Gaming consultant warns that Singapore IRs may not be profit
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Gaming consultant warns that Singapore IRs may not be profitable after all
March 17, 2010 by admin
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Written by Our Correspondent
In a sign that the establishment is starting to have doubts on the profitability of Singapore’s two integrated resorts (IRs), the Straits Times published an unusual article today containing an interview with gaming and hospitality consultant Mr Ronald Tan who sounded the alarm bells of the long-term prospects of the IRs.
Mr Tan opined that both Genting or Sands are unlikely to exceed their forecasts of US$1 billion each in revenue from the casinos within a year due to the high overhead costs of over $13 billion dollars for both.
Construction of the two IRs began in 2006 amid a construction boom which saw rising prices of sand and manpower exacerbated by the ban of the sale of sale to Singapore by neighboring countries such as Malaysia and Indonesia.
The grand plan to allow casinos in Singapore was announced and implemented swiftly by Prime Minister Lee Hsien Loong with no consultation with Singaporeans, a significant proportion remains opposed to their presence here.
Some are now questioning the wisdom of having two casinos built together at the same time in a small place like Singapore.
“Instead of allowing both casinos to open in a more relaxed way during the first few years, the IRs are now under tremendous pressure…..the road ahead is ‘no bed of roses’,” Mr Tan said.
His pessismistic view was echoed a few weeks ago by Las Vegas Sands Chief Operating Officer Michael Leven who told Reuters that LVS will need to generate at least US$400 million in EBITDA from Marina Bay Sands in a bid to meet debt covenants.
“We’re accumulating cash … the only risk is if Singapore doesn’t do well. We have to do $400 million in EBITDAR to clear covenants. If we don’t do that, we’ve made a bad investment in Singapore,” he added.
(EBITDAR definition: Earnings Before Interest, Taxes, Depreciation, Amortization and Rent. An approximate measure of a company’s operating cash flow based on data from the company’s income statement. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, amortization, and rent. Similar to, but less common than, Earnings Before Interest, Taxes, Depreciation, and Amortization.)
LVS will operate the second casino in Singapore at Marina Bay whose opening has been delayed repeatedly due to financial problems faced by the parent company in the United State.
Ronnie Chan, chairman of Hang Lung Properties Ltd., Hong Kong’s fifth-biggest developer by market value, said last September in a Bloomberg Forum in Hong Kong that the two casino-resorts in Singapore will fail because they won’t be able to attract high-rollers:
“The big rollers are what make money in casinos, they will never come to Singapore, it’s a family entertainment” location. You think big-rollers will go to Singapore where they have teeth and fangs coming out sideways? There are too many rules. I was in Sentosa island, I really think that it’s going to be a flop…..The whole integrated entertainment industry, I’m worried for them. The good thing about Singapore is that if you flop, you’re given a second chance,” he said.
Mr Tan warned that not all casinos are profitable quoting the example of Melbourne’s Crown Casino which suffered substantial losses for two years straight after it opened in 1997.
He also harbored doubts about the profitability of the other non-casino attractions such as the Universal Theme Park:
“Many Singapore attractions, from Tang Dynasty Village to Haw Par Villa, flopped because of the heat and humidity. The majority of Universal’s attractions are outdoors, which means people have to wait in line under the hot sun. If even Hong Kong, a temperate country, cannot succeed with Disneyland with its huge China hinterland,” he was quoted as saying in the Straits Times.
Mr Tan should not worry too much and remember what Ronnie Chan had said earlier:
“The good thing about Singapore is that if you flop, you are given a second chance.”
So long the venture is spear-headed by the PAP, it can afford to flop many times and still given a chance. -
Hw can say that . . . my lau hero know will make money then open la. So sure will make money.
you all don anyhow say ah.....
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u still got more to learn.... -
Originally posted by angel7030: u still got more to learn....
