Singapore attracted a total of 7.8 million visitors to the city-state in the first five months of the year, representing a 1.5% growth over the previous year.
The opening of the first Japanese IRs may still be five or more years into the future, but Singapore’s recent decision to allow a US$6.6 billion expansion of its two IRs is related to an effort to ensure that Japanese competition doesn’t draw too much business away from the Southeast Asia city-state.
Genting Singapore's financial results in the January-March 2019 period topped expectations, helped by a higher luck factor, but analysts say they are cautious about near-term prospects.
Singapore has allowed the first major expansion of its integrated resort industry since its two IRs began operating, involving S$9 billion (about US$6.7 billion) new investment in non-gaming amenities, but casino entry fees and taxes will also rise.
Genting Singapore posted a 12% gain in the October-December 2018 period in terms of net profit, saying that over the year it had seen an encouraging performance in both gaming and non-gaming business, boosted by its marketing efforts on the premium mass segment.
Genting Singapore is facing increasing competition in the mass market from the Philippines and Cambodia, though management sees room for growth in VIP, according to Nomura.
Singapore welcomed 4.6 million visitors in the first quarter of 2018, a 7.3 percent boost over the prior year. However, despite a rise in visitors, tourist spending fell half a percent to S$6.7 billion (US$4.9 billion) due to lower spending in shopping, accommodation, and F&B.