By Sam Holmes
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)–Las Vegas Sands Corp. (LVS) is seeking more land from the Singapore government to expand Marina Bay Sands as capacity at the integrated resort runs out, the gaming group’s chairman, Sheldon Adelson, said Thursday.
“We are already running out of MICE (meetings, incentives, conventions and exhibitions) space,” Adelson told reporters at a briefing at the full opening of the integrated resort.
“I’ve told the government that we need some more land to expand the MICE space because the demand that this property is going to create is rapidly bringing us to the point where we may even have to ration space.”
He said Marina Bay Sands’ MICE facilities are currently running at 87% capacity and that “within about 12-to-18 months” the complex will be “rationing space.”
Las Vegas Sands Chief Operating Officer Mike Leven at the briefing there is land available at various points around the resort’s current location that the group could potentially use to expand its business.
“Demand is going to be higher than supply shortly as the entire hospitality industry is running over 80% occupancy,” Leven said.
Turnover in Singapore’s nascent gaming market has exceeded expectations with some analysts valuing the sector at about US$6 billion in 2010 and expecting revenues to rival those of the Las Vegas strip by next year. Similarly, government figures released last week show the city-state earned S$18.8 billion in tourism receipts in 2010, beating the government’s S$17.5 billion to S$18.5 billion forecast.
Adelson said the US$5.5 billion Marina Bay Sands has received 11 million visitors since it opened in April last year and expects to break even within four years of operations.
Leven also said a report on the search for a new chief executive for the Singapore integrated resort is due Friday.
In late January, Marina Bay Sands Chief Executive Tom Arasi resigned for personal reasons. Arasi’s resignation came 18 months after he joined and less than one year after the integrated resort opened its doors to the public.
Earlier this month, Las Vegas Sands appointed George Tanasijevich as interim chief executive of Marina Bay Sands.
Adelson also said his company is “zeroing in on Spain” as a preferred market for its first potential European integrated resort. He also said the gaming group may look to set up an integrated resort in India.
