lion King to open at one of its two theatres
Later in the year: Second theatre to host a variety of special events; headline acts to open
December: Marina Bay Sands museum to open

Source: Straits Times, 25 Feb 2010

Feb 17 2010

Orchard Road hotels and retailers say IR will bring in more business for them

Over the Lunar New Year holidays, Singapore’s first casino and Universal Studios theme park at Resorts World Sentosa garnered all the attention.

But some are wondering if the focus on roulette tables and roller coaster rides will cause the mainland’s central shopping belt along Orchard Road to lose its glitter.

Singapore’s first casino and Universal Studios theme park opened over the weekend creating a buzz, not just here, but in the region as well.

With Singaporeans and tourists expected to throng the attractions – the question is – what will happen to the country’s premier shopping belt, Orchard Road?

For one, hotels there said they are not perturbed by the competition.

Katherine Wong, GM, Mandarin Orchard Singapore, said: “It is an anticipated competition where it’s the IR or new hotels coming into the market. We monitored our occupancy very closely. It could be a friendly threat for all, but I do not see any significant ups and downs.”

Hotels said it’s unlikely Orchard Road will be overshadowed by developments in Sentosa, a point echoed by retailers.

Jimmy Fong, CEO, AFOR – EpiCentre, said: “Resorts World Sentosa will bring in more crowds because more tourists will be in Singapore. Not everyone will head to the casino, where it’s more entertainment. Our place here is more for shopping.”

And Orchard Road, after the recent revamp at its many shopping malls, is still pulling in the crowds.

In fact, 313@Somerset saw some 80,000 shoppers during the Lunar New Year holidays with retailers saying business doubled.

The mall is also linking up with Orchard Central in two to three years’ time, all part of plans to enhance the shopping experience.

While the situation for now seems okay for Orchard Road hotels and businesses, it remains to be seen how it’ll be like when the second integrated resort opens in Singapore.

Ruprecht Schmitz, general manager, Orchard Hotel Singapore, said: “If you go to the resort in Sentosa, you may not want to stay only in Sentosa and if you go to Marina Bay, may not only want to stay in Marina Bay. There are many other things to do in Singapore and you may also have clients who want to go to these resorts but don’t want to stay there.”

Orchard Hotel said the influx of tourists to Singapore as a result of the integrated resorts should boost their weekend occupancy as well.

Source: Channel News Asia, 17 Feb 2010

Feb 11 2010

Universal Studios opens Sun

SINGAPORE’s first casino will open on Sunday at 12.18pm, together with a partial opening of Universal Studios.

A day of festivities at the Integrated Resort has been planned to mark the red-letter day, including the debut of its public attraction, Lake of Dreams, and evening previews at its Universal Studios theme park.

The casino opening is part of the initial phased opening of Singapore’s first IR that began on 20 Jan 2010 with the opening of its four hotels: Crockfords Tower; Hotel Michael; Festive Hotel; and Hard Rock Hotel Singapore. Its shopping and dining promenade, FestiveWalk, soft-opened on 30 Jan.

Resorts World Sentosa chairman, Tan Sri Lim Kok Thay said: ‘In less than three years since the time we broke ground and commenced construction for Resorts World Sentosa, we have taken our vision from drawing board to reality. This is a significant milestone in Singapore’s business history. We promised to deliver a true Integrated Resort, and we have not deviated from that.’

For sneak peek week, Universal Studios Singapore will open from 5pm to 9pm every night from 14 Feb to 21 Feb.

Admission will be by $10 tickets, rebated by a same-value dining voucher. Sale of the tickets starts from 11.18am on Friday, 12 Feb 2010. Guests can visit the box office at the Universal Studios Singapore front gate to purchase tickets for another day (there will be no same day ticket sales available).

Source: Straits Times, 11 Feb 2010

Feb 06 2010

Resorts World at Sentosa awarded casino licence

Resorts World at Sentosa has been awarded its casino licence. It is the first of Singapore’s two integrated resorts to get the go ahead for its casino operations.

Although the opening date of the casino at Resort World has not been announced, preparations are in full swing.

Resorts World Sentosa chairman Lim Kok Thay said: “We are very happy to have received the casino licence. This was made possible by the dedicated team, consultants, contractors and government officials, especially the Casino Regulatory Authority, which worked tirelessly to set up the regulatory framework within a very agressive timeline.”

Lunar New Year decorations have already been put up at the lobby of the casino.

Resorts World staff were in the midst of an orientation when the MediaCorp news team visited.

Although the doors remain shut, visitors are excited about the prospect the casino may be opening soon.

Some are hoping the casino will be open in time for the Lunar New Year which begins on February 14.

While foreigners do not have to pay the US$100 levy before entering the casino, locals will have to do so at this booth.

