Sentosa IR
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Hello? It's a whale shark we're talking about here.Originally posted by shade343:Oh...underwater world at sentosa dont have it?
The biggest fish in the world. -
genting ideas for behind than the others
so no chance 100% -
BATTLE ROYALE Today Newspaper 16 Nov 2006
Barbs on design light up Sentosa IR tussle
Jasmine Yin
[email protected]
AFTER the gentler jousts for the Marina Bay integrated resort, the struggle for Sentosa is turning out to be a more edgy affair.
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The gloves came off yesterday morning when Eighth Wonder dropped a broad hint that its rival had submitted a design that was not so original. As the day wore on, it emerged that Eighth Wonder's own concept for the Sentosa IR echoed a proposal it had made for a Las Vegas project — 10 years back.
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It was Mr Peter Marino, Eighth Wonder's architect, who threw the first jab in the battle for the originality stakes.
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"I saw Frank Gehry's design and like all his works, it's very sculptural and interesting," said Mr Marino, about the offering by rival Kerzner Capitaland's famed architect. Then, he added: "I recently saw a proposal that he made for (the Jardin d'Acclimatation) museum in Paris which looks remarkably similar."
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Both designs involve a heavy use of glass as a medium, a departure from Mr Gehry's usual metal-clad structures.
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But Today understands that Eighth Wonder's fictional character — Harry O'Brien — that's the centrepiece of its proposed Harry's Island bid, is not too original either.
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Although its chairman Mark Advent — who dreamt up the character some 12 years ago — had said Harry's Island "will belong only to Singapore", it appears that Sentosa wasn't the first place that "Hurricane" Harry aimed to conquer.
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According to a Las Vegas Business Press report published in July 1996, Mr Advent had planned to build a US$20-million ($31.2-million) Hurricane Harry's Casino and Adventure Emporium on Las Vegas' Sunset Road.
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The paperwork had been completed and necessary clearances, including the gaming licence, already acquired.
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Spanning six acres, the project was to include four restaurants, a 9,000-sq-ft casino, microbrewery, travel agency and an adventure emporium with a three- storey-tall climbing wall.
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But the plan failed to materialise and resurfaced a decade later in Singapore.
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Asked about this, Mr Advent refuted claims of recycling a failed idea. He said he decided to pull the plug on the casino-restaurant project, as he wanted to create an even bigger property around the Harry O'Brien character, which he had already secured a trademark for.
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And in the first place, he went ahead with the Vegas project because "in the United States, you can't just secure a trademark without using it". "The rule is 'use it or lose it'," Mr Advent said.
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He added that he "knew instinctively that Sentosa was the home for Harry" when the site was first announced in 2004.
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Asked why did not make any mention of the defunct proposal in Las Vegas, he said it was because "it was not material". He added: "I've always said it was a 12-year-old idea."
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I believe all three bids are outstanding in their own right, but I wonder if certain angles have not been explored given our Asian heritage.
We could have the largest LAN gaming arena in the world by Sony Entertainments, an Anime Universe with the best of Japanese and Hong Kong cartoons as well as a media zone with contributions from Korea Broadcasting Station, CCTV , NHK, HK TVB and Bollywood stars and Indonesian singers brought in to helm our live shows. We can have a gigantic ASIAN restaurant manned by the top chef from each asian country, cooking up a feast from Tibetan cuisine to the best of Bengal. We can have excavation adventures, deep-sea odysseys, submarine journeys and space exploration in Long March rockets. We could harness GoogleÂ’s YouTube and celebrate Asian Family, Culture and the Arts. We could have a gallery of Asian youth expression, hawking streetwear, voodoo and basking. We can have a 24 hours foam-party and the largest dance floor in the world- celebrating Asian music and techno. We could have a myriad of mass market to top end Asian fashion and cultural wears from barong to batik to Kimono. We could have the worldÂ’s most comprehensive static display of Asian dance and folk lore or even Asian martial arts like Shaolin, Taekwondo and Silat. We could also have Robotz World from Toyota/Honda as well as a massive museum celebrating Asia on the world stage- our past, present and future.
