Sentosa Singapore is in trouble. Outsourcing its management and
planning is arguably the only option the government has in order to
save it.
By John Pennington, edited by Francesca Ross
The entertainment resort Sentosa Singapore is marketed
as “Asia’s Favourite Playground” and “The State of Fun”. It may
still be fun, but visitor numbers – both to Sentosa and to
Singapore in general – are falling. The decline has been steady
since 2010, with a 35% drop
between 2015 and 2016.
Several attractions have closed down; Fantasy Island,
Underwater World, Dolphin Lagoon are all gone after failing to
attract enough visitors when similar attractions opened nearby.
Accidents and fatalities, including that of a
construction worker in 2014, have damaged the resort’s
reputation.
The opening of Resorts World Sentosa had a huge impact on
Sentosa
Sentosa is controlled by the Sentosa Development
Corporation (SDC) under the purview of the Ministry of Trade and
Industry. Resorts World Sentosa (RWS) shares the island with SDC
and is developed and managed by Genting Singapore, part of a global
conglomerate specialising in resort management.
While Sentosa flounders, RWS prospers. SDC brought in
revenues of more than S$200
million (US$147 million) in 2015, RWS’s turnover was more
than S$2 billion (US$1.5 billion). Genting Singapore’s revenues for
2016 stood at S$557.7
million (US$397.2 million).
There was a boost for the whole island when RWS
launched in 2010 but it now grabs the lion’s share of visitors.
Association of Singapore Attractions (ASA) chairman Kevin Cheong
calls it the “front
door” of Sentosa, saying it “overshadows the identity of
Sentosa as an island.” The management of the SDC is aiming for a
“vibrant
island resort with multi-faceted appeal,” but is sadly
falling short.
Sentosa
visitor arrivals (million)
Source: SMU
Social Media Singapore
Foreign and local tourists are flocking to RWS and leaving Sentosa
behind
RWS’ Universal Studios and Sea Aquarium are well
advertised but older attractions are not. “We heard that some work
has been done to the area, but we only knew about Universal
Studios. When we finally got here, we saw that there were other
things to do…that might be something for (the older attractions) to
work on,” explained Ray
Swanson, an Australian tourist.
Sentosa’s other problem is that local visitors are not
interested. They feel that the attractions do not offer good
value.
Tourism is evolving and Sentosa must adapt to keep up
The nature of resort tourism has also changed. “Tour
agencies used to bring visitors to us. Now, many travel
free-and-easy and must actively choose us,” the ASA’s man Cheong
explained. Resorts and attractions must now be far more proactive
in order to attract and retain customers, especially in the face of
newer, more integrated resorts.
Soon after RWS opened cam Marina Bay Sands (MBS). In
its first year, it attracted 19.6
million visitors and sustained high visitor numbers for
the years that followed. Those two resorts sweep up the bulk
of the country’s gaming
revenue in their casinos and are regular features on
“must-do
lists” of foreign tourists.
Sentosa also loses out to resorts in neighbouring
countries. “In the past, there was no regional competition. Now
countries like the Philippines and Cambodia are all fighting for a
slice of the pie,” Cheong added.
Approval for an integrated resort and
casino on
Mactan Island in the Philippines has just been granted. An
integrated resort in
Bavet City, Cambodia is planned and even Vietnam
is gambling on
similar projects.
Work is being done to refresh Sentosa
The SDC is now working on its 2030 masterplan for the
island, but is that timeframe too slow? Bavet City could be
operational by 2019 and Mactan Island by 2022. There are fears
Sentosa could end up even further behind.
Experts suggest the older Singaporean resort
should switch from
family-orientated activities to more youth-orientated activities.
They could attract more people if their offer was significantly
different from RWS.
“The island has to think about what the tourists really
want,” Nanyang Polytechnic’s Shirley
Tee said. “RWS has recently started the Malaysian food
fair and now they have a Korean one, but we need to think for
ourselves, tourists are coming over and they want something truly
local and authentic. Something like a Singaporean-style hawker
centre, maybe?”
SDC could expand Sentosa but also needs to take on board feedback
and advice
The underutilised southern islands, which also come
under SDC’s remit, were earmarked for development before plans were
shelved in 2007. One idea is a “getaway”
resort enabling tourists to escape from the city. Significant
investment would be required to develop there, but it could pay
off.
The government has urged the tourism industry
to come
up with unique content but it hinders that process by
maintaining control. Sentosa needs a huge overhaul. New attractions
are needed. Older ones need to be updated. A proper advertising and
marketing plan needs to be developed. The project’s management and
planning must be more effective.
SDC’s team acknowledge they need help. “In our
continual efforts to strengthen the island’s value proposition for
guests, SDC is inviting international and local urban planners,
architects and their allied consultants to assist in the planning
of the next phase of Sentosa’s development,” said branding and
communications director Tay
Cheng Cheng.
Outsourcing would provide opportunities for fresh development and
new ideas
It would not be a step into the unknown for the
resort’s leadership to collaborate with other developers, or
outsource the planning and management of the resort
completely. IMDA previously came in as a partner in
the Green
Wi-Fi programme.
This would require significant organisational
restructuring as SDC is also in charge of four subsidiaries –
Sentosa Leisure Management, Sentosa Cove Resort Management, Sentosa
Golf Club and Mount Faber Leisure Group.
Sentosa needs fresh ideas and proactive management and
the government is not in a position to deliver. Up against the
likes of Genting Group, who manage resorts all over the world, now
is the time to outsource to companies and developers with the right
experience and expertise to take Sentosa forward.