Before arriving at the booth, visitors to the casino will be segregated according to whether they are Singaporeans or overseas guests.

The S$6.6 billion integrated resort at Sentosa is opening in phases, starting with its hotels last month.

Many are also waiting for the theme park, Universal Studios Singapore to open.

Some of the staff at the resort have been busy testing out the amusement rides and more.

Andrea Teo, vice president, Entertainment, Resorts World Sentosa, said: “We are in full swing, getting ready for the theme park. We have been testing and commissioning the rides. Some of our people have been experiencing this – going from ride to ride to ride and having a very good time. And we have all been eating at restaurants, trying out the food at very good prices.

“We are at various percentages of finishing the different rides and resorts. But I would say that we are on an actually pretty fast track to completely everything. Our hotel opened on the January 20 and since then, we’ve had 90 per cent occupancy. Festive Hotel and Hard Rock have been fully booked. And for Chinese New Year, we are fully booked.”

And while casino staff are busy gearing up for the opening day, Singapore’s Police have also been started serving the Exclusion Orders to those with a history of crimes such as those related to drugs and illegal moneylending.

So far, about 3,500 people with serious criminal records have been barred from the two casinos when they open.

The latest exclusion orders are on top of what the National Council on Problem Gambling has issued.

Some 28,000 undischarged bankrupts and those on public assistance have also been banned from entering casinos.

Source: Channel News Asia, 6 Feb 2010

Jan 30 2010

Marina Bay IR sued by would-be tenant

EVEN before it opens for business, the Marina Bay Sands (MBS) integrated resort is facing a High Court lawsuit.

A spa firm which had its tenancy rejected after a change of management in the IR has sued it for at least $250,000 – the minimum amount for High Court suits to start. Lawyers for both parties appeared in a closed-door court on Wednesday to discuss the exchange of documents in the run-up to the case.

Spa@Sands claims it was offered two units at the resort’s shopping complex, after which it paid close to $280,000 in upfront rent and stamp fees. It claims that it paid $233,660 for a month’s rent, along with about $45,000 in stamp fees.

According to court documents, its director, Mr Phang Song Hua, 43, was invited to make an offer to lease the premises in July last year. He is the founder of a geomancy and health lifestyle firm, New Trend Lifestyle. He registered Spa@Sands last July.

The rent offered by Mr Phang was priced at $10 per sq ft for the 23,366 sq ft area – about the size of 20 HDB five-room flats. In contrast, the rental at Ion Orchard is at least $30 psf.

Mr Phang claims that when MBS banked in the cheques for these sums, it showed that the IR had accepted the offer. Mr Phang had also signed and returned the lease that was attached to the letter of offer by the July 13 deadline.

Spa@Sands made a presentation to MBS senior management at their request and was told on Aug 12 that its offer had been accepted. At the same time, the two cheques were also cleared.

But a few days later, there was a change in the senior management at the IR. The following month, the spa was told that its offer had been rejected.

It is understood Spa@Sands is seeking damages to recover the manpower and other costs incurred in the preparations to start the spa. It is alternatively asking the court to declare there was a valid agreement between the parties.

MBS argued through lawyer Eugene Thuraisingam from Stamford Law that it had not accepted the offer, or it would have signed its acceptance in the letter of offer and returned it to Spa@Sands.

It pointed to a condition in the offer letter issued that states that unless the tenant’s offer is accepted by the landlord, the landlord had the right to deal with other parties. The sum paid by the spa was also refunded.

But the spa, through Unilegal’s Chan Fook Meng, took issue with the claim, pointing out that while MBS could have shown its acceptance by signing the offer letter after it was signed by the spa, that was not the only way which acceptance could be signified.

It said MBS showed acceptance by banking the cheques, and that there was verbal agreement by its staff. MBS was not limited to signing the offer letter but could vary its mode of acceptance.

Source: Straits Times, 30 Jan 2010

Jan 20 2010

S’pore park slated to open next week

SOUTH-EAST Asia’s first big-name theme park – Universal Studios Singapore – at Resorts World Sentosa (RWS) looks set to open its doors next week, just a week after the resort welcomes visitors to its hotels and shops today.

Tan Sri Lim Kok Thay, chairman of Genting Group, which owns the $6.59 billion resort, said yesterday: ‘By the end of next week, Universal Studios Singapore will open, and when we officially launch Resorts World Sentosa later this year, it will be another significant and historical milestone achievement for the group.’

He was speaking at the Kuala Lumpur launch of the group’s logo to mark its 45th anniversary.

RWS had previously not been able to confirm the opening date of the theme park, saying only that it would be open by the first quarter. But sources pointed to an opening date of Jan 28 or 29.

When asked about its main attraction yesterday, a RWS spokesman would only say that it was working closely with the Ministry of Home Affairs to get the relevant permits.