Otherwise how does Singapore compare with the multitudes of IR s already in Las Vegas and more to come in Macau? Will we be as American or European as both of them?
What better way to celebrate Singapore as a potpourri of all things ASIAN- given our multicultural outlook- than to promote ourself as an oasis of Asian charm. This unique feature is uniquely Singaporean and should not be lost in our theme. Why do we want to transplant an Igloo and pretend to be an Eskimo or pretend to be French and dine Ducasse? Do we need to destroy our ecosystem and build a volcano when many countries like Indonesia and the Philippines- have real volcanoes? All these we know can be replicated anywhere in the world- tomorrow in Macau, Japan or Thailand.
Ducasse has branches in US, France and even Japan. It is already present in Raffles Hotel, Singapore. Likewise, Vera Wang can be found in boutiques in most major cities of the world including Singapore. The thing is how many can afford to know that they are in our midst? What makes us a compelling destination to World and Asian travelers is our bid to promote ourselves as an integrated Asian experience set upon a sunny island and a garden city yet cosmopolitan and modern to the core.
It is important that as we select the winner that we understand how important it is that the Sentosa IR must fit the bill perfectly in our overall tourism package and respect our landscape and cultural and historical identity. Otherwise, as the future unfolds and the Asian gaming industry grows rapidly-as we are sure it will- with IR s mushrooming from Bangkok to Johor to Bangalore, each trying to be more iconic than the other; only our uniqueness and strong sense of identity will ensure the timelessness and continual allure of our tourism strategy and preserve our place in the sun. -
Wah seh......uncle Meat Pao is impressed by you. Uncle think you should at least send a few letters to the committee.
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ai yo.. easy guess lah....
remember not so long ago alot of land on sentosa already sold to some group of special people?
so the winner will be the one that can increase the value of those land the most lor... u think they care so much about theme, jobs, investment?
please wake up... -
Hi I hope Genting unveils it trump card yet. With Singapore Cruise Centre and a new Cruise centre at Marina South , I hope Genting can retrofit one of its cruise ships and replace bunks and kitchens with more sea-based amenities.
This maiden cruise ship can be an extended platform of the Sentosa IR! Privileged and people with loyalty points can board a shuttle bus from Sentosa to the cruise centre for a free cruise to the Southern Islands/ Bintan/ No where. The cruise can also be opened to the masses at $50 per pax for 4-6 hours of cruise bringing about " Starcruise- now everyone can sail"
On board the revelry continues with games, swimming , beach ball, slot machines for children, live shows , movie screening while whole families can enjoy the sea breeze on the sun-decked while listening to a brief safety demonstration.People who never used to have the time or money for a lengthy cruise ride can now have an abridged version on Sentosa Isle! This experience in the high seas will complete the whole spectrum of Oceanarium , aquarium , dolphin quest and water rides to remake Singapore as a cruise hub and a centre for sea and water-based activities. This fits the bill as Sentosa is a tropical sunny isle and Singapore a garden city utilising the sea as a vital lifeline.
More high heeled customers can opt for longer cruises to Bintan Isles for spa at the Bintan Resort Corp or sail to Langkawi/Malacca or even further afield to HK! Imagine the allure to world and asian travellers who can package a tour of Singapore (4 days incl 1 Day F&E shopping, 1 day at universal studio, 1 day at Marina Sands and Singapore Zoo/Night Safari and 1 Day on Sentosa Isle )before boarding the cruise for one day at Bintan Resort Corp(owned by Spore) then set off for 3 days at Taman Negara and Malacca/Port Klang.
Singapore can be the centre of SEA in spearheading packages to our neighbouring countries being already a hub for budget travel and aviation! Catch a flight to Changi budget terminal and then book a package on one of our inbound tour operators/STB and have a try! -
MERRILL Lynch has tipped Genting International as having a 75 per cent chance of winning the Sentosa integrated resort bid, although the investment bank report goes on to say that losing the bid could send Genting's stock down by 30 per cent to 27 cents a share.
In the report, released yesterday, Merrill Lynch scored each of the Sentosa bids on total tourism appeal, architectural design, investment and strength of the consortium - the same criteria as the government is using to judge the bids.
