Singapore, the host of IAAPA’s 2011 Asian Expo, has a unique combination of a safe, clean environment, a highly educated workforce and a thriving high tech economy which look set to make it a hot spot in Asia for the attractions industry. Following on from the article Lion City Roars in 2010, examining the reasons for Singapores record breaking visitor numbers, Blooloop looks at some facts and figures from Genting Singapore Plc showing the financial impact of the integrated resorts.
Genting Singapore Plc’s newly opened integrated resorts epitomise the key features of the rebranded Singapore, with a concentration of world class attractions, hotels and visitor experiences. In 2010 the investment is starting to bear fruit.
Q2 Results for Genting Singapore Plc
Resorts World Sentosa’s phased opening began in January 2010, just under 3 years after breaking ground, with its four hotels – Festive Hotel, Hard Rock Hotel Singapore, Hotel Michael and Crockfords Tower. In February 2010, the casino opened, followed a month later with the opening of Universal Studios Singapore and then Marina Bay Sands.
Genting Singapore Plc reported strong results for the quarter ended 30 June 2010:
- Universal Studio Singapore increased its daily maximum capacity to around 8, 000 with an average visitor spend of S$84.
- Resorts World Sentosa hotels’ occupancy was 70% with an average room rate of S$263.
- Singapore Integrated Resort (Singapore IR)recorded revenue of S$860.8 million and EBITDA of S$503.5 million for the second quarter of 2010 with EBITDA margin standing at 58%.
- Genting Singapore Plc’s total revenue for the period was S$979.3 million and EBITDA was S$513.9 million. Singapore IR therefore delivers 88% of the Group’s revenue and 98% of the EBITDA. [NB Genting Singapore is looking to sell its UK Casino operations (to Genting Worldwide (UK) Limited) to be able to focus on its Singapore developments.]
- During the six month period to 30 June 2010, Resorts World at Sentosa Pte Ltd (“RWSPL“) drew down the remaining S$900 million from its syndicated loan facility to finance its construction and development of the integrated resort bringing total drawdown to S$4.0 billion as at 30 June 2010.
- RWSPL spent a total of S$826 million for construction work-in-progress and other property, plant and equipment during the six months to 30 June 2010. (As at 31 December 2009, RWSPL’s investment in the integrated resort stood at S$6.59bn.)
RWSPL has commenced construction of the West Zone, which comprises the Maritime Xperiential Museum – featuring one of the world’s largest aquaria, the Marine Life Park, a destination spa and luxurious accommodation at its Equarius Hotel and Spa Villas. The West Zone is expected to commence operations progressively from 2011 onwards.
Genting Singapore Plc’s Chairman, Tan Sri Lim Kok Thay, says, “We have taken our vision from drawing board to reality with the opening of Resorts World Sentosa… We will continue to grow and strengthen our position as the world’s integrated resorts and gaming specialist”.
Images courtesy of Singapore Tourism Board