SINGAPORE: Singapore is poised to be the second
biggest gaming destination in the world after
Macau.
Last year, analysts had made the same prediction but
the outcome from the two integrated resorts in Singapore fell short
of this expectation.
Analysts are confident that after Marina Bay Sands
(MBS) strong numbers, gross gaming revenue from the two local
integrated resorts may overtake Las Vegas Strip by end of this
year.
MBS raked in gross gaming revenue of over US$2 billion last
year.
Meanwhile, its rival Resorts World Sentosa recorded net gaming
revenue of close to US$2.6 billion in 2011.
Analysts said the combined gross gaming revenue of Singapore's two
casinos is about US$5.7 billion.
This is just a shy away from the total gaming revenue of US$6.1
billion collected from more than 20 casinos along Las Vegas
Strip.
With MBS's recent strong first quarter showing, some analysts are
upbeat that Singapore's gaming industry will overtake Las Vegas
this year.
MBS posted net revenue of US$848.7 million in the first quarter
this year. Its casino earnings rose 51 per cent to US$701.3
million.
Terence Wong, co-head of research at DMG and Partners Research
said: "For this year, it should be able to take over Las Vegas as
the number two top gaming spot globally and that is on the back of
huge masses going over there (Marina Bay Sands) and on top of that,
I think VIPs are much sort after. RWS already has their own
international marketing agents which bring them (patrons) over
here."
Analysts expect Singapore's gross gaming revenue to hit US$6.5
billion this year versus the Strip's US$6 billion.
Experts said Singapore remains attractive to the high rollers
because it offers more than just gaming.
Unlike Macau where gaming accounts for 90 per cent of its economy,
there are other tourist attractions and activity for the family
too.
Director of corporates at Fitch Ratings Nandini Vijayaraghaven
added: "Gaming in Singapore is stable to positive, it is a
preferred tourist destination. It is a regulated market with two
casinos, both operating under long licence period and in
exclusivity period build within the licence period."
Casino patrons' stay in Singapore is usually longer on each visit
of around four days.
This helped boost income from the integrated resorts as well.
In the fourth quarter last year, data from the tourism authority
show that tourists spent S$1.3 billion in sightseeing and
entertainment including gaming.
Richard Linstrom, dean at University of Nevada, Las Vegas,
Singapore Campus, said: "Las Vegas Sands has a kind of unique
expertise in the high rollers upscale market, I think it'll be
difficult for regional operators over the short term to match that.
I think over the longer term there'll be adjustments by all the
companies in Asia and there'll be room for everyone to
compete."
Genting Singapore will report its earnings, which includes Resort
World Sentosa on 10 May.
Analysts expect gaming revenue from Resorts World Sentosa to
increase but it may fall short of the performance shown by
MBS.
- CNA/ck