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The
Business Times, 22 May 04
$10 billion plan to make Sentosa a 'must
visit' place
Part of the plan is a $25m nightly water-based show on the stretch
of sea between the island and HarbourFront
by Daniel Buenas
(SINGAPORE) Sentosa aims to throw off the 'white elephant' tag once
and for all through a massive $10 billion redevelopment plan that
will make the island and its surrounds 'irresistible' to tourists
and locals.
'We're looking at creating an integrated destination within Singapore
that would have high recognition, high visibility and would be extremely
difficult - if not impossible - for any tourist not to visit during
their stay here,' says Darrell Metzger, chief executive of Sentosa
Leisure Group. 'We also want it to become a regular destination for
residents.'
Of the $10 billion the plan calls for, $2 billion will come from Temasek-linked
Mapletree Investments, which is developing HarbourFront - a 24-hectare
site in Maritime Square opposite Sentosa, slated for a mega shopping
and entertainment complex.
Another $6 billion will be spent on Sentosa island itself, and the
remaining $1 billion to $2 billion will be used to develop the Southern
Islands.
'It's a combination of private and Sentosa Leisure Group's money,
and the ratio of that is about 75 per cent private investment and
25 per cent our investment, primarily in infrastructure, which is
our obligation,' says Mr Metzger.
As part of its grand plan, Sentosa is collaborating with HarbourFront
to build a $25 million nightly water-based show on the stretch of
sea between the island and HarbourFront. Mr Metzger believes this
will be popular enough to draw 10,000 to 15,000 people to the area
every night.
'The water show will include light, sound, lasers, fire - for $25
million, we'd better get it all,' he says. 'It will be done nightly,
maybe twice a night - and it will be free. 'If we put in a new show,
I'm sure it will be a nightly destination and become a very active
area. We need to bring life to this place at night.' The show will
be ready about the time HarbourFront opens in 2006 - and it will be
part of the plan to turn the Sentosa area into an integrated destination.
In recent years, Sentosa has undergone a remarkable transformation.
No longer seen as just a tourist spot, the island is now visited by
many younger Singaporeans and hosts some of Singapore's hippest parties.
The number of visitors used to be equally split between foreigners
and residents, though last year saw more locals than tourists because
of Sars. Mr Metzger hopes that locals will eventually comprise about
60 per cent of Sentosa's visitors.
Overall, the number of visitors rose almost 10 per cent from 3.8 million
in 2001-02 to 4.2 million last financial year. The aim is to boost
this to about 8 million visitors in eight years' time. 'Ultimately,
we'll get to the point where the attendance at the island is not important,'
Mr Metzger says. 'To us, attendance is a gauge of how we're doing
on the marketing side - but the real gauge obviously is revenue.'
Revenue has surged from $52.6 million in 2001-02 to an estimated $220
million last financial year. The big jump was mostly due to land sales
for various developments. By 2012, revenue is expected to hit $900
million a year.
To cater to the expected increase in visitors, there are plans for
4-6 hotels and resorts to open on the island by 2012, including a
six-star, $150 million resort. That resort - The Knolls - is a joint
venture between the Pontiac Land Group and Thai developer City Realty.
Designed by legendary hotelier Robert Burns and award-winning architect
Norman Foster, it will be ready in 2007 or 2008.
Mr Foster said this week the project offers a 'unique opportunity
to design a resort that is seamlessly integrated with the beauty of
its natural setting and three remarkable historic buildings. 'Our
design will fuse the contemporary with the historic, and create a
luxurious destination resort in the midst of the rainforest,' he said.
Sentosa Leisure Group's Mr Metzger says: 'We currently have 800 rooms
and the new hotels will add about 600 rooms. Eventually, the island
will have some 2,000 hotel rooms.'
But the new rooms will only be built if there is demand, he says.
In November 2002, Sentosa cut its admission from $6 to $2 - a key
factor in its rise in visitors. And admission may be free - some day.
'We'll continue to evaluate the admission fee, if it's necessary,
or if it can be lowered more,' says Mr Metzger. 'I have a hard time
coming up with any resort in the world that charges admission. Now
that, to me, says it all.'
However, it's not just visitor dollars that Sentosa is eyeing. The
residential development Sentosa Cove is expected to draw an estimated
$3 billion of investment through the sale of 2,600 homes, including
bungalows, terrace houses and condominiums. Also to be built is a
$20 million marina that will accommodate up to 240 boats, including
10 mega-yachts.
However, the most talked-about - and controversial - idea is a possible
casino resort on the Southern Islands. Las Vegas Sands president and
chief operating officer William Weidner was quoted in previous media
reports as saying his company is ready to pump in as much as US$2
billion to operate a casino on Sentosa. Las Vegas Sands is behind
the Venetian Casino Resort in Las Vegas and Sands Macao in Macau.
'If the Southern Islands become a larger resort destination, and maybe
includes a casino, then investment in it would probably go up,' says
Mr Metzger. 'The original plan was for a $1 billion development, but
realistically, it would have to be a $2 billion investment to be a
major destination. However, we don't know what direction it's taking
and we won't know till year-end when studies are finished.' |
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