Inside Asian Gaming

16 Singapore this customer base,” suggests CLSA. “We understand that the first event is booked for 1st April 2010. The sales teams are generating ‘tremendous interest’ but the company has not disclosed booking numbers and other statistics. We should keep in mind that the current environment is not ideal for these kinds of bookings, with the booking lead time down to around 30 days versus the previous average of 9-10 months in Las Vegas and Macau. Those events from further afield will tend to book earlier due to logistical issues, such as long-haul flight bookings. Currently, 88% of LVS Macau bookings are held within 34 days.” Retail and restaurants: Will be popular with locals “Retail will be an important element to attract visitors, particularly from Singapore. We understand the response from retailers has been ‘good so far’ and the company will announce the anchor tenants soon. We would be expecting brands such as Louis Vuitton, Gucci, Tiffany, Cartier, Hermes, Prada, Tod’s, Burberry—i.e., the usual suspects. The company mentioned there are some very exciting elements being incorporated into the design, which will really differentiate the retail environment vs the existing offering in Singapore—this is intriguing but we weren’t able to squeeze any more info from management on this. We understand the mall will feature vast natural sunlight and have canals—with boats for rides but sadly no gondoliers (as at the Venetian Macau).” “There will be numerous restaurants and bars, including a 24-hour lobby restaurant (we believe these work well because they create atmosphere) and a large Chinese restaurant. There will also be six celebrity chef restaurants—names have not yet been announced.” Other entertainment options “There are two theatres with around 2,000 seats each. One will house a resident show. Currently the average running time is around 12 weeks. With 90% of tickets sold to locals, the duration is limited. MBS hopes that tourists will be able to ensure a longer running time, which we believe would substantially improve the economic-return profile. MBS hopes to leverage relationships with major shows globally such as Phantom of the Opera and the Blue Man group. The other theatre will be for limited duration events from one day to one week, etc. Examples would be rock concerts and fashion shows,” says CLSA. “The ArtScience Museum will be in the lotus-inspired building on the water. MBS will curate some events and bring some in from other institutions. There will be a waterfall to capture the water when raining and a lightshow to draw the crowds. An event plaza will be on the front waterside promenade with capacity for 10,000 people. The levels are adjustable depending on whether the event is on the water (stepped down) or in the sky, for example for fireworks, in which case the platform would be flat.” Connectivity “As mentioned earlier, the MRT will open in early 2012 and MBS is working with the authorities on this matter. In the meantime, customers can arrive via taxi, buses, drive their own car (2,600 car parks) [spaces] or get the MRT to Marina Bay and walk the last few hundred metres. In terms of pedestrian access, there will be a bridge connecting MBS to the Suntec complex.” Staffing and training “Staffing and training is a challenge for both MBS and RWS, especially as getting the service delivery right will be one of the key long-term success drivers of both resorts. On the casino side, dealers take around three months to train up from no experience. We understand that the dealer positions will be filled by Singaporeans and the managerial and supervisor positions will be filled by those with more experience in the casino industry, which may mean more positions are filled by expatriates,” state the analysts. “The IR would require as much [sic] as 10,000 people to operate, a large number for any city. Of the 10,000, around 4,000will be required for the casino, 4,000 for the hotel and 2,000 for others. Of this, 15% will be management and supervisory positions. MBS is working closely with relevant government bodies to ensure that the process is equitable for all interested parties (like the government, MBS and local workforce). The recent increase in unemployment will alleviate some of the issues and prevent a bidding war with RWS, which will also need around 10,000-11,000 employees. We understand that the dealer wage would be up to S$2,000 per month, or maybe less. “In terms of people, we understand that the average age is slightly older at 32 vs 26 in other markets. We understand that ex- Singapore Airlines staff is a very rich source of talented employees. The applicant mix tends to be more skewed to males versus females, which is the opposite to other casinos.” CLSA ends its report on Marina Bay Sands in an upbeat mood. “Marina Bay Sands is set to become a premier entertainment destination with its vibrant diversity of attractions and facilities, according to the company’s website. The vision is to build an integrated development that is timeless, a landmark that possesses a distinct identity which will distinguish Singapore from other cities.” The MRT will be a big plus when it opens in 2012