The investment bank gives Genting International a total score of 88 per cent, while the Kerzner International-CapitaLand consortium scored 82 per cent. Eighth Wonder came in with the lowest score, at 79 per cent.
Overall, the report said that Genting International has a 75 per cent chance of winning Singapore's second casino licence.
It added that a win for Genting could see its stock jump 22 per cent to 47 cents a share with a 30 per cent possible downside if it fails. It said a win for CapitaLand could see the stock rise to $6.50 a share, while a loss could see the stock drop to around $5.70 a share.
CapitaLand shares closed 15 cents up at $5.90 a share yesterday, while Genting International shares remained unchanged at 38.5 cents.
Based on the process used for the Marina Bay licence, the report reckons that a government decision on the winning bid could come between the dates of Dec 4 and 8.
In evaluating the bidders, the report also took into consideration market knowledge, operational leverage, tourism delivery and execution risk.
'We believe Genting will be viewed as having greater market knowledge, given it is the only bidder to have operated in Asia,' the report said. 'Kerzner has not operated in Asia previously, and its expertise lies more as a property company than gaming. While Eighth Wonder has pulled in Publishing and Broadcasting Ltd (PBL) and Melco into its syndicate, we question the value given the small shareholding.'
The report said Genting can build on its experience with Star Cruises and Genting Highlands, as well as UK casino company Stanley Leisure, although the Eighth Wonder consortium may find it 'difficult' to use its PBL and Melco ties, given the 'regulatory challenges this syndicate may face in combining its Singapore operations with Macau'.
In analysing the individual bidders, the report also looked at the strengths and weaknesses of each.
It noted that Genting International had market knowledge, operational leverage, a Universal theme park, a good record on probity, and stability. It said the 'only weakness' in Genting's bid was that 'Genting is a Malaysian company'.
For the Kerzner-CapitaLand consortium, the report said that its Frank Gehry-designed resort 'appears to excite various academics and architects', and noted Kerzner International chairman Sol Kerzner's 'reputation for developing world beating attractions'.
'Our principal concern lies in the US$3.3 billion investment, and the fact that with such limited local knowledge and experience in the Asian gaming market, how are they going to effectively compete with Las Vegas Sands and achieve an adequate return to shareholders,' the report said.
On Eighth Wonder, the report said a clear strength was the 'level of creativity' associated with its proposed Harry's Island concept, as well as its 'varied list' of partners.
However, it also noted that the 'almost eclectic group of unrelated attractions gives us the impression the group was trying every means to find partners to join to make the bid look more impressive'.
'Syndicates that form an amalgam of eclectic entities can often have trouble establishing a shared vision, and importantly, holding the vision,' the report said.
The government has said that tourism allure will account for 45 per cent of the marks upon which bids are judged, followed by design at 25 per cent, while investment amount and investors' track record make up 20 and 10 per cent respectively. -
Atlantis-like Resort is DA BOMB!Originally posted by VivId CrItiQuE:i hope kerzner wins.. i can imagine an Atlantis Resort in Singapore, better than tt in bahamas.. oh man.. paradise...
We don't have that kind of paradise in sg and we need that! -
yeah man yeah.. go kerzner.. bring paradise to singapore!
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dun wanOriginally posted by VivId CrItiQuE:yeah man yeah.. go kerzner.. bring paradise to singapore!
i wan my theme park 
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dun wan..genting can go malaysia what. so near sg what. Unlike Atlantis Resort, we must travel all the way to Bahamas.Originally posted by Chelzea:dun wan i wan my theme park -
genting no theme parkOriginally posted by pokkagreentea:dun wan..genting can go malaysia what. so near sg what. Unlike Atlantis Resort, we must travel all the way to Bahamas. nid to go US play universal studios -
There seems to be a lot of undercurrent support for Kerzner given the Capitaland stake as many Singaporeans are invested in Capitaland. Even Today newspaper, a publication from Mediacorp indirectly coowned by SPH and Temasek defers in support for Kerzner based upon the most trivial reasons-Such as Sol Kerzner attending the presentation to our TAA rather than his own son's funeral.