The theme park boasts 24 rides and attractions, 20 of which are expected to be ready when it opens, according to a prior announcement. Each ride requires a permit to operate, and a RWS spokesman said they will not be opened to the public until proven to be safe.

The resort is also awaiting a licence to operate its casino.

The casino and theme park are expected to be the sprawling 49ha complex’s main money-spinners, but it boasts other attractions too, including the world’s largest oceanarium, plus dozens of shops and restaurants.

As part of its concept plan, a significant portion of the resort has to also cater to non-gaming areas, with the government setting a maximum approved gaming area of no more than 5 per cent of the resort’s total development area.

The theme park is expected to attract up to 30,000 visitors daily.

A one-day weekday pass will cost $66 for adults, $48 for children and $32 for senior citizens. Weekend, public holiday and eve of public holiday one-day passes will cost $72, $52 and $36 respectively.

But the passes are still cheaper than those of Universal’s other attractions in Orlando and Osaka, which go for US$79 (S$109) and 5,800 yen (S$90) respectively.

Source: Straits Times, 20 Jan 2010

Jan 18 2010

First retail space at Resorts World Sentosa to open on Jan 20

Visitors to Resorts World Sentosa will be able to shop there when the first of its retail belt opens in time, for its soft launch on Wednesday.

The shopping strip makes up about 20 per cent of the entire retail space at the integrated resort.

As for its casino and the Universal Studio theme park, the company is hoping to open both in time for the Lunar New Year.

Last minute touches are being made to greet guests when Singapore’s first integrated resort opens. With just four of its six hotels and 10 restaurants opened, there is already strong interest from both locals and tourists.

Andrew Hickey, vice president (Rooms), Resorts World Sentosa said: “We had over 5,000 room nights booked in the first days of our reservations centre opening. (There is a) strong local demand from the overseas travel trade.

“Chinese New Year is already booked out. Indicators are very very strong. Weekends are filling up obviously”.

Resorts World has said it is targeting 12 to 13 million visitors each year, boosting Singapore’s visitor arrival numbers.

The Singapore Tourism Board has said that it hopes the two Integrated Resorts, including the one at Marina Bay Sands, will help double visitorship figures to 17 million by 2015.

Also making its grand opening on Wednesday is the Galleria – where retail staff have been put through the paces. This retail belt links the Festive Hotel, the casino entrance and Hotel Michael.

Noel Hawkes, vice president, Resort Operations, Resorts World Sentosa said: “We also have a Swarovski, we have a beauty hall and we have a Swiss shop gallery. We have some very nice new to market brands like Canali, which will open its first retail shop in Singapore as well as a very famous brand from Canada called Damiani, which is a very high-end jewellery shop.”

“Apart from these high-end jewellery (shops), we also have our very famous Chihuly gallery. This is going to be very exciting. We have about S$6 million worth of his very beautiful art works and his chandeliers in the casino as well as the Crockfords Tower, and now guests will be able to go and buy smaller pieces which are absolutely fabulous or some of his wonderful paintings.

“We have also got a Michael Graves gallery – first in the world in fact – and Michael Graves is the one who designed this entire project. He will have his own gallery selling stuff that he designed himself like the whistling teapot.”

The completed retail stretch at Resorts World Sentosa is about 300 metres long, with over 20 high-end brands including the highly anticipated Victoria’s Secret boutique.

Mr Hawkes said: “A lot of the retail here is geared towards our casino customers, (and) impulse buying.

“So that is why we have targeted some of the products. There are very high-end retail, expensive watches, diamonds, jewellery.”

About 70 per cent of the resort’s entire retail space is expected to be ready by next month.

“Especially if you take into consideration our Universal Studios, which is huge. We have got about 16 shops over there and we have something for absolutely everybody within our retail offerings in Universal Studios,” added Mr Hawkes.

But the clincher for most people would be the opening of the theme park and casino.

Ron Lim, general manager, Crossroad Tours & Travel said: “I already got a group of 12 persons coming from Taiwan into Resorts World. From what we see, it is supposed to be good.

“Furthermore, Casino is tied up with a theme park so when the adults play at the casino they will still go to the theme park”.

Wendy Leong, general manager, City Tours said: “The main concern right now is when Universal Studio is going to be opened, so that we will be able to package it together including all the hotel stay as well.”

Resorts World is currently awaiting licensing approvals from authorities for both the casino and theme park. And when Universal Studios opens, 20 out of its 24 rides will be fully operational.

Over the next two years, visitors can expect phase two of Resorts World Sentosa to be completed. These include two more hotels and the marine life park, the world’s largest oceanarium.

