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The
Business Times, 20 Mar 04
How to position Singapore's casino
By Ronald Tan The
A casino is good for business, but care needs to be taken over location,
size, structure and operational details
THE government's announcement last week that it may consider setting
up a casino is great news for Singapore's tourism and hospitality
industry. Once this attraction is in place, Singapore will join the
ranks of cities like New York (Atlantic City), London, Hong Kong (Macau),
Sydney and Melbourne. Many top-end visitors coming to Singapore on
business have, thus far, missed out on what a casino can offer. We
have some good attractions - the Kranji racecourse, the Esplanade,
great hotels, good shopping, golf courses and restaurants. A casino
complex will complete the loop.
If we get it right, a casino in Singapore can attain world-class status
and will be a must-visit for those who enjoy a flutter, or even serious
gambling. Like most casinos worldwide, most foreign visitors should
be allowed in. But in order to prevent social problems associated
with problem-gambling at home, Singaporean patrons should be admitted
on the basis of membership, after undergoing a character and/or means
test.
This is the approach adopted by casino clubs in London, which are
required to adhere to the UK Gaming Act. This Act also specifies stringent
guidelines on credit facilities (to prevent over-gambling) as well
as standards of training and conduct for staff running casinos, especially
croupiers.
Over-gambling, in particular, can lead to severe social problems.
It is also associated with loan sharks, drug-related and other underground
activities. But with appropriate restrictions, these undesirable aspects
can be minimised.
Tap private sector
While a government-linked company like Singapore Pools could invest
in and operate a casino, private-sector participation should be welcomed.
We could also invite one of the top casino operators in the region
to provide technical assistance. A casino must be capable of providing
not only gambling facilities, but also entertainment and thrills.
Its benefits to society will be all the greater if it also has positive
spillover effects. For instance, there could be a gaming tax, part
of the revenues from which can go towards entertainment, both within
the complex as well as outside - like towards the Esplanade to stage
world-class shows. Ordinary Singaporeans will thus be able enjoy such
shows at more reasonable prices. A casino can therefore be of benefit
to them too, even if they don't patronise it themselves.
What about location? This is an important issue. Many patrons will
not like to island-hop to reach a casino. In the mid-1970s, when the
Macau tycoon Stanley Ho opened a floating casino in Manila Bay, it
was unpopular with security-conscious high-end patrons. Within two
years, the casino was relocated back to shore. Rather than make patrons
island-hop, it would be prudent to locate Singapore's casino on Sentosa
Island - possibly at the Cove itself, where patrons can arrive by
car. If casinos elsewhere are a guide, many will demand easy access,
via limousine.
Another question to consider is whether a casino should be aimed at
attracting families with children. Las Vegas learned the hard way
with their introduction of children's attractions in the early 90s.
Many parents found that it was unhealthy for their kids to mingle
around poker machines and look at posters advertising adult entertainment.
Therefore, of late, many of these top casinos like MGM, Treasure Island
and Luxor have changed course and dismantled their children's parks
and rides.
However, Las Vegas is much more than just casinos and gambling. It
is also the top convention city in the world that hosts over 200 top
conventions annually. And it has an inventory of 130,000 hotel rooms,
with occupancy rates of up to 90 per cent.
Go for big spenders
Singapore's casino should target top-end visitors, rather than families
- more like Monte Carlo than like Las Vegas. Wealthy tycoons could
fly into Singapore in their private jets, or in cruisers and enjoy
a range of attractions. A casino should also be welcomed by Singapore's
private bankers, who will be able to tap into a bigger pool of high
net-worth clients, thus boosting Singapore's importance as a global
financial centre.
Developing a casino project in Singapore will require careful forward
planning, which will be a challenge. When the casino at Genting opened
its doors in 1971, it had 50 gaming tables and 200 hotel rooms. Today,
it has over 500 tables and close to 8,000 rooms. But both Starcity
and Crown in Australia opened with over 300 tables each and today,
with the intense competition, they face overcapacity problems.
We must also be mindful that casinos are sprouting all over the region
with countries like Japan, Taiwan and Thailand planning to open them.
Thus while it is heartening to see our government responding as well,
much research will need to be done on location, size, structure, stakes
and other operational details.
Singapore is fortunate to have businessmen who are familiar with the
leisure industry and who have executed many high-class projects. Their
help could also be sought in making Singapore's casino a reality.
The author is a businessman and consultant specialising in the
leisure industry
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