Inside Asian Gaming

Building "buzz factor" in Singapore Following are excerptsfrom a Ministerial Statement by Prime Minister Lee Hsien on the development of Integrated Resorts (IRs). Changing Circumstances Singapore's share of the tourism mar­ ket in Asia is declining (from 8 percent in the Asia Pacific region in 1998 to 6 percent in 2 002). Tourists are spending less time in Singapore. We want Singapore to have the X-fac­ tor - that buzz that you get in London, Paris or New York . Not a Casino, but an IR The !Rs will have all kinds of ameni­ ties - hotels,restaurants,shopping, con­ vention space, even theatres, museums and theme parks. But within this large development, there is one small but essential part which offers gaming and which helps make the entire project financially vi­ able. The investors will put in the money, and take the commercial risk. These were major projects, involving about $5 billion (US$3 billion) of in­ vestment for the Bayfront and Sentosa sites together. The Bayfront is suitable for a large business and convention facility, target- ing MlCE visitors. Sentosa is suitable for a family-friend­ ly resort, attracting families and tourists who are coming for a holiday. Gaming will occupy less than 5 per­ cent of the total floor area allowed. Altogether ... the two IRs will create about 3 5,000 jobs. The Downside We must assume that the IRs will in­ crease the amount of gambling in Sin­ gapore. Every year, Singaporeans spend $6 billion (US$3.6 billion) on legal gam­ bling in Singapore, and another $1.5 billion (US$0.9 billion) on cruises and offshore casinos. We seriously considered banning Sin­ gaporeans altogether f r om gambling in the !Rs, but decided against it. This is because there is no reason to exclude locals who can afford to gamble and would otherwise just go elsewhere. (Instead) first, we will restrict the admission of locals. We studied many alternative ways to do this, and finally decided to use price, and charge a high entrance fee. This will apply only to Country report Singapore Singaporeans and Permanent Resi­ dents. Second, we will implement a system of exclusions. Those in financial dis­ tress, or receiving social assistance, will not be allowed entry. Third, the casinos will not be allowed to extend credit to locals, so as to make it harder for them to lose more than they can afford. Fourth, we will make sure that some social good comes out of the gambling at the lRs. We will ... channel revenue collected from the entrance fee ... for charitable purposes. Fifth, we will set up a national frame­ work to address problem gambling. We will not allow casinos to sport garish neon displays on the fai;:ades and have jackpot machines everywhere f r om the lobby to the toilets. The gaming area will be separate, so that visitors have to make a conscious effo1t to go there, and not be tempted to yield in a moment of weakness. Values Singaporeans make more than 4 mil­ lion overseas trips by air and sea a year. What is not available in Singapore is all around us. With or without an IR, we must work harder to keep our values in­ tact, but we cannot do so by cocooning ourselves. Inside Asian Gaming September 2005 1 7