Source: Channel News Asia, 18 Jan 2010

Jan 16 2010

IR gamble looking like a sure-win

FIVE years in the making and now, the first integrated resort (IR), Resorts World Sentosa (RWS), will begin to open next week.

And to say that Singapore has a lot riding on this would be an understatement.

When the IRs were first given the green light back in 2005, job creation and a boost to the economy had been emphasised as key reasons to accord prominent and valuable development sites to what would essentially be a theme park and an exhibition hall with casinos. About 40,000 jobs were expected to be created indirectly by 2015, on top of the 10,000 jobs created at each IR. Within this period, Singapore’s gross domestic product (GDP) was also projected to grow on the back of about $2.7 billion of value-add generated by the IR effect.

Today, apart from a few detractors, all signs seem to point towards the IR effect really working. Already, the construction and real estate sectors have benefited. Leong Wai Ho, an economist at Barclays Capital Research estimated that both IRs at maximum capacity could potentially add up to 1.7 percentage points to GDP in a given year, higher than the government’s most recent estimate of 0.5 to one per cent.

One reason for Mr Leong’s bullishness is that Singapore, which has historically never been a single-stop destination for tourists, could now change its profile. ‘The broader mix of activities could also induce each visitor to stay longer and spend more,’ he added. ‘Outside of construction, there is a wide range of beneficiaries – from food manufacturers, general suppliers, wholesalers, retailers, Mice (meetings, incentives, conventions and exhibitions), entertainment venues, even banks and our capital markets,’ added Mr Leong.

There are challenges ahead though, and for Resorts World, this may come in the form of the neighbouring competition.

Jonathan Galaviz, an independent travel and leisure sector strategist, believed that it is reasonable to expect that by 2020, there will be several more cities in Asia that will offer integrated casino entertainment. ‘I think most cities in Asia would see a theme park being strategically beneficial to their tourism mix, but stand-alone theme parks generally have very low returns on capital, so investors are usually wary. It’s important for Singapore to begin looking at the next ‘wow factor’ that it must develop to be competitive in 2015 and beyond in Asia’s tourism sector,’ he said.

RWS is expected to roll out new attractions at Universal Studios Singapore (USS) regularly. Phase Two, which includes the world’s largest aquarium, will open next year.

But will it be enough to generate buzz?

‘Theme parks are successes or failures based upon the ability to get repeat visitation over a long multi-year period. There will be a lot of first time visitation in the first year of operation, but keeping the theme park exciting after five years of operation to attract repeat visitors is the key to financial success,’ added Mr Galaviz.

In terms of business viability, much will depend on the revenues generated by the casino. In this respect, Genting Singapore – RWS’s owner – may be in a relatively good position to weather a longer ramping-up period as parent Genting Berhad is flushed with cash.

Melvyn Boey, economist at Bank of America Merrill Lynch, added: ‘Debt covenants won’t be a major issue.’

Still, there are three gaming destinations nearby – Macau, Malaysia and Australia – and all would be loath to give up any share in the gaming pie, including Genting, which also owns the casinos in Malaysia.

Dean Macomber, a gaming consultant and president of Macomber International reckoned that the casinos ‘will do phenomenally well’. But with investment capital being so high – US$4.4 billion for RWS – Mr Macomber said: ‘This makes any source of revenue more critical but particularly so if a large category of revenue is placed in jeopardy of being lost, such as junket players and/or Singapore residents.’

Already, the current financial crisis is expected to have impacted bullish financial projections made earlier when the IR bids were first awarded in 2006.

Can the casinos survive without junkets? ‘What we do know is that Asian junket-driven demand is real and is large. All the metrics would indicate that the resident market is real and large,’ said Mr Macomber.

As the junket regulations were only released recently, it is likely that the IR operators would not have factored in the possibility of low junket support. ‘This means they must do the best they can with what they have, while, if necessary, find alternative sources of revenue/profit,’ added Mr Macomber.

RWS already seems to be on it.

All resorts have Mice facilities but those at RWS are proving to be quite substantial, boasting one of South-east Asia’s largest, column-free ballrooms, 26 function rooms and over 20 indoor and outdoor events venues for more than 35,000 delegates at any one time.

Marina Bay Sands (MBS) has said that it can host 45,000 delegates.

Trevor Soh, director of events organiser Pico Art, said that it is looking to stage events at both IRs. ‘Both MBS and RWS have different exciting offerings and attractions serving the needs and requirements of different events, organisers and participants. To event organisers, flexibility and service levels are very important selection criteria besides price, location and facilities,’ said Mr Soh.

Genting is not so well known as a Mice player but it apparently has a finger in this pie too. ‘Genting has a successful track record in operating leisure resorts with Mice facilities in the region. RWS will be able to leverage on the group’s experience and business network in the region,’ said Mr Soh.

Source: Business Times, 16 Jan 2010

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