Inside Asian Gaming

October 2014 inside asian gaming 15 In Focus lead to high gaming revenues, it is simply mathematically difficult for non-gaming to contribute more than 50% of the total revenue, and ratios in the 10% to 30% range are more likely,” says industry consultant Dean Macomber, president of Macomber International. “Few other activities can generate the amount of revenue gaming is able to generate within a practical amount of space.” ONE MODEL, TWO RESORTS The Las Vegas model has produced two very different-style resorts in Singapore. Marina Bay Sands, developed by Las Vegas Sands on the fringe of the city’s downtown, adds an architectural icon to the skyline with three 55-story hotel towers linked by a rooftop SkyPark, one of the city’s top five attractions for visitors, according to a 2013 Singapore Tourism Board survey. The property has created the template for a modern urban megaresort with vast shopping and dining choices, huge convention facilities, two nightclubs, two theaters and a museum, all of them revenue-producing. Located on Sentosa, Singapore’s designated leisure island, Resorts World Sentosa has more features in common with family vacation destinations, highlighted by the only Universal Studios theme park in Southeast Asia—also a Top 5 attraction in STB’s survey—plus a water park and one of the world’s largest aquariums. The Genting Group resort, operated by SGX-listed Genting Singapore, has six boutique styles of accommodation, ranging from Festive Hotel’s family-friendly loft beds to Beach Villas’ luxurious treetop lofts hidden in lush greenery, and features an ESPA spa, MICE facilities, dining and luxury retail. With their divergent locations and diverse offerings, the two resorts deliver different financial results. Last year, Marina Bay Sands had US$3.16 billion in revenue, $2.36 billion from gaming and $804.7 million from non-gaming, or 25% of total revenue, with EBITDA of $1.38 billion, which works out to a margin of 46.6%. Resorts World Sentosa, which reports in Singapore dollars (converted to US dollars at current rates throughout unless otherwise indicated), had total revenue of $2.25 billion, gaming revenue of $1.73 billion and non-gaming revenue of $523.3 million, 23.2% of its total revenue, with EBITDA of $929.6 million