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Integrated resort : Resorts World Sentosa

An integrated resort (IR) is the term used by the Singapore government for a casino-based resort. Following intense public debate, the government decided in 2005, to develop two IRs in Marina South and Sentosa . Three different consortia submitted their proposals to build the Sentosa IR on 20 October, 2006. Genting International eventually won the bid. The resort is set to be launched in early 2010.

Background
Singapore's government decided that two casino-based resorts would be developed in Marina South and Sentosa with the aim of boosting the tourism industry in Singapore. The resorts would also help to create more job opportunities. The IRs would have world-class amenities such as hotels, restaurants, shopping, convention centres and theme parks. The decision was followed by a six-month consultative period which saw much public debate as several communities openly protested against the decision. Issues raised included concerns that the casinos would result in increased compulsive gambling and undesirable activities linked with gambling such as loan sharks and organised crime. 

In order to meet such concerns, the government agreed to implement safeguards to limit the negative impact of casino gambling. Singaporeans would be charged an entrance fee of S$100 per entry or a fee of S$2,000 per year if they wish to enter the casino. Casinos would also be prohibited from extending credit to Singaporeans. 

The IR in Sentosa was envisioned as a large-scale, family resort with themeparks, hotels and shopping facilities. Three consortia bid for the IR in 2006. They were Eighth Wonder/Publishing and Broadcasting Limited/Melco International Development Limited/Isle of Capri Casinos Inc, Genting International/Star Crusies/Universal Studios and Kerzner International/Capitaland. Harrah's Entertainment/Keppel Land pulled out of the race before the deadline. All bids were reviewed by a ministerial committee and a tender evaluation committee. Genting International won the bid with Resorts World at Sentosa when results were announced on 8 December, 2006.

Despite winning the bid for the resort, Genting International was warned by the Casino Regulation Division of Singapore's Ministry of Home Affairs that it was still subject to scrutiny and a casino licence was not guaranteed. This was due to concerns by the Singapore government over Stanley Ho's stake in Star Cruises. Genting International and Star Cruises had jointly won the bid to build the IR in Sentosa. Genting International responded by buying over Star Cruises' 25 per cent stake in the IR.

Progress
Genting International is investing S$6.59 billion in Resorts World, designed by American Michael Graves. As the IR is opening in stages, up to 60 per cent of it, including four hotels (Maxims Tower, Hotel Michael, Festive Hotel and the Hard Rock Hotel Singapore), the casino, the Universal Studios theme park and retail and dining outlets would open in the first quarter of 2010. The remaining attractions like its Marine Life park, marine museum and two more hotels (Equarius Hotel and Spa Villas) would be opened in 2012. 

Two world's firsts will be created in the Universal Studios theme park. They are attractions based on Madagascar and Shrek. The theme park will feature 24 rides and attractions as well as themed dining and shopping outlets. Prices have not been announced but are likely to be on par or cheaper than tickets for Universal Studios theme parks in the United States and Japan.

The first event scheduled to be held in Resorts World is ChildAid, a charity concert to raise funds for children. The event would be held from 19 December to 21 December 2009 at Festive Grand, a 1,600-seat theatre in the resort. The resort would also have state-of-the-art security with shatterproof glass and structural reinforcements in case of possible terrorist attacks. 

Genting managing director Justin Tan fielded the queries but gave little away, sticking closely to disclosures already made in a circular sent to shareholders before the meeting.  

Author
Tan Yee Lin

 

References
29,000 people to be automatically banned from Singapore's casinos. (2008, September 30). Channel NewsAsia. Retrieved October 12, 2009, from Factiva.

Brown, K. (2009, October 6). New family resorts add casino lure. Financial Times, Retrieved October 12, 2009, from Factiva.

Goh, E Y. (2007, May 29). Genting gets nod to buy Star Cruises' casino. The Straits Times. Retrieved October 12, 2009, from Factiva.

Greater transparency and more disclosure in Sentosa IR bid. (2006, December 4). Channel NewsAsia. Retrieved October 12, 2009, from Factiva.

Lee, H. L. (2005, April 18). Proposal to develop Integrated Resorts. Retrieved October 12, 2009, from Ministry of Trade and Industry, http://app.mti.gov.sg/data/pages/606/doc/Ministerial%20Statement%20-%20PM%2018apr05.pdf.

Lim, W C. (2009 June 26). 60% of Sentosa IR will be ready when it opens. The Straits Times. Retrieved October 12, 2009, from Factiva.

Lim, W C. (2009, July 9). Marina Bay IR opening pushed back. The Straits Times. Retrieved October 12, 2009, from Factiva.

Malaysia/Thailand/Singapore: Genting Group aims to attract Thai tourists to its Resorts
World Sentosa project in Singapore. (2009, October 9).  Thai News Service. Retrieved October 12, 2009, from Factiva.

Paul, B. (2006, December 25). Newsmakers 2006-07: Singapores Casino kingpins. The Edge Singapore. Retrieved October 12, 2009, from Factiva.

Ramchandani, N. (2009, April 22). Resorts World expects strong hotels demand. Business Times Singapore. Retrieved October 12, 2009, from Factiva.

Sawatan, J. (2007, April 16). Construction begins for Genting's Resorts World at Sentosa. Bernama Daily Malaysian News. Retrieved October 12, 2009, from Factiva.

Sim, A. (2008, November 18). No stand-alone casinos to be allowed: Iswaran. Business Times Singapore. Retrieved October 12, 2009, from Factiva.

Tan, E. (2008, October 9). IRs to be buttressed against attacks. The Straits Times. Retrieved October 12, 2009, from Factiva.
The winner takes it all. (2006, December 11). The Edge Singapore. Retrieved October 12, 2009, from Factiva.

Tor, C. (2007, March 10). Keeping casinos in check; Probity reviews on Genting will continue. Today. Retrieved October 12, 2009, from Factiva.

Universal Parks & Resorts; Universal Studios Singapore Announces Launch of World's only 'Madagascar' Theme Park Attraction From DreamWorks Animation. (2009, October 6). Science Letter/ Retrieved October 12, 2009, from Factiva.

Wee, L. (2007, March 10). Genting may not have done enough over Stanley Ho deal. Business Times Singapore. Retrieved October 12, 2009, from Factiva.

When Genting comes to Sentosa. (2007, January 7). The Straits Times. Retrieved October 12, 2009, from Factiva.

Wong, T. (2009, August 21). Sentosa IR looking to hire 5,000 this weekend. The Straits Times. Retrieved October 12, 2009, from Factiva.

Yeo, M. (2009, July 15). ChildAid to hit the high notes at Resorts World. Business Times Singapore. Retrieved October 12, 2009, from Factiva.

The information in this article is valid as at 2009 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.

Subject
Recreation>>Places of Interest
Casinos--Singapore
Resorts--Singapore
Business, finance and industry>>Industry>>Leisure and entertainment



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