One needs to take one step back and look at the whole picture to see what is at stake in Singapore. Comparing the Las Vegas Scene and Macau , Singapore is looking at peanuts with 2 IRs. Macau has a fisherman's wharf with already a man-made volcano that is 40 m high , thus 8W's Harry's Caldera is not iconic at all. Macau will have Crown Casino opening early 2007, with multiple casino-resorts opening in 2008 and 2009 far before we will smell the first IR visitor. And we are talking about Las Vegas Sands already established in Macau and attracting Shangrila, Starwood, St Regis, Morton's and the up and coming Venetian.
Macau and LV are of a different league what with the Cotai strip and the transformation of Las Vegas and Atlantis City on a greater scale than Singapore.
Therefore unlike LV or Macau , we do not have the space , political will to have 5-10 IRs , at least not in the next 10 years.
Thus realistically, no matter how zany the features in all three bids, be it robotics , iconic architecture or volcanoes, one thing that is certain is these can easily spring up in Macau and throughout Asia tomorrow and beyond. For instance, Singapore cannot claim to be the one truly unique destination based on Gehry's glass-based architecture as it is already being built in Paris as we speak. An iconic feature causes Ohhs and ommphs from visitors who will associate Singapore with it that brings the place instantly to memory.
What will do the job is to fall back on great unique multicutural ethos as well as our tropical, clean and green garden city image that is different from Korea, Japan or Hong Kong. Looking at the tourism websites of all the has-beens and wanna-bes in Asia and in the world, Singapore's STB website truly lack a magnet that will cause visitors heart to skip a beat or plan a holiday around a tour to Singapore.A universal studio will be an immediate catalyst to resuscitate this lack; when all other countries are fighting for the same pie Macau , HK and Thailand.. with varying success. It will meet our short to medium term needs till 2015 until our 3rd and 4th IR comes along. Hk already has a Disney for one year. We will have our Universal Studio only in 2009 - the earliest.
Taking a huge risk with someone with no indepth knowledge of the Asian market while attempting to differentiate ourself from Macau and other world destinations will truly be a huge gamble for our tourism planner. Won't we rather have a market player with stability and market know-how to execute a successful plan that will anchor the face of sentosa for the next decade , esp since Genting has more 20 years experience wooing and attracting Chinese, taiwanese, Malaysian , Singaporeans and Indians. Till today Genting is profitable and till today nearly 500 Singaporeans travel to Genting daily .This is undeniable. The draw and experience will prove crucial if we are to do the same in the face of competition from Marina Sands and other operators in the region.
This lack of know-how is so tell tale when we see 8W offerings and Kerzner's previous offerings which so far is designed to please an American or European crowd. 8W in particular stands on shaky ground given that Melco-PBL is already raising USD 1 billion on the US Nasdaq for its two casinos in Macau in 2007 and 2008.Only Genting may be able to pull off a bid with an offering tailored to Asians, Families and repeat visitors, with the necessary probity , stability and steadfastness.
Capitaland has said it will dwell in IRs in China should it fail here. It will devote energies in bringing in a second theme park in Disney in due time. With two world class theme parks in close proximity in Singapore, we will be a huge draw. There is plenty of opportunity for Atlantis-Kerzner or Capitaland to devote its resources on the Southern Isle which it is most suitable for. Genting with Starcruise at the enlarged Marina South Cruise Centre is the best complement for Sentosa Isle and Singapore as well as our tourism strategy and is certainly something that Marina Sands will want.
We want a win win situation for all. -
I note that there is heated debate on the Sentosa IR as many Singaporeans are invested variedly and have strong opinions on what they want on the 2nd IR. Notwithstanding, none of these arguments will make a difference to the decision as the govt is adopting a pragmatic, transparent and unbiased approach. More answers perhaps can be found in the original intentions of the two IR s which PM spelled out in parliament on 18 April 2005.
