Daily tourist arrivals to surge when IRs operational in 2010

Daily tourist arrivals to surge when IRs operational in 2010
By Wong Siew Ying, Channel NewsAsia | Posted: 16 April 2007 1947 hrs



SINGAPORE: Singapore can expect a surge in tourist arrivals, with the daily number set to jump by some 55 per cent when the two integrated resorts are operational in 2010.

Trade and Industry Minister Lim Hng Kiang announced this at the ground breaking ceremony for Singapore's second integrated resort at Sentosa.

He said the tourism outlook remains positive and hoped businesses can exploit the new opportunities created.

The $5.2 billion Resorts World at Sentosa will feature a Universal Studio theme park, the world's largest oceanarium, and six world-class hotels.

It is slated to be fully operational by mid-2010.

Together with the Marina Bay Sands project, the resorts are projected to add another 2 to 3 million visitors, bringing the total tourist arrivals to 14 million in 3 years.

"Going by the current growth rate, this will represent a significant 25 per cent increase over the 11 million visitors that we are projecting for the year 2009. Combined with the expected increase in the length of stay from 3.4 days in 2006 to 3.6 days in 2010, this means that the number of visitors per day will increase significantly by 55 percent - from about 90,000 in 2006 to nearly 140,000 in 2010," said Minister Lim.

There will also be a buzz for other sectors.

Resorts World has some $508 million worth of projects to be tendered for over the next few weeks, with most of them expected to go to Singapore companies in the form of sub-contracts.

Among the projects are: an 8-hectare land reclamation project in front of the old ferry terminal, re-routing traffic and excavation works.

All in, Resorts World will offer some S$3 billion worth of construction and development contracts leading up to 2010.

Business deals aside, a hot topic at the ground-breaking ceremony was whether Genting had cleared the necessary checks to obtain the licence to operate the casino at the integrated resort.

"The Ministry of Home Affairs just put out a statement to reiterate our stand on probity checks. Resorts World at Sentosa understands our need to maintain this probity checks and there is no issue now. We are only looking at our jurisdiction, who the partners and shareholders participating in Resorts World Sentosa," said Mr Lim.

Genting acknowledged that it is still early days yet to apply for the licence.

Under the rules, an application can only be made after half of the investment amount and gross floor area of the project have been completed.

But Genting is making good progress in its move to distance itself from business tie-ups with Macau's gaming tycoon Stanley Ho.

Lim Kok Thay, Chairman of Genting International, said: "The disposal of the Macau investment by Genting International has already been concluded. What is outstanding is the disposal of the outstanding purchase of 25 per cent in Sentosa by GIL to StarCruises. That's waiting for shareholders' approval."

On the manpower front, the two new resorts are expected to add up to 60,000 jobs to the economy.

The Singapore Tourism Board will also launch a 3-year campaign - starting this year - to prepare the workforce for careers in the hospitality sector.

Resorts World, which is set to create over 10,000 jobs, says it will not rule out hiring mature workers, the disabled or ex-offenders. - CNA/ir