29 June 2009

Resorts World Sentosa trims visitor forecasts

MACAU - The two gaming and entertainment resorts in Singapore are moving ahead rapidly although Genting-owned ResortsWorld at Sentosa has cut its visitor forecast for next year by three million. That is 20 per cent below its original 15 million target.

Resorts World at Sentosa says it will complete all structural buildings by July 2009, 27 months after it broke ground in April 2007.

The 49-hectare resort is on track for an early 2010 soft opening.

It will house south east AsiaÃ¢â¬â¢s only Universal Studios theme park, the worldÃ¢â¬â¢s largest oceanarium, six hotels, a casino and a palette of Las Vegas-styled entertainment, restaurants by celebrity chefs and retail shops.

Destination Macau, which has its ear very close to the ground in Macau, says it understand that July 8 is the date for the topping-out ceremony at Las Vegas Sands (LVS) Marina Bay resort in Singapore, adding, Ã¢â¬ÅâœIf we all thought that building the Venetian Macao was the biggest gamble of Sheldon Adelson's career, it ain't nothing compared to what's going up in Singapore.

Ã¢â¬ÅâœThis amazing property will cost more than double what the Venetian Macao did. It will have significant non-gaming facilities, which are supposed to contribute a hefty chunk towards EBITDA in the range of US$1 billion a year by the time it fully hits its stride, probably in 2011.

Ã¢â¬ÅâœBut gaming still forms the dominant part of expected revenue, and it is based on very aggressive forecasts for visitors and win rates. Ã¢â¬~¨Ã¢â¬~¨Ã¢â¬~

Destination Macau adds, Ã¢â¬ÅâœAdmittedly, the two Singapore properties are supposed to target distinct visitor demographics, and so ResortsWorld's revised forecast might not mean LVS should do the same.

Ã¢â¬ÅâœBut given the scrutiny being placed on City of Dreams (in Macau) right now, it is not unimaginable that pressure will be brought to bear on LVS management to get real about their visitor targets closer to the opening day. Ã¢â¬~