In summary, he made the case for our IR as Singapore was losing ground in tourism with visitors spending less time here as we were seen as boring and could not pull in the crowds. Second, other cities are reinventing themselves and we run the risk of being left behind. Third , the IR is an integrated leisure and entertainment zone with just a small portion of gaming and not just a casino.
Thus he concluded from the proposals that we needed two IR s which will complement each other, attract different types of visitors and offer a broader range of offerings for tourists. The one at Marina Bayfront should cater to MICE and complement our skyline as a business and financial hub. The other at Sentosa should be a family-friendly resort attracting families and repeat tourists coming for a holiday and provide Sentosa with a large-scale anchor attraction.
Reading the lines on the govtÂ’s intentions, investors will then have a better idea where to put their money. I attach an abridged version of PMÂ’s speech below:
Parliament speech: Three major developments caused us to re-examine our position:
=Tourism Trends=
First, we are losing ground in tourism. Tourists are spending less time in Singapore as we are seen as unexciting and have not been investing in tourism infrastructure projects that are crowd pullers. Writers from Hong Kong and Taiwan laugh at us, saying that Singapore is like water that is too clear, so that there is no fish. Many jobs are thus at stake .
=Cities Reinventing Themselves=
The second major development is that cities all round the world are reinventing themselves. In Asia, Shanghai is full of drive and energy. Hong Kong will open its Disneyland very soon. Malaysia is also hosting Formula One racing, and Kuala Lumpur is buzzing with tourists from the Middle East. We run the risk of being left behind.
=Not a Casino, but an IR=
This leads to my third point, which is that we are not considering a casino, but an IR - an integrated resort. In fact, they should be called leisure, entertainment and business zones. The IRs will have all kinds of amenities - hotels, restaurants, shopping, convention space, even theatres, museums and theme parks. Genting gives us some idea what the IR may look like. Genting started off as a casino with an attached hotel, but now it has many other amenities: good hotels, numerous food outlets, theatres, a huge amusement park, etc. Many Singaporeans go there for short holidays with the whole family, and not to gamble.
=RESULTS OF RFC=
The Bayfront and the Sentosa sites attracted two very different types of proposals. The Bayfront is suitable for a large business and convention facility. The target market are MICE visitors. This is a high value market. We wanted one that will enhance the cityÂ’s skyline, and complement our role as a business and financial hub.
Sentosa is suitable for a family-friendly resort, attracting families and tourists who are coming for a holiday. At Sentosa, investors are also prepared to spend 2 to 3 billion dollars to develop the IR. This will transform an area (47 ha) that is equivalent to the size of the Zoo (28 ha) and Bird Park (20 ha) combined. It will bring to Sentosa a large scale, high quality anchor attraction which it has so far lacked. There will be theme parks, resort hotels, restaurants, shopping and many other attractions, enough to satisfy the critics who say there is not enough to do in Singapore.
Assessment
The Bayfront and Sentosa developments complement each other. Each will attract a different type of visitor, and together they enable Singapore to provide a broader range of offerings for tourists. -
Hi angelfia,
good analysis.
Many people seem to think that Genting will win the IR proposal, myself included.
Nonetheless, it's never a sure thing till the results are out. Any idea when in Dec 2006 is it going to be announced?
Bernard -
The favourable coverage from Business Times Lim Kok Thay's interview, a Straits times feature on Craig Venter to Dreamwork's Spielberg are good signals compared to an ambivalent coverage of Gehry and Eighth Wonders' Vera Wang hotel. There is also a positive article on Genting today in ST.
On all counts, Genting is the best choice and adds to the overall package for Sentosa island and Singapore. It will complement Marina Sands best.
I will examine this question from another approach compared to what other analysts have described based on marks ( tourism appeal, architecture etc)
We have to always keep at the back of our mind that we will have two IRs ONLY. No more , no less. So we have the pick the best two for the benefit of Singapore. Singapore will be sending the wrong signal to the rest of the world, should it play the nationalist card, be less than transparent, or pick only proposals with local company partners.
