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Casino aces to boost Singapore
economy
SINGAPORE - In an
unprecedented move, Southeast Asia's tiny
city-state has laid its cards on the table and
revealed not one but two economic aces up its
sleeve. On Monday, Prime Minister Lee Hsien Loong
confirmed that Singapore will allow the
construction of two integrated casino resorts that
will reap US$5 billion in investments, create
35,000 new jobs and provide a $1.5 billion boost
to the economy annually.
The nod for the
two large-scale integrated resorts - each with a
casino component - amounts to a historic decision
that could transform not only the tourism industry
in the city-state but the wider economy as well.
According to government officials, the
decision to legalize gaming and develop the two
casino resorts - coming on the back of comments
from former prime minister Lee Kuan Yew that the
world could pass by Singapore if it did not have a
casino - was made in an effort to boost tourism in
the city-state. By targeting the regional tourism
market, Singapore hopes to tap into a chunk of the
$23 billion that industry sources predict Asians
will spend annually on gambling by 2010.
The integrated resorts, slated for
construction at the Marina Bayfront and Sentosa,
could double Singapore's visitor arrivals - with
knock-on benefits for industries ranging from
hotels, retail, transport, conventions and
meetings to air travel and entertainment.
The development of the two casinos,
scheduled to open in 2009, could also draw
tourists who otherwise go to casino resorts in
neighboring Malaysia and Indonesia, where
Singaporeans themselves already spend about $340
million annually.
That concerns many
community and religious leaders who, despite the
government's aim to attract more visitors, worry
about the social cost legalized gaming could have
on their communities. According to a survey done
by US consultants, the Innovation Group,
Singaporeans spend nearly US$1 billion a year in
overseas casinos. Other local surveys have
indicated that Singaporeans are heavy gamblers,
served by state-controlled lotteries, sports
betting and horse racing, which raised an
estimated S$1.5 billion (US$918 million) in
gambling taxes for the Singaporean government in
2002-03. Numerous critics have protested the
project since it was officially mooted last
August.
For the moment, however, analysts
view the new development as an added attraction
for the region. The Genting Group said Monday's
decision to lift the four-decade ban on casinos in
the city-state presents a significant investment
opportunity for the company.
The decision
to establish Singapore's first casino will also
give Australian gaming operators Tabcorp Holdings
Ltd and Publishing and Broadcasting Ltd a chance
to establish a potentially lucrative toehold in
the growing Asian gambling market.
Late
last December the Singaporean government gave the
green light to more than a dozen casino bidders to
tender for the construction of a Las Vegas-style
casino and entertainment resort in the city-state
in an attempt to compete with the lucrative
gambling market in Macau and with other regions in
Southeast Asia considering setting up gambling
establishments. In the months after the invitation
was floated, Asian countries such as Malaysia,
Nepal and Indonesia, as well as both South and
North Korea, jumped on the gaming bandwagon (see
An ace to trump Macau's,
February 1).
Tabcorp is among a host of
international gaming companies to submit proposals
to the Singaporean government for the project,
which is expected to cost about S$2 billion
(US$1.21 billion). The gaming and media group
Publishing and Broadcasting is also part of a
joint venture bidding for one of two casino
licenses.
Tabcorp managing director
Matthew Slatter described the Singaporean
government's decision as an exciting step and a
reflection of the maturity of the Singaporean
community.
"Tabcorp is extremely excited
by the opportunities for an integrated resort to
contribute to the economy, the tourism sector and
the lifestyle of everyone in Singapore through the
transformation of both the Marina Bay area and
Sentosa Island," Slatter said. "Tabcorp is
confident that Singapore will develop a
world-class system of regulation and support to
ensure the casino operates within a strict
regulatory framework."
Slatter said
Tabcorp looked forward to the Singapore government
announcing the next steps in the integrated resort
project. Tabcorp's concept for the project
includes luxury hotels, a theme park, casino,
restaurants, premium retail outlets, major events
and Broadway shows.
Once the integrated
resort is completed in 2009, Singapore expects
most visitors to come from Southeast Asia and
China's rapidly growing middle class.
For
now, details are slowly emerging about what the
two integrated resorts could look like - despite
the thick veil of secrecy surrounding the design
concepts by the 19 bidders. The resorts could
include hotels, a convention center, retail
outlets, dining, entertainment and theme
attractions.
(Asia Pulse) |
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