No compromise to concept of IRs, with small portion for
gambling
By Imelda Saad | Posted: 18
May 2010 1803 hrs
SINGAPORE : There will be no compromise to the
government's concept of an Integrated Resort (IR) - that allows
only a small proportion for gambling.
Senior Minister of State for Trade and Industry, S Iswaran, made
this point while addressing a question in Parliament.
For punters, it is clear that the main draw to Singapore's two
Integrated Resorts - Resorts World Sentosa (RWS) and Marina Bay
Sands (MBS) - are the casinos, which were launched during Phase One
openings of the resorts.
Mr Iswaran said such phased openings are common for large scale
projects.
"From an operational perspective, phased openings are necessary to
allow the IRs to work through operational issues and to allow
employees to familiarise themselves with their new roles and gain
confidence for the ramp-up in activities," he said.
"It allows developers to work out operational issues and iron out
staff training. We must recognise that these are multi-billion and
multi-decade projects," he added.
But the casino licenses will be granted only when authorities
establish that at least 50 per cent of the Gross Floor Area (GFA)
is completed and at least 50 per cent of the Development Investment
(DI) has been expended.
Mr Iswaran said: "This was to ensure that the casino would be
allowed to operate only when a significant amount of non-gaming
facilities were opened and the integrity of the Integrated Resort
concept upheld."
As committed, when the IRs are fully open, gaming areas will take
up less than 3 per cent of the Gross Floor Area for Marina Bay
Sands and less than 5 per cent for Resorts World Sentosa.
Mr Iswaran pointed out that both IRs have, in fact, opened
significant non-gaming facilities.
He said: "RWS soft opened with Universal Studios Singapore (USS),
its theatre, part of the Festive Walk, and four hotels. The next
phase of its development will include the addition of new
attractions in USS, the premier of a locally created circus theatre
show, a Marine Life and Water Theme Park, and a Maritime
Experiential Museum.
"MBS' preview opening included a significant amount of non-gaming
areas such as 963 hotel rooms, retail outlets, restaurants, bars
and MICE facilities. MBS expects to open its remaining facilities
such as the Skypark, Theatres and Museum by end-2010."
He also addressed concerns from opposition MP Low Thia Khiang that
many Singaporeans were hitting the casinos. He felt there is a
novelty factor at play, but pledged that agencies are monitoring
the trends closely.
Hougang MP Low Thia Khiang said: "There are reports that most
visitors to the casinos are actually Singaporeans, is that a
concern of the government?"
Mr Iswaran replied: "Obviously we want to ensure that Singaporeans
who choose to go to the casinos give due thought to that before
they go in and not do it on an impulse - which is why we have a
whole slew of measures that have been put in place.
"It would be fair to say that there is a novelty factor in place,
and to say that whatever we see at play in terms of numbers, in
terms of performance in the first few weeks and months is an
accurate predictor of what will be happening 12 months, 24 months
down the road, I think may be stretching the argument a little
bit."
"I think what I can assure the member is that the agencies are
monitoring the situation closely and I think once we have a better
sense of the patterns and trends, then I think we will better know
how the measures we have put in place are working."
On hiccups faced by conference organisers at Marina Bay Sands
recently, Mr Iswaran said Singapore's reputation as a top city for
MICE events is not determined by the outcome of a single
event.
Singapore hosts 6,000 business events annually, accounting for a
quarter of such meetings held in Asia.
"You see the integrated resorts having teething problems regarding
its hotel rooms, its conference facilities, its roller coaster but
funnily enough not their casinos," said Nominated MP Calvin
Cheng.
The conference by the Inter Pacific Bar Association was besieged
with problems, ranging from a power failure to lack of air
conditioning.
Mr Iswaran replied: "It is not uncommon for projects of such a
scale to encounter operational glitches when they commence
operations. Nevertheless, it is regrettable that delegates at a
recent conference found their experience at MBS to be
unsatisfactory.
"I understand that MBS has taken the feedback of its clients into
consideration and is already taking steps to address these issues.
To put it in perspective, Singapore plays host to 6,000 business
events annually, and accounted for more than 25 per cent of the
meetings held in Asia in 2008.
"Notable MICE events we have hosted in the past include the
IMF-World Bank meetings in 2006 and the APEC Summit in 2009, as
well as business events such as the World Dental Federation
Congress of 2009."
It may still be early days to say just how much the IRs will
contribute to Singapore's tourism dollar, but together, both IRs
have contributed more than S$12 million worth of investments.
They are creating about 20,000 jobs - of which about 80 per cent
have already been realised, with a significant proportion going to
locals.
- CNA/al
