Photo: Wikimedia Commons
Bank of America Merrill Lynch analyst Shaun C. Kelley spent 48 hours in Singapore and found that its market had larger crowds than the same time last year.The tourism board said it expects to meet its target of 17 million annual visitors by 2015, which will rely in large part on its casinos.
Kelley who also spent some time in Macau, reports on Singapore’s nascent market:
- The Singapore market seems healthy and crowds at Marina bay Sands (MBS) were bigger than May and June 2010. Resorts World Sentosa (RWS) has also seen strong traffic, both properties have between 20,000 – 25,000 visitors on their casino floors everyday.
- Singapore is likely to see infrastructure updates, a subway station is expected to open by MBS in 2012 which should bring more visitors to the property. The Garden’s by the Bay project is also well under way
- Marina Bay Sands, owned by Las Vegas Sands Corp., doesn’t have a huge mandate to cut costs other than its $11 million bad debt provision. The management is however focused on ramping up its midweek convention business. Its food and beverage, and retail business that launched in late Q4 are expected to boost revenue over time.
- MBS retailers have reported that they are disappointed with their performance so far and mall traffic was light during Kelley’s visit. The resort however expects its retail corridor to be open soon and one of its crystal pavilions will have a Louis Vuitton flagship store.
- Resorts World Sentosa, owned by the Genting Group, is looking to make maximum use of its property by looking at the profitability of its Malaysian busing program, revamping the electronic game tables for even better traffic and increasing the number of VIP tables.
- RWS plans to open its West Zone property in September or October with a planned theatre attraction. The projects is still aiming at a 200 – 250 room non-gaming hotel and 22 high-end villas.
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