The intelligence of a Taiwanese 'hum' begin and end at its ‘Labia Majora’ and ‘Labia Minora’ - can anything of any substance flow from its hopeless brain that is no bigger then the size of its ‘clitoris’ ? -
my brother got a disciple...
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the key word is 'may not'.
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Originally posted by angel7030:
my brother got a disciple...
Has anyone doubted that you are not a female and possess a 'little brother' ?Obviously the Taiwanese 'hum' learnt something from ‘Singapore's famous Kumar’ - to disguised your sexuality.
The intelligence of a Taiwanese 'hum' begin and end at its ‘Labia Majora’ and ‘Labia Minora’ - which help in its indulgence to enjoy in rapturous idiocy - can anything of any substance flow from its hopeless brain that is no bigger then the size of its ‘clitoris’ ?
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if people want to doubt, what can i do, ask them to come my pub with on the house beer, they refuse, so how??? send jaguar to fetch them with full honor guards and red carpet ar???
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Originally posted by angel7030:
if people want to doubt, what can i do, ask them to come my pub with on the house beer, they refuse, so how??? send jaguar to fetch them with full honor guards and red carpet ar???
With your CBM flapping away - your intelligence as a Taiwanese 'hum' begins and end at the ‘Labia Majora’ and ‘Labia Minora’ - which help in your indulgence to enjoy in rapturous idiocy - can anything of any substance flow from its hopeless brain that is no bigger then the size of its ‘clitoris’ ? -
he use the term "may not"
means 50 percent might not profit only..
and he might be paid to quote such comments also
and just imagine if today the Two IR paid him
one million.
This joker will quote again "Two IR sure make money one:
This are all just Sec learned marketing tricks
hahahah
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Last month, i just had a abalone CNY lunch with Ministers at ah Yi bao yi restaurant, i did ask them about the IRs long term prospects, they said, at the moment, it is still a very infant stage, the govt and the owners, both join shareholders, are looking on a long term basis, whether IRs can make it or not, will take about 3 years to relook at it. For them, the first year is sure to attract crowd, but the 2nd and 3rd years will be more on whether if these crowd will return or recommend more to come. Therefore, the first year is a critical year, it is just like a showcase or showroom year. And as it progress on, the IRs will adjust itself to curb it inefficiencies in area that is weak, so you can expect IRs to ask guests and visitors for more feedback so as to improve themselves.
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Originally posted by angel7030:
Last month, i just had a abalone CNY lunch with Ministers at ah Yi bao yi restaurant, i did ask them about the IRs long term prospects, they said, at the moment, it is still a very infant stage, the govt and the owners, both join shareholders, are looking on a long term basis, whether IRs can make it or not, will take about 3 years to relook at it. For them, the first year is sure to attract crowd, but the 2nd and 3rd years will be more on whether if these crowd will return or recommend more to come. Therefore, the first year is a critical year, it is just like a showcase or showroom year. And as it progress on, the IRs will adjust itself to curb it inefficiencies in area that is weak, so you can expect IRs to ask guests and visitors for more feedback so as to improve themselves.
Eating ablaone with a minister ?Talking cock after all night looking for one, and sing song to inflate your own 'hum'.
The intelligence of a Taiwanese 'hum' begin and end at its ‘Labia Majora’ and ‘Labia Minora’ - which help in its indulgence to enjoy in rapturous idiocy - can anything of any substance flow from its hopeless brain that is no bigger then the size of its ‘clitoris’ ?
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Originally posted by Atobe:
Eating ablaone with a minister ?Talking cock after all night looking for one, and sing song to inflate your own 'hum'.
The intelligence of a Taiwanese 'hum' begin and end at its ‘Labia Majora’ and ‘Labia Minora’ - which help in its indulgence to enjoy in rapturous idiocy - can anything of any substance flow from its hopeless brain that is no bigger then the size of its ‘clitoris’ ?
Not a minister only hor...with MINISTERS with an S ya.
