Genting promises “transformation” after Singapore penalises RWS for post-Covid performance
The Gambling Regulatory Authority (GRA) announced Resorts World Sentosa’s licence extension on 18 November. It based the sub-par grade on the assessment of an independent panel appointed by the minister for trade and industry.
Panelists looked at RWS’ ability to “develop, maintain and promote its integrated resort as a compelling tourist destination that meets prevailing market demand and industry standards”.
They found that RWS’ performance was “unsatisfactory” from 2021 through 2023, as the market continued to recover from Covid-19. The GRA said RWS still needs “rectification and substantial improvement”.
This is the first time the GRA has issued a licence for a term of less than three years, a representative told the Straits Times.
Facing “significant challenges”
Responding to the news, RWS operator Genting Singapore stated the obvious: tourism in Singapore faced “very significant challenges” during the years in question.
Singapore detected its first Covid case in January 2020. It managed the crisis with short-term shutdowns, or circuit breakers, along with travel restrictions and strict contact tracing. The city remained largely open and was held up as an example of emergency management.
But tourism flatlined for almost two years, starting in the second quarter of 2020. Statista figures show that tourism revenue began to revive in 2022, growing from S$1.42 billion (£789.3 million/€947.5 million/$1 billion) in Q1 to S$4.57 billion in Q2. Full year revenue from tourism rose to approximately S$14 billion, per the Singapore Tourism Bureau.
The city-state did not step down all Covid measures until February 2023, when it opened to all travellers without quarantine. For 2023, tourism receipts reached the S$25 billion range, with total visitor arrivals at 13.6 million.
On 7 November, Resorts World Sentosa posted third-quarter net profit of S$79.4 million, versus S$216.3 million during the same period in 2023. Revenue for the quarter was S$562 million, down 19% from last year.
Genting Singapore attributed the drop to a decline in VIP patronage, but Maybank analyst Yin Shao Yang said current and ongoing capital investments will pay off for the resort long term.
Resorts World Sentosa 2.0
In a statement following the GRA announcement, Genting company secretary Liew Lan Hing said, “RWS continues to accelerate its transformation to refresh and rejuvenate existing offerings to deepen its destination appeal and visitor experiences.”
In 2019, Resorts World Sentosa and Marina Bay Sands (MBS), its sole competitor in the market, agreed to invest a combined S$9 billion in new tourism and MICE facilities, in exchange for an extension of their duopoly through 2030.
This month, RWS began construction of a S$6.8 billion “waterfront lifestyle complex” that will add two luxury hotels and a Minion Land theme park at Universal Studios Singapore. Altogether, the expansion will grow the property by 50% and add more than 164,000 square metres of gross floor area.
“With its RWS2.0 expansion plans underway,” said Hing, “RWS is dedicated to maintaining its status as the premier lifestyle tourism destination.”