Singapore Gaming Industry: Good Times, Bad Times

Singapore, a tiny Asian country, is the real land of wonders. Picturesque Buddhist temples and high-tech business skyscrapers, beautiful nature, the international atmosphere and the diverse cultural heritage make it one of the most popular tourist destinations. Add the growing gambling industry it can easily explained why Singapore’s income is highly dependent on tourism and the money tourists annually leave in the country’s casinos and other gambling points.

People from all over the world began to discover Singapore as an ideal place for vacations several dozens of years ago. Tourists quickly started to appreciate this far-away Asian country for multiple reasons.

First of all, Singapore is a culturally diverse country, combining its colonial past with elements of Chinese, Indian, Malay and Arab ethnic influences. The famous cleanliness of Singapore’s streets and gorgeous natural parks with exotic species are also in trend. The low crime rate makes the life in this country very safe for both its citizens and tourists.

And the gaming industry here is also thriving. Singapore’s casinos have recently become serious rivals to the American gaming industry. While some negative tendencies towards decrease did take place in years 2009 and 2010 tourism still flourishes in this area as well as the gaming industry accompanying it. The highest number of tourists bound to Singapore comes from Asia. In 2010 8.7 million people visited this small country, mostly from Asian countries. In this year 5.4 million people from Asia have already visited Singapore – a clear decline compared to previous years. The number of visitors from Europe has also dropped to 780 k from 1.4 million recorded in 2011.

However, there is also good news! Whereas the number of people coming to Singapore from all over the world have decreased nowadays, the hotel statistics shows unchangeably high room revenues as well as average occupancy rates:

• In 2011 the room revenue was unprecedentedly high – 2002 million USD. It’s the highest number since 2001.
• The room occupancy rate hasn’t changed since the last year – it’s still 87%. It reached this level only in 2007 when it was 87% too.
• Average daily room rate is also boosting – now it’s 261 USD, and the revenue per available room is also the highest ever – 225 USD. Compared with the previous year Singapore’s hotel rooms have become more expensive – hotels rose prices at 10 USD at average.

But what’s about great Singapore’s attractions and its stable source of income – its casinos and slot machines? Statistic data is also grim in this case. Decrease in the country’s visitors has speeded up the decrease in the gaming industry’s revenue. In the second quarter of 2012 Singapore’s casinos earned 995 million USD. It’s more than in the 4^th quarter of 2010 but less than in following periods. Two of Singapore’s leading gaming institutions – Marina Bay Sands and Genting also suffered from recession. However, gaming tables and slot machines revenues showed slight increase – 1173 million USD and 4934 million USD respectively, compared with 1169 million USD and 4921 million USD in the previous quarter of 2012.

All in all Singapore is establishing itself as one of major players in international gaming industry. Though the expected growth in 2012 isn’t as spectacular as it was during last several years and there are even some signs of recession, we believe, that rise of Singapore will continue, partly due to its different business model (Singapore’s ‘Let Us Entertain You … and Then Gamble’ Strategy).

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Data source: Singapore Tourism Board

Featured image by jjcbaron