Let's start first with this:
Sands has great experience in BTMICE having started Comdex, Genting has great experience with family and repeat customers. Sands cater to Europeans and Americans, Genting/Starcruise caters to Asians such as Malaysians, Singaporeans, Chinese and Indians. Sands is tailored for the noveau rich, Genting caters to the budget. Sands has a huge MICE offering, little shopping, alot of fine dining,weddings, live theatres Sentosa goes big on theme park, spa, museum edutainment. Very different offerings. Very different composition.
Further its looks as though Sands can pull of a Marina Sands with revenues mainly from non-gaming MICE activities just like Genting can pull off profits from Universal Studios with its huge numbers alone. This augers well with our Govt's initial promise to limit gaming to a small portion of the whole IR slate. And make us less dependent on the casino element.
Sands leverage on a successful Venetian and Macau as well as its extensive network of BTMICE connections, just as Genting leverages off its extensive marketing, sales, operators and distributor network in Asia through Genting Berhad , Genting International and Star Cruise. Further , Genting also has synergy with Stanley Leisure in UK. Sands has a proven track record, so does Genting. Sands offers a European/American perspective to an IR built around luxury, poise and sophistication. Genting offers an Asian perspective with Asian offerings of singers and performers.
Sands is an American company , while Genting is the only Asian company.
Sands will appeal to the well-heeled , while Genting's affordability and sustainability will pull in the budget conscious. Sands project augers with Singapore's image as a financial and business hub while Genting's offering augers well with Sentosa's image as a tropical island paradise. Sands blends in with our marina,city centre skyline, while Genting blends in with the flora and fauna and preserves the natural landscape of sentosa island. Sands caters to the niche market, Genting caters to the mass market.
Just like we need a CIP Luxury Terminal , an Economy/Business Class terminal and a Budget Terminal, we need two different IRs to cover the full spectrum of visitors to pack the most punch and get the most tourism revenue out of this IR revolution. We have only two chances and these two must complement each other.
Their similarities are also very clear. Sands has a proven and executable plan, Genting also has a proven and profitable plans with runaway success in Unversal Studios and clear numbers. Sands has good financial background, Genting's financial resources are solid. Sands and Genting both have limited local partners and thus will bring in the full investment value as foreign money is pumped into our economy with its ensuing mulitiplier effect. It will also limit the risk of failure from our GLCs. Sands is best in the Mice business, Genting is the best in the asian family resort business ( while Macau is a largely gaming resort until the Americans came). Both are relatively low key proposals but meets the tender requirements best.
If Singapore continues to go by hard-nosed calculations and given the concurrence that the public as well as analysts both pick Genting as the winner, I think Genting has a good chance.
Mah Bow Tan, National Development Minister, says: "We have published the documents and the tenderers are fully aware of the requirements and what Singapore is looking for.
"We'll go through the proposal in detail and at the end of the day, make a decision based on the criteria, which is an objective one and which is one that we believe will bring the most benefits to Singapore."
You have to remember the selection panel must also have very strong grounds to back up their choice and explain to all Singaporeans as well as the two losing bidders and satify all of their doubts. It seems at this stage that they will have the easiest job should they pick Genting.
We may know once Vivian comes back from HK and Tokyo this Friday. -
Check this out. Its presents a surprisingly refreshing perspective of our IR bidding process. 8W is already dismissed as a grab-bag and its seems that they have offered fresh ideas of Melco-PBL as an equity partner.
If 8W wins this IR bid , it means Melco-PBL will be spending way more than Burswood casino , the casino it paid for in Perth. It will also mean spending on a more expensive project than Marina Sands which it initially dropped out for lack of funds and financial viability.
Gehry's The Sail also appears to have taken a beating in the maintenance aspects...
On the table now is Sentosa , initially touted to be cheaper than the Marina Bayfront IR but now has ballooned to nearly SGD 6 Billion dollar if 8W wins the bid. Can they pull it off?
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Last resort (with casino) in Singapore
By Gary LaMoshi
Gambling stocks are on a roll. On Wall Street, the Dow Jones Gambling Index is now tripling gains of the broad market index. Harrah's, the world's largest gaming operator with 60 casinos, is mulling a US$15 billion bid from a pair of private-equity firms. The Las Vegas Strip has defied fears that growth would sputter in the face of high fuel prices.
