The rapid development of the tourism sector made Singapore an appealing destination and admittedly the country has a lot to offer to visitors from all over the world. But is the thriving tourism industry beneficial to the growth of the gambling sector? What kind of facilities are preferred by the tourists and whether they are likely to indulge themselves in gambling activities or not? The latest reports, concerning the economy in Singapore, show the following:
Representatives of one of the most popular venues in Singapore – Marina Bay Sands, say that their guests prefer the leisure facilities offered and the amount of money, spent on the casino floor, is significantly smaller. Guests admitted that what made them book with Marina Bay Sands was not the opportunity to take part in gambling activities but to enjoy the magnificent infinity pool.
Guests of Las Vegas Sands Corp. in Singapore are supposed to pay almost $500 per night but the reports show that the revenue for the third quarter has decreased. As a matter of fact, the tourists are willing to stay in the luxurious venue but their desire for gambling is not really strong and the revenue, which has dropped by 34% YOY confirms of that statement.
Overall, the situation with the gambling sector in Asia is not too bright. Macau – the major gambling hub on the continent, reported that October has been the worst month ever.
Despite the efforts of the authorities to maintain the high standard and to keep the tourism sector thriving, the latest statistics show that the number of tourists who have visited Singapore during 2014, was well over 10 million, which means that the decline is 3,3% year over year.
The hopes of the casino mogul Sheldon Adelson, that the industry will get better, turned out to be unrealistic since the shares of his company, Las Vegas Sands, fell by 24%.
However, the Genting Singapore Plc., reported the steepest downfall of 29%. This result made the market analysts really concerned about the future of the company and they hurried up to put forward different ideas for improving the situation.
Needless to say, the immense number of attractions and leisure facilities, available at Marina Bay Sands, made it the most expensive and the most preferred hotel in Singapore. During the third quarter of the year, the hotel was almost fully occupied. The percentage of occupancy in hotels in Macau and Las Vegas was smaller, which made the market experts convinced of the bright future of the Singaporean venue.
Although the accomplishments of Marina Bay Sands look outstanding at first glance, the authorities reported earnings, equal to $352 million, which means a 5,9% drop, compared to this time last year.
Alan Richardson, a manager of a Hong Kong based company, commented that the main reason for the downfall in the sales is the decreased number of Chinese tourists, who are believed to be big spenders when it comes to gambling and leisure. Their number decreased by 29%, mainly because of the actions of the Chinese President towards limiting corruption and the troubles with the visa approvals.
Authorities of Marina Bay Sands remained tight lipped about the exact number of guests who take part in gambling activities. Anyway, the revenue from high rollers fell by 34% YOY. The representative of Genting Resorts also refused to comment the main reason for the rapid decrease in sales.
According to surveys, conducted by prominent market experts, Genting is about to announce a net income of approximately $108 million for the third quarter of the year. The income from VIP gaming activities is not expected to be pleasing as well.
After a careful examination of the situation, most experts concluded that the improvement of the tourist sector in Singapore doesn’t contribute to the annual gambling revenue too much and more efforts need to be made in that direction.
