Yesterday Singapore’s second integrated casino resort had a soft opening. The US$5.7 billion Marina Bay Sands has started operations with around one-third of its hotel rooms, some of its shopping mall, a convention centre and, of course, its casino. The huge project is in Downtown Singapore, the central business district, and is part of the government’s planned boost to visitor numbers and the economy of the city-state.

In February the first integrated resort (IR), Resorts World Sentosa, was opened and appears to have already contributed to Singapore’s attraction for tourists. Visitor numbers rose 17.3% in March from the same month last year and at 928,000 were the best ever recorded for the month. In February the figures rose by 24%. In 2009 the number of visitors to Singapore fell by 4.3%.

According to a report in Reuters, Las Vegas Sands expects to recoup its US$5.7 billion within five years, anticipating EBITDA of US$1 billion a year, which is rather above analysts’ predictions. The two IR projects are expected to generate combined revenue of as much as US$3.5 billion in 2011 when the properties are fully functioning. However, local citizens and residents must pay SG$100 (US$73) per day or SG$2000 per year for access to the casinos.

The success of the two Singapore casinos will be closely watched by other Asian nations considering Las Vegas-style gambling. Others, used to attracting the Asian high-rollers, will be watching also. Already Crown Casino in Melbourne, Australia is upgrading its VIP facilities. In March the company announced “more than $200 million will be spent to improve the premium player facilities at the Crown Entertainment Complex, further enhancing it as one of the world’s leading integrated resorts.” The project is scheduled for completion in the first half of 2012.

It is hoped the investment will strengthen Crown Melbourne among its peers in Macau and Singapore. Executive Chairman James Packer commented, “Having looked at the best of what is on offer from other leading integrated resorts in the world, we are consolidating Crown Melbourne’s leadership position in the international premium player market. On completion, our premium facilities will rival the best in the world and allow Crown Melbourne to compete successfully in this very competitive sector of the global tourism market.” (E-04.28.10)

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