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SINGAPORE : There will be no compromise to the government's concept of an Integrated Resort (IR) - that allows only a small proportion for gambling.
Senior Minister of State for Trade and Industry, S Iswaran, made this point while addressing a question in Parliament.
For punters, it is clear that the main draw to Singapore's two Integrated Resorts - Resorts World Sentosa (RWS) and Marina Bay Sands (MBS) - are the casinos, which were launched during Phase One openings of the resorts.
Mr Iswaran said such phased openings are common for large scale projects.
"From an operational perspective, phased openings are necessary to allow the IRs to work through operational issues and to allow employees to familiarise themselves with their new roles and gain confidence for the ramp-up in activities," he said.
"It allows developers to work out operational issues and iron out staff training. We must recognise that these are multi-billion and multi-decade projects," he added.
But the casino licenses will be granted only when authorities establish that at least 50 per cent of the Gross Floor Area (GFA) is completed and at least 50 per cent of the Development Investment (DI) has been expended.
Mr Iswaran said: "This was to ensure that the casino would be allowed to operate only when a significant amount of non-gaming facilities were opened and the integrity of the Integrated Resort concept upheld."
As committed, when the IRs are fully open, gaming areas will take up less than 3 per cent of the Gross Floor Area for Marina Bay Sands and less than 5 per cent for Resorts World Sentosa.
Mr Iswaran pointed out that both IRs have, in fact, opened significant non-gaming facilities.
He said: "RWS soft opened with Universal Studios Singapore (USS), its theatre, part of the Festive Walk, and four hotels. The next phase of its development will include the addition of new attractions in USS, the premier of a locally created circus theatre show, a Marine Life and Water Theme Park, and a Maritime Experiential Museum.
"MBS' preview opening included a significant amount of non-gaming areas such as 963 hotel rooms, retail outlets, restaurants, bars and MICE facilities. MBS expects to open its remaining facilities such as the Skypark, Theatres and Museum by end-2010."
He also addressed concerns from opposition MP Low Thia Khiang that many Singaporeans were hitting the casinos. He felt there is a novelty factor at play, but pledged that agencies are monitoring the trends closely.
Hougang MP Low Thia Khiang said: "There are reports that most visitors to the casinos are actually Singaporeans, is that a concern of the government?"
Mr Iswaran replied: "Obviously we want to ensure that Singaporeans who choose to go to the casinos give due thought to that before they go in and not do it on an impulse - which is why we have a whole slew of measures that have been put in place.
"It would be fair to say that there is a novelty factor in place, and to say that whatever we see at play in terms of numbers, in terms of performance in the first few weeks and months is an accurate predictor of what will be happening 12 months, 24 months down the road, I think may be stretching the argument a little bit."
"I think what I can assure the member is that the agencies are monitoring the situation closely and I think once we have a better sense of the patterns and trends, then I think we will better know how the measures we have put in place are working."
On hiccups faced by conference organisers at Marina Bay Sands recently, Mr Iswaran said Singapore's reputation as a top city for MICE events is not determined by the outcome of a single event.
Singapore hosts 6,000 business events annually, accounting for a quarter of such meetings held in Asia.
"You see the integrated resorts having teething problems regarding its hotel rooms, its conference facilities, its roller coaster but funnily enough not their casinos," said Nominated MP Calvin Cheng.
The conference by the Inter Pacific Bar Association was besieged with problems, ranging from a power failure to lack of air conditioning.
Mr Iswaran replied: "It is not uncommon for projects of such a scale to encounter operational glitches when they commence operations. Nevertheless, it is regrettable that delegates at a recent conference found their experience at MBS to be unsatisfactory.
"I understand that MBS has taken the feedback of its clients into consideration and is already taking steps to address these issues. To put it in perspective, Singapore plays host to 6,000 business events annually, and accounted for more than 25 per cent of the meetings held in Asia in 2008.
"Notable MICE events we have hosted in the past include the IMF-World Bank meetings in 2006 and the APEC Summit in 2009, as well as business events such as the World Dental Federation Congress of 2009."
It may still be early days to say just how much the IRs will contribute to Singapore's tourism dollar, but together, both IRs have contributed more than S$12 billion worth of investments and are creating about 20,000 jobs - of which about 80 per cent have already been realised, with a large proportion going to locals.
- CNA/al
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