Analysts continue to do a 180 from their cautious outlook on Singapore five years ago. Among those raining plaudits on the early performance of the city-state’s two megaresorts is Jonathan Galaviz of Galaviz & Co. He estimates that Singapore will be a $2.5 billion market by the end of next year, with Marina Bay Sands (above) raking in $1.5 billion and the rest going to Resorts World Sentosa. Since those are projected gross revenues, it’s premature to say what how much of that will translate into profitability. (“A lot,” obviously.) Marina Bay gets Galaviz’s nod partly for its central location and also for superior accessibility.
In a research note, the analyst suggests taking a “cautious and prudent” tack toward estimates of a $4 billion/year market. He points to a real estate bubble in China that could easily collapse, presumably taking VIP play with it. “The casino gaming industry is highly and ethically regulated in Singapore (following the page from Nevada’s playbook,” Galaviz writes, “and we strongly advocate that Singapore maintains its strict regulatory approach to this industry. In fact, the stronger regulatory and ethical framework that Singapore maintains for this new industry, the more likely that [Resorts World] and [Marina Bay] will be able to attract a new kind of customer in Asia.”
An interesting concept, that? Care to elaborate? I’m all ears.
All guesswork. All have succumb to the Sands hype.
I think Las Vegas Sands will get killed in Singapore because they cannot use junket which comprises 70% of their Macau business.
Resort World Sentosa is in a better position because they have existing clientele in Malaysia and Singapore ( Star Cruises ).