Government expects 25% rise in visitor numbers for 2010 when the two IRs open

 

By ARTHUR SIM

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The princess and the minister: Mr Lim making an entrance with 'Princess Fiona' of Shrek fame. He was guest-of-honour at the groundbreaking ceremony for Genting International's Resorts World at Sentosa

The government had said earlier this year that Star Cruises' associates, including Macau tycoon Stanley Ho, would be subject to probity checks before a casino licence was awarded.

Genting International said subsequently it would buy Star Cruises' 25 per cent stake in RWS. And Mr Lim said yesterday that RWS 'understands our need to maintain these probity checks and there is no issue now'.

Related article: Click here to read the full text of Mr Lim Hng Kiang's speech

Speaking at the ground-breaking ceremony for RWS, he said the government expects a 25 per cent increase in visitor numbers for 2010 when the two integrated resorts (IRs) open. He also revealed that RWS intends to award $508 million of contracts for infrastructure works and development services in the next few weeks. This includes the reclamation of 8 ha of land.

The Malaysian-based Genting group still has plans to build a casino in Macau with a sub-licence from Stanley Ho, but this will not be an issue for the Singapore Government. Mr Lim said: 'We are only looking at our jurisdiction - who the partners and shareholders are in Resorts World at Sentosa.'

Also speaking at the ground-breaking ceremony was Genting International chairman Lim Kok Thay, who said RWS has already awarded $20 million of contracts to Singapore businesses. On the upcoming $508 million of contracts, he said: 'In the next phase we anticipate that most of (the contracts) will go to Singapore companies - not necessarily as the main contract but in terms of the sub-contractors.' Total building contracts are now estimated at $3 billion.

Apart from having a Universal Studios theme park that will be bigger than the original in California, Mr Lim said four additional attractions by renowned designer Jeremy Railton will be added.

The Singapore Tourism Board (STB) now expects an additional two-to-three million visitors by 2010, representing a 25 per cent increase from the 11 million visitors projected for 2009.

STB also expects average length of stay to increase from 3.4 days in 2006 to 3.6 days in 2010. This means that the number of visitors per day will increase 55 per cent - from about 90,000 in 2006 to nearly 140,000 in 2010, the minister said.

Many will stay at RWS's 1,800 hotel rooms, but Mr Lim said there are 13 hotel sites available for the first half of the government's 2007 land sales programme. 'If all these sites are sold, we are looking at potentially adding another 5,000 hotel rooms,' he said. STB is also exploring the use of unoccupied state buildings as hotel rooms, he added.

Development on the Southern Islands appears to have been put on the back burner, though. STB had said earlier that a Request for Concepts could take place in the first quarter of this year but Mr Lim said yesterday: 'Until we can settle on a project with a wow factor, we will not go forward. We are in no rush.'

On the possibility of a third casino on the Southern Islands, he said: 'Casinos are not on the horizon for the time being.' Elaborating, he said the government does not 'fly blindly'. 'Internally, we would have settled on 70-80 per cent on the ideas before we go out.'

STB will, nevertheless, have its hands full. Mr Lim said it is now working with the Civil Aviation Authority of Singapore and major airlines to explore ways to increase air capacity to cater to the expected increase in visitors and expand the current 180 destinations.

STB will also launch a three-year campaign to promote the hospitality sector. The two IRs are expected to create between 50,000-60,000 new jobs throughout the economy, Mr Lim said.