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The Business Times, 12 Jun 04

Tourism worse off if S'pore decides against casino: don
Any curbs on access could also put off operators, he says
By Daniel Buenas

(SINGAPORE) Singapore's tourism industry will be worse off if the government should decide against opening casinos here. And, if they are allowed, restricting access to certain social groups could put off casino operators, according to a US academic and expert in tourism management.

Chris Roberts, a University of Massachusetts professor who teaches and does research on casino and resort management, believes that not having a casino would be detrimental to Singapore's tourism trade.

'From a market perspective, it's about keeping up with the Joneses if you will,' said Dr Roberts. 'So many other tourism market places have gaming as an option for consumers, and the fact that Singapore doesn't, I think is already starting to hurt it.'

Dr Roberts was invited recently by the Hotel Association of Singapore to give a series of lectures and seminars here on hotel and resort management. He also advises Sentosa on tourism courses conducted on the island.

Dr Roberts believes that Singapore's unique governmental structure and tight controls will give it an advantage in suppressing the more undesirable side effects of casinos. He also pointed out that opening casinos won't mean that all tourists who come to Singapore will be hard-core gamblers, or even choose to gamble at all.

'Singapore becomes a more desirable, a more standard-looking tourism destination, by having a casino,' Dr Roberts said. 'Whether tourists use it or not doesn't matter, they just like to know that it is there, that it is part of a choice mix that people will have.'

However, should casinos be built on Singapore's shores, Dr Roberts feels that any plan to impose entry restrictions would discourage casino operators to set up shop here, as casinos often rely on heavy human traffic for steady revenue. 'Casino providers are going to be leery of that because it limits the volume of customers. For most casinos, 60 to 70 per cent of their revenue comes from slot machines, even those in Las Vegas, that focus on the high-end players,' he said. 'They need the mass, the 'grind', those who come in and just drop $50 for the day.'

Dr Roberts said that the 300 or so 'whales' - ultra-rich players who are willing to bet millions of dollars a night - that are sought after by casinos all over the world, are unlikely to be drawn to casinos here. Likewise, he said that premium players - those who spend $3,000 to $5,000 a night - will have the financial resources to go to other more trendy gambling spots.

'If there's an economic policy made about the level of the premium player, you're going to cut down the quantity of customers so narrow, that the vendor is not going to see economic viability,' he said. 'They need volume, so if Singapore were to implement these restrictions, I think the casino companies are going to look at it very, very hesitantly.'

Dr Roberts believes, however, that the best option for the government is to integrate casinos into a larger resort setting, where casino patrons will have other activities to occupy themselves.

Besides a higher tourist profile, Dr Roberts believes that having casinos in Singapore would result in a number of spin-off industries, including dealership schools. 'Casinos need dealers, and the common pattern is to require applicants to go to dealer school, outside the business ... as casinos don't want to pay the training costs,' he said.

Another spin-off that may arise is in the security industry. 'The type of surveillance and security the casinos use are probably technologies that most businesses don't,' said Dr Roberts. 'So the demand for those services will grow.'

The possibility of building casinos on one of the Southern Islands was mooted by the government earlier this year, and there has been a torrent of responses by proponents - and opponents - to the idea in the local press. Just last month, a high-level government delegation led by Minister of State for Trade and Industry and National Development, Vivian Balakrishnan, made a trip to study casino operations in Las Vegas, the gaming capital of the world.

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