But the real excitement is in Asia. Steve Wynn opened his $1.2 billion Wynn Macau in September, and in November shares skyrocketed to new highs for all three US players in China's gaming enclave. Las Vegas Sands, which operates the Sands Macao, the first US-style casino in the former Portuguese colony, reported a 39% rise in third-quarter revenues.
Macau is on pace to surpass the Las Vegas Strip with gambling revenue of $7 billion this year, and the party has barely started. Next year, MGM Mirage premieres a joint-venture project with Pansy Ho, daughter of Macau's gaming dean, Stanley Ho. On landfill joining Macau's outer islands of Coloanne and Taipa, LVS will open its flagship Venetian Macao, anchoring the new Cotai Strip of a dozen more hotels and casinos, more than 1.2 million square feet (111,500 square meters) of convention space, and another million square feet (92,900 square meters) of retailing. In a recent interview, Steve Wynn said, "Macau is in the path of a huge avalanche" likely to overwhelm the region.
New kids on the block
With all this excitement about Asia, you'd think casino companies would be fighting to get a piece of the action by - pardon the expression - hook or by crook. In Macau, one of six gaming licenses sold for $900 million in March.
But in Singapore, bidding for a casino license - guaranteed to be one of only two in this crossroads of Asia for at least a decade - has tempted only three groups you won't find in the Vegas casino listings and that most US players have never heard of. The underwhelming competition shows Singapore is doing something either terribly wrong or very right.
Last year, Singaporean Prime Minister Lee Hsien Loong's government made the controversial decision for limited casino liberalization. To many, the move seemed out of character with the city-state's straitlaced reputation. Lee, son of Singapore patriarch and current Minister Mentor Lee Kuan Yew, was out to prove it wasn't his father's Singapore anymore.
For Singaporeans, the decision was doubly surprising because, rather than allowing a single casino as expected, the government proposed two sites for so-called integrated resorts. Two casinos would broaden appeal and sharpen offerings through the magic of competition with only a marginal increase in social costs, the government contended.
Bay adds Sands
The first site, Marina Bay near the downtown financial district, attracted three Vegas heavyweights, LVS, Harrah's MGM Mirage - the latter two partnered with government-controlled Singapore property developers - plus Genting, best known for its Genting Highlands resort in Malaysia. LVS got the nod for its US$3.65 billion triple tower with 2,500 hotel rooms, a public park the size of an aircraft carrier 50 stories in the air, and Southeast Asia's largest convention center.
A decision on the second integrated resort site on Sentosa Island - the name means tranquility - is due this month. But the only interest came from Genting, which has the most to lose through cannibalization from a casino next door; Kerzner International, developer of Atlantis in the Bahamas; and Eighth Wonder, designer of the New York, New York casino in Las Vegas, heading a grab-bag group that includes Australia's top casino operator Publishing and Broadcasting Ltd and partner Melco International of Macau (see An offer they couldn't refuse, November
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"The three proposers who have submitted their proposals for the integrated resort on Sentosa are three accomplished players, and we look forward to announcing the successful proposer in early December," Singapore Tourism Board integrated-resorts director Margaret Teo said.
Steady dwindle
Still that's a far cry from the 19 respondents, representing more than two dozen of the biggest names in gaming and leisure, that expressed initial interest in Singapore's casinos. In some cases we know what happened. Steve Wynn accused the government of trying to micro-manage the process, though he now says he might try again if Singapore opens the door to more casinos. As the Marina Bay winner, LVS is barred from consideration. MGM Mirage's partnership deal with CapitaLand for Marina Bay included an agreement not to bid for Sentosa, so that the developer could team with Kerzner there.
"Harrah's was actually quite excited about pursuing Sentosa," Cornell-Nanyang Institute of Hospitality Management dean Dr Judy Siguaw revealed. The company engaged her school to put on a special public seminar to show its commitment to the community, Siguaw said. "Of course, the Harrah's buyout has understandably thrown a crimp into the Sentosa bid."
