Big news in the international gambling scene, as the Marina Bay Sands has finally opened. From the Financial Times:
Singapore has imposed a charge of S$100 (US$73) a day or S$2,000 a year for residents to visit the tables as a way of calming vocal opposition to the casino developments from locals who fear a spread of gambling addiction and crime.
The government is also encouraging people with a gambling problem to add themselves voluntarily to a national blacklist of people who will be refused entry to the casinos.
However, analysts say the two resorts are likely to generate a flood of well-heeled overseas tourists, adding up to 1.6 percentage points to gross domestic product in a full year, according to official forecasts.
The government wants to buttress the island state’s burgeoning financial and manufacturing sectors with tourism earnings of S$30bn in revenues by 2015 – triple today’s figure.
The US$5.5bn Marina Bay Sands, a stunning development on the waterfront in the city’s business district, boasts a 1.2 hectare skypark, spanning three hotel towers and floating 220 metres above the pavement. The area is likely to become something of an architectural icon, even though the skypark bears a passing resemblance to a stranded boat.
Sheldon Adelson, chief executive of Las Vegas Sands, confirmed on Tuesday that the company expected to recoup its investment within five years, with a Singaporean contribution of more than US$1bn a year to earnings before interest, tax, depreciation and amortisation.
Genting’s development, the US$4.7bn Resorts World at Sentosa, opened in February. It appears popular with punters, although no figures have been published.
The resort, located on an offshore leisure island, will have four hotels when it is fully open, together with a Universal Studios theme park and the world’s largest oceanarium alongside the gaming tables.
via FT.com / Companies / Travel & Leisure – Singapore opens second casino resort.
Extrapolating from the information in the article, the Singapore government wants to use the casinos to triple tourism revenues to S$30 billion. That means they expect the casinos to add S$20 billion a year in total revenue, which is about US$14.6 billion.
The entire Las Vegas Strip, which includes two dozen casinos and more Cirque shows, ultralounges, and meeting rooms than you can count, made $13.8 billion last year. Even with a theme park at Sentosa Island, I’m not sure expecting two casinos to lead a $14.6 billion increase is realistic.