More room for casino growth, say analysts
Analysts Channel NewsAsia spoke with say the success of casino resorts in the city-state will continue to drive demand for similar services in other parts of Asia.
First, Genting Singapore announced its entry into the Korean gaming market via a US$2.1 billion investment in Jeju together with a Chinese property developer.
Then came property developer OUE and its project for an integrated entertainment resort in South Korea. The project valued at about 855 billion won, or S$1 billion, is being developed by a consortium comprising OUE, Lippo and Caesars Entertainment Corporation.
As land space in the two biggest gaming destinations, Macau and Singapore, reach capacity, casino operators are turning their attention elsewhere.
“There’s a lot of focus in Japan about entering and opening new resorts and granting new licenses,? said Greg Unsworth, Singapore media and entertainment leader at PwC.
?The integrated resort concept is one that is particularly appealing. It’s seen as a new successful model, built on what’s been done in Singapore and its success here.
?There is a lot of interest? but there is a time frame involved in the roll out of these facilities. Even in Japan, they are not expected to roll out any plans till 2015, so Korea is the next target for international gaming players.”
But that does not mean the high rollers will give Singapore a miss.
In fact, industry watchers say it is the combination of gaming and non-gaming activities that has given tourism a boost.
Adam Weissenberg, vice chairman of travel, hospitality and leisure at Deloitte, said: “If you look at the integrated resorts here, it’s not only gaming but you also have shopping, the restaurants and shows. So there’s a whole bunch of visitors coming to Singapore and everyone’s seeing this and saying, ?oh my god, this is something nice to replicate?.
?I do think that’s why you would look at somewhere like Japan that doesn’t have that type of gaming right now and say if we opened some integrated resorts, that would add to the Japanese tourism.”
Click here to read more.
Source: Yvonne Chan (2014). More room for casino growth, say analysts, Channel News Asia http://www.channelnewsasia.com/news/business/singapore/more-room-for-casino/1048100.html published Mar 25, 2014. Viewed Mar 27, 2014.