Tan Kin Lian's Blog: Resort World Sentosa

Friday, March 19, 2010

Resort World Sentosa - how's business?

Last week, I posted an optimistic analysis by UBS about this resort. In today's papers, there is a suggestion that the crowd for the opening of Universal Studios was below expectation. Some observers had speculated that visitors to the casino has also been disappointing - although the management refuse to comment or give any figures. However, I hear that the taxis are doing good business, possibly due to higher tourist visits.

When Marina Bay Sands open next month, there will be additional competition. So, it is a confusing situation. Any news from insiders?

21 comments:

Anonymous said...: I am unsure if yesterday's heavy downpour affected the Opening of Universal Studios.; March 19, 2010 8:52 PM
Anonymous said...: I think Universal will fail, but who's going to bear the losses? Singapore investors and banks?; March 19, 2010 11:51 PM
Anonymous said...: Mr. Tan,
please propose some suggestion on corporate governance for the FIs and the insurers.
The current board of ntuc is made up of rubber stampers. Why no challenge from the board?. Are the independent directors dead wood also.
The upcoming AGM please raise the question of transparency as to remuneration of board members and the ceo.; March 20, 2010 12:03 AM
Online Income said...: It should be great cos I heard the rides are good.; March 20, 2010 12:03 AM
Jessica said...: I read in the news that they deliberately limited the nos of tickets to Universal Studio on the first day/ week because they didn't want to overly stress the system.

I believe this is not some PR stunt to cover up lack of ticket sales, because I knew of two colleagues who wanted to get tickets for their family but didn't managed to. They sold out the limited tickets.

I guess after the crowd control issue when the casino opened over the CNY, they are trying to do what they can for Universal Studios to prevent similar chaos. I mean, it'll be even worse image if there were never-ending queues in the hot sun, or if the systems were over-stressed and broke down.

I'm optimistic; March 20, 2010 12:06 AM
Anonymous said...: “The good thing about Singapore is that if you flop, you are given a second chance.”

I read above quote given by a somebody regarding our IRs.

How true and not just IRs. If there is govt support and blessings behind it, everything got 2nd chance.

Including even the mandate for PAP at every election. Voters here like to forgive and forget, maybe due to no better choice.

Hahahaha; March 20, 2010 12:36 AM
Anonymous said...: Dear Respondent,

My name is Nikko and I am a student from International Hotel Management Institute Switzerland, Luzern. I am inviting you participate in a research project to study Singapore residents’ perception of the gaming industry as part of my requirement for the Bachelor (Honours) in International Tourism and Events Management. Attached to this letter is a short questionnaire that asks a variety of questions about (1) residents’ positive and negative perception and the (2) level of support for the
gaming industry. There are in total 10 questions and it should take you about 10 minutes to complete. Please fill out an e-survey at ...

http://www.surveymonkey.com/s/9RPN36Q

Your participation in this study is voluntary and you may withdraw at any time. Rest assured that all replies are anonymous and will be treated with confidentiality. If you have any questions or concerns about completing the questionnaire or about being in this study, you may contact me at nikko.aw@gmail.com

Thank you very much in advance for your time and efforts.

Sincerely,
Nikko Aw; March 20, 2010 5:02 AM
Anonymous said...: It's a learning curve for everyone. It's safer to start a pace where everyone is comfortable. It is only phase 1 of the resorts. More to come. Business should pick up.; March 20, 2010 6:48 AM
Anonymous said...: Fact of the matter is that Casino and USS are here to stay.

Given the singaporeans' appetite for travelling, the importance of tourist dollars and the increasing numbers of visitors, the above will succeed. It is also important for the Govt to make it a success as it was their decision to bring this in as well as generating empolyment and income after 3 years of budget deficit.

[One wonder why Universal Studio previously agreed to setup in Malaysia and ended up in Sgp? I am presently amazed with the speed of completion of USS i.e from concept to opening. This is one up for Sgp]

The entrance price of USS is at least 1.5 times lower than US-LA thus making it attractive for people who visit it.

From $ prospective, why travel all the way to US [about 21 hours flight] when you can can enjoy new good rides in USS saving you lots of S$ in air tickets.

