Gaming doing well, but IRs coming into their own as truly integrated resorts
Singapore
THE recent commitment by Singapore's two integrated resorts (IRs) - Marina Bay Sands (MBS) and Resorts World Sentosa (RWS) - to expand their footprint is a big plus for the country's efforts to bring in quality tourism.
"I welcome the new investments, they are much needed," said Singapore Tourism Board (STB) chief executive Keith Tan. "The fact that not a single government dollar is being put in, it means that (parent companies) Las Vegas Sands and Genting have done their sums and believe it is financially viable to do this."
In April this year, the two IRs announced a slew of expansion plans worth a combined S$9 billion.
Among other things, MBS will add a new 15,000-seat indoor arena and a fourth hotel tower, while RWS will extend its Universal Studios theme park to include two new attractions - Minion Park and Super Nintendo World.
This latest investment is almost two-thirds their initial investment back in 2006, which was about S$15 billion at the time.
Mr Tan noted that both IRs are eager to bring in greater numbers of quality tourists to Singapore. Universal Studios at RWS, for instance, remains a big draw for both tourists and Singaporeans alike.
"(Universal Studios) has done well, it has drawn in the family groups, and it is popular among visitors from countries like India, the Philippines and Indonesia," said Mr Tan.
Over at MBS, the new hotel tower will feature only luxury suites, which means they will be sold at a certain price point that will appeal to the more affluent traveller.
He shared that STB and the other government agencies were initially not convinced that MBS' proposal to construct a new mega-arena was the best idea, given that Singapore already has other performance spaces.
But after engaging the entertainment organisers and promoters, they revealed that many global acts were giving Singapore a miss because these existing venues were not large enough to make the shows financially viable.
Apart from the 55,000-seater National Stadium which can stage concerts too, the only other sizeable arena is the 30-year-old Indoor Stadium, which can accommodate up to 12,000 people.
"For someone like Celine Dion, she needs to fill at least 15,000 seats in order for ticket prices to be in an acceptable range," said Mr Tan.
"(These shows) can bring in people from Vietnam, Thailand, Indonesia and elsewhere. This helps with our quality tourism, as they will fly here, pay big bucks for a concert ticket, and hopefully spend a night or two partying."
As part of the new deal, the two IRs are allowed to expand their casino space, although neither has exercised that option yet.
Mr Tan noted how, as the IRs approach their 10th birthday in 2020, neither of them made gaming a major priority as they mapped out the next stage of their expansion in Singapore.
"We can see it as a strong indicator that while the operators themselves recognise that gaming is doing well, they don't need a huge expansion (of the casinos) in order to continue growing," said Mr Tan. "How I see it is that the IRs are now maturing into truly integrated resorts."
