How long Singapore's casinos will take to break even

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How long Singapore's casinos will take to break even

Postby DM101 » Thu Apr 01, 2010 1:03 pm

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SINGAPORE: Singapore's two integrated resorts with their casinos have gone over budget, according to a panel discussion on the subject on Tuesday.

The discussion was organised by the Singapore Press Club and Asia Journalism Fellowship.

The panelists said the casino operators have overpaid for bidding and building the two integrated resorts.

Resorts World Sentosa (RWS) spent S$7 billion on its development instead of its original target of S$5.2 billion.

Marina Bay Sands will spend S$8.4 billion, up from the original S$5 billion.

The question now is how long they will take to break even, but the panelists acknowledged it is still too early to assess their viability.

However, they raised other issues.

They said that RWS appeals to a mass market. But with an estimated daily taking of S$3.5 million, it seems to suggest they are not breaking even yet.

Universal Studio's future is also questioned, once the novelty wears off.

"My only hesitations about RWS is more to do with theme parks," said Sean Monaghan, managing director of AG Leisure Partners. "Disney in Hong Kong had a troubled start, so trying to predict the viability and the feasibility of theme parks can be more problematic."

According to gaming analysts, Marina Bay Sands should draw in S$5 million a day in the initial stages.

It has also positioned itself to cater to a more niche market of high quality gamblers, coupled with its MICE appeal.

Ronald Tan, a gaming analyst, said: "They have a very established theme at the moment, and they have also the Macau casino, and a huge data base of gamblers, quality gamblers from China... I think they will capitalise on that as well."

The panellists said that the higher start-up costs would mean the resorts must look for more ways to increase revenue.

Source: http://www.channelnewsasia.com/stories/ ... 43/1/.html
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Re: How long Singapore's casinos will take to break even

Postby Afternoon » Thu Apr 01, 2010 1:13 pm

Cannot break even 1..... Unless transfer their share to Singaporepools then gahment more willing to lift the $100 levy and load of gamblers start flocking in.
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