Yes, I will visit with my family only probably after 6 months. It is a good fun thing and I bet my last dollar that USS will be more successful than Disneyland in HK or Japan. While I hate the Casino but what to do, it is already here. I just have to instill to my children that gambling is evil and hope they do not fall into it.; March 20, 2010 8:52 AM
Anonymous said...: Bangkok has mass protest. Why SG resident still go there instead of USS?; March 20, 2010 1:27 PM
Anonymous said...: Mr. Tan

I am a casino-resort expert in Asia. The fact is, both the IRs require to maintain 75% casino revenue ratio of the total revenue of IR for the first five years at least!. Otheriwse, it is extremly hard for them to survive and achieve EBITDA, margins & free cash flow that satisfy their syndicated loan replayment agreements/convernance.
The IR investors gearing is very high at 70%.
With a total of S$13b in capital investment, the two IRs basically go in with $10 for $1 ROI.
It is projected that realistically Spore's casino annual revenue can only reach 20% of what Macau is generating. Many thought that it could be more, but it is an irrationally high expectation! based on the lukewarm performance of RWS casino. Genting Spore stock price after the IR casino opened is a clear indication. MBS coming onboard, the competition will be worse, as patrons won't increase by 2 folds suddenly.
Theme parks in tropical climate is a great great challenge to succeed. And worse still, by the time the Korean largest Universal Studios (20x of Singapore's) opens in 2014, the game is over.

- Casino-resort Expert (Asia); March 20, 2010 2:05 PM
Anonymous said...: I believe the $100/- entry fee for Singaporeans will be short lived!; March 20, 2010 5:28 PM
Anonymous said...: Well, in my case, I have a granddaugther and for her 4th birthday in a June, I am bringing her to USS , in fact being Singaporean, I have already purchased the tickets, to be honest I am quite proud to have USS in our "backyard" and I would expect to bring her again in 1 yrs. time

I believe those with kids will make the effort to bring their kids to USS, especially the more well off in the ASEAN region. It will do reasonablely well, is my assessment.; March 20, 2010 6:03 PM
Anonymous said...: The novelty and luster will wear out in a year's time and like all amusement parks it will be closed or modified....free cash flow will be a problem because no inflow of cash.; March 20, 2010 7:08 PM
Anonymous said...: "I believe the $100/- entry fee for Singaporeans will be short lived!"

May I add to it? Will only happen after election....

Pre-election gimmicks like reduction of foreign workers, differentiate between citizens and foreigners etc. Mind you, more will come. Reversal will happen after election which by the way is normal tactics use by the ruling party.; March 20, 2010 7:23 PM
Anonymous said...: When the novelty & luster wears off
like Haw Par Villa and other failed attractions, they will resort to:
Buy 1 Get 1 free!
Up to 80% Discount!
Maybe 50% off Entry Levy at Casinos for a limited time!
or admit 2 for the price of $100/-?; March 21, 2010 2:30 PM
Anonymous said...: We better watch out: ..Competition is coming:

21 January 2010, By Property Report Asia
Genting Group, announced it is looking into developing more projects – a mall, a resort and an “interactive theme park” in Iskandar Malaysia in addition to the Resort Word Sentosa (RWS). The statement was shared by chief executive officer, Lim Kok Thay, at the company´s 45th annivessary celebrations in Kuala Lumpur yesterday.

Asia´s largest publicly traded casino operator along with US-based Simon Property Group in a joint-venture, have already invested RM200 million (S$83 million) in a shopping complex. It is also in the midst of planning another larger-scale development to attract more visitors and make “Iskandar a hub”.; March 21, 2010 2:42 PM
Anonymous said...: We can decide if USS is going to work out after the mid year school holidays. However, there will always be competition.; March 22, 2010 10:42 AM
Anonymous said...: Will be a White Elephant when the WORLD FINANCIAL strikes?; March 22, 2010 3:54 PM
Anonymous said...: Poll as At 2130hrs dd,24/3/2010

The Resorts World casino has been open for about a month now. What do you make of it?
Fantastic, it's everything I wanted a casino to beAlright, could do with better crowd control thoughBeen there once, not ever going back again. No thanks, I'll pass
Vote to see results

Click here to see results without voting

The Resorts World casino has been open for about a month now. What do you make of it?
Fantastic, it's everything I wanted a casino to be
7% Alright, could do with better crowd control though
15% Been there once, not ever going back again.
9% No

However, the POLL is on going!; March 24, 2010 9:35 PM
Anonymous said...: The complete resort is over priced and they are charing full rates for NO FACILITIES. Typical LOW LEVEL of service for Singapore. The Manager didn't even speak English to me over the phone. I would recommend flying to another location -- like Hong Kong or the US and enjoying yourself!!! It's really poor.; April 20, 2010 4:12 PM