Among the rest, some may have been scared off by the size and scope of the projects, grown far more costly than initial projections. The Sands Marina Bay will be the most expensive casino ever built, starting with land cost of more than US$800 million. The Sentosa project, with land price half as high but 19.4 hectares to fill, was originally forecast to cost just half to two-thirds as much as a Marina Bay project. Instead, Sentosa proposals budgets more for development than at the Sands Marina Bay.
A handful
"These are very large projects that require huge investments and careful adherence to extremely detailed plans with long staying power to deal with the large front-end costs," Singapore Management University president Howard Hunter explained. "I think there are only a handful of potential bidders with the capacity to meet the requirements."
Genting's US$3.2 billion Resorts World at Sentosa proposal includes a $1.6 billion Universal Studios theme park, plus an oceanarium - a very big aquarium - a water amusement park, and an interactive maritime museum, plus six hotels with 1,800 rooms, shopping, tie-ins with its Star Cruises subsidiary, and design by postmodern icon Michael Graves, whose resume includes work at Disney's Florida properties. That's the least expensive proposal on the table.
Kerzner and CapitaLand propose Atlantis Sentosa, a US$3.3 billion futuristic water world designed not by Kevin Costner but architecture legend Frank Gehry. Features include glass-encased sails wired for image projections, a water theme park, the world's largest man-made coral reef, and a botanical garden, all mixing live and robotic plants and animals.
Hunter said: "The Gehry design is stunning but, having been an administrator for a long time, I wonder about engineering the HVAC [heating, ventilation and air-conditioning] systems with all that glass and also ask who is going to clean the mildew that will accumulate on the glass in this tropical climate."
Harry's other island
Eighth Wonder's US$3.5 billion bid includes a laundry list of attractions from a Deepak Chopra well-being and retreat center to a soccer academy under Pele to another contender for the world's largest man-made coral reef under Philippe "grandson of Jacques" Cousteau with 10 hotels with 2,100 rooms. The centerpiece is a man-made extinct volcano surrounded by a saltwater lake with 35 rides and attractions called Harry's Island, after Harry O'Brien, the fictional founder of the resort, born in 1900 at Raffles Hotel.
Harry also happens to be the western name Lee Kuan Yew adopted as a student in London. Eighth Wonder chairman Mark Advent may or may not know that but it hasn't escaped the notice of one local blogger. Dr Huang Shoou Chyuan says the "cheap marketing ploy ... reveals the people of Eighth Wonder for what they are - low-class desperados!"
That may be harsh, but it does underscore that it's hardly the Who's Who of the global gaming and leisure business stumping up for Sentosa. "The big mistake was to limit the number of licenses to two," Brewerkz microbrewery founder Devin Kimble believes. "It made the odds so long that I think many other operators just didn't want to put in such a huge effort for such a slight chance at winning a place.
"In addition, Singapore has a very clear agenda for the IRs [integrated resorts]. It really doesn't want gambling. The casinos are in effect just a way to guarantee a return for investors to put in a convention center and theme-park-type attraction. And this takes a special type of operator.
"If Singapore had just opened the doors and said, 'Show us what you got and what you want to spend,' the bidding would have been frenzied."
The Poker Face of Wall Street author and former Malaysian resident Aaron Brown thinks the problem is more localized. Referring to Sentosa's previous Malay name, Pulau Belakang Mati, Brown said, "With all the expansion in Asia, Backstabber's Island may not be a winner. It's not physically nice, despite billions of [dollars in] cosmetic surgery, access is poor, despite the new light rail, and it's Singapore, which has both rigid regulation and peripheral location."
Most international casino companies seem to agree with Brown that there are better bets out there.
Gary LaMoshi has worked as a reporter, author and broadcast producer in the US and Asia since the 1970s. Longtime editor of investor rights advocate eRaider.com, he's also a contributor to Slate and Salon.com, and a counselor for Writing Camp.
http://www.atimes.com/atimes/Southea.../HL02Ae01.html -
Hi anglefia,
heard that the decision will be announced this Friday.
Disclosure: Vested in Genting.
Bernard -
Genting it is.
Bernard -
continue discussion in sticky in speakers corner.
thank u