We business peoples contribute alot to those PAP care and charity funds ok, actually most of us dun wanted to contribute, but what to do, must rub shoulder mah, you think that abalone lunch they give one ar, if not very hard to deal with authority in some business ya. In fact, the lunch is also our money contributed, what they are trying to do is acting only, like u old people like to say what wayang wayang...at the end of the lunch...a minister will said, thank thank you all for your contribution, we look forward for a better year ahead and more contribution from you people...lai lai lai...Cheers!!! thank you thank you...bloody hell, one handshake, $10k gone
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Originally posted by angel7030:
Not a minister only hor...with MINISTERS with an S ya.
We business peoples contribute alot to those PAP care and charity funds ok, actually most of us dun wanted to contribute, but what to do, must rub shoulder mah, you think that abalone lunch they give one ar, if not very hard to deal with authority in some business ya. In fact, the lunch is also our money contributed, what they are trying to do is acting only, like u old people like to say what wayang wayang...at the end of the lunch...a minister will said, thank thank you all for your contribution, we look forward for a better year ahead and more contribution from you people...lai lai lai...Cheers!!! thank you thank you...bloody hell, one handshake, $10k gone
Does anyone in this Speaker's Corner need to doubt your complete idiocy ?Is it any surprise that the Taiwanese 'hum' will flap its ‘Labia Majora’ and ‘Labia Minora’ in rapturous idiocy - just to attract attention to itself as an 'Attention Seeking Whore' ?
Can anything of any substance flow from its hopeless brain that is no bigger then the size of its ‘clitoris’ ?
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As i said again, if u want to hve doubt, what can i do??? Ministers are good in dining and wineing, and they specially take only good food like abalone, sharkfins, buddha jump over the wall,...they dun take rice or stupid laksa, or mee siam or char kuay teow, because they got personnal dietercian to guide them, that is why most look fit with no pot belly stomach like most Singapore men have. Did u notice that??? so, they go joo chiat hv lunch, talk about PAP and ask for donation from the business community, act on some Q and A, then at night, go Toa payoh or other towns to eat again, then tomorrow the same thing...they dun even need $3 to buy chai png or mee siam mai hum. That is why PM said the wrong thing, because he dun eat cheapsake mee siam food...and PM looks fit ya
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no offense, Angel, but based on your statement "Ministers are good in dining and wineing, and they specially take only good food like abalone, sharkfins, buddha jump over the wall".
U may have given enough for the CPIB to look you up hor...
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Originally posted by angel7030:
As i said again, if u want to hve doubt, what can i do??? Ministers are good in dining and wineing, and they specially take only good food like abalone, sharkfins, buddha jump over the wall,...they dun take rice or stupid laksa, or mee siam or char kuay teow, because they got personnal dietercian to guide them, that is why most look fit with no pot belly stomach like most Singapore men have. Did u notice that??? so, they go joo chiat hv lunch, talk about PAP and ask for donation from the business community, act on some Q and A, then at night, go Toa payoh or other towns to eat again, then tomorrow the same thing...they dun even need $3 to buy chai png or mee siam mai hum. That is why PM said the wrong thing, because he dun eat cheapsake mee siam food...and PM looks fit ya
The irrelevance of the Taiwanese 'hum' is at its best when it exercises its CBM that is transplanted from the parts of the ‘Labia Majora’ and ‘Labia Minora’ - which it will flap daily in rapturous idiocy.With a brain that is no bigger then the size of a ‘clitoris’ - can anything of relevance be expected from the Taiwanese 'hum' ?
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So what? lai lor. Me singaporeans cannot give comment on it, it is true they are eating abalone and people below are eating apple only ok.
A good govt will listen to the plight of the citizens, not get CPIB or ISD or whatever big DD or CC cup or cops to come and get you. That is a total irresponsible govt, or so called swept it into the carpet govt.
They should take it as a feedback, look into it, and improve on it, next time, ask them to eat nasi lemak...people can Fxxk LKY until LHL also no problem, i said dining and wineing cannot meh??? Joke of the day.
Anyway Fatboy, they are deaf to our criticism, u heard of deaf frog or not???
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Originally posted by iceFatboy:
no offense, Angel, but based on your statement "Ministers are good in dining and wineing, and they specially take only good food like abalone, sharkfins, buddha jump over the wall".
U may have given enough for the CPIB to look you up hor...
cos someone thought the gahmen cannot trace THeir ip address - so just everyday any how write and post shits - it's just take some time only for them to visit you personallyjust ignore - like that it cannot continue it's shits
if cannot trace i gonna toto first price
donlt think i fucking hid behind the computer nobody can track/find me - tell you FY
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Originally posted by angel7030:
So what? lai lor. Me singaporeans cannot give comment on it, it is true they are eating abalone and people below are eating apple only ok.
A good govt will listen to the plight of the citizens, not get CPIB or ISD or whatever big DD or CC cup or cops to come and get you. That is a total irresponsible govt, or so called swept it into the carpet govt.
They should take it as a feedback, look into it, and improve on it, next time, ask them to eat nasi lemak...people can Fxxk LKY until LHL also no problem, i said dining and wineing cannot meh??? Joke of the day.
Anyway Fatboy, they are deaf to our criticism, u heard of deaf frog or not???
The irrelevance of the Taiwanese 'hum' is at its best when it exercises its CBM that is transplanted from the parts of the ‘Labia Majora’ and ‘Labia Minora’ - which it will flap daily in rapturous idiocy.
With a brain that is no bigger then the size of a ‘clitoris’ - can anything of relevance be expected from the Taiwanese 'hum' ?
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i hope the 2 casinos will fail. i dont mind the rest of the hotels and resort stuff, but casino can go to hell for all i care. since they dont like me, want me to pay SGD100 just to go in, and not even a rock star concert, i oso dont like them.
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Casino wiill stay, Spore population size is bigger than LV and Macau. Both are top Casion locations. Our population will contribute to the success of these casinos because we will not be able to stop our ppl from losing the billions to the casino. What we can do is to ensure our loves one are banned from entering these places but registering them in the black list. Maybe we can start a 'black list moment' voluntering ourself to be included in the black list.
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I think there is a lot of flaw in Ronald Tan anlayst. Think he make a lot of clear cut mistake and totally wrong analyst of why things failed.
The arguement of no high rollers ? Clearly someone analyst from hong kong - forgotten the rich in Malaysia & Indonesia and other south east asia.
Melbourne’s Crown Casino which suffered substantial losses for two years straight after it opened in 1997. Well it is still around - thus it survive. Asians love to gamble - look at the 4d and toto - you cannot compare that to aust.
Tang Dynasty Village to Haw Par Villa ? Haw Par Villa - who want to go see hell ? Tang Dynasty - so small and limited - you compare to china - Song city or Ocean park - they have shops , resturants with people in costume.
Heat and Humidy ? Hong kong Disney is sucks because it is too small. Why not talk about Ocean park - it is also open, people wait for rides. It is the concept and attraction. Disneyland with its huge China hinterland - hello china people do not love disney characters, they don't grow up with them ! - they see Mao cartoon last time.
In Singapore - where parents and kids are starve of places to go - theme park will be full alway .
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Originally posted by Longinchjohn:
Hw can say that . . . my lau hero know will make money then open la. So sure will make money.
you all don anyhow say ah.....
If my memory serves me correctly your former nickname here was 'Brandon Donowat Similanjiao'. -
Originally posted by Checker.:
cos someone thought the gahmen cannot trace THeir ip address - so just everyday any how write and post shits - it's just take some time only for them to visit you personallyjust ignore - like that it cannot continue it's shits
if cannot trace i gonna toto first price
donlt think i fucking hid behind the computer nobody can track/find me - tell you FY
govt paid ISD CID CPID or CPIB officers and our Home affair Minister so much money just to trace me???? U must be joking lor...remember, they dun understand or even heard about critics....u go as opposition MP Low, he will tell u what it mean.
