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Taiwan
News, 8 Nov 04
Las
Vegas bigwigs eyeing Singapore casino project
By Roberto Coloma
U.S. looks for a piece of the action as city-state's officials debate
plan
Watch out, Macau. International gambling companies searching
for new Asian markets are waiting for Singapore to give the go-ahead
for a proposed Las Vegas-style casino resort aimed at boosting tourism
in the wealthy city-state.
Singapore is expected to issue a formal Request for Proposal soon
to potential developers, and top executives of the U.S. casino industry
have been visiting the Southeast Asian country to check out business
opportunities. The proposals would form the basis for further studies
on the project, which has become a delicate matter in Singapore following
an outcry from religious groups and individuals fearing the social
impact of large-scale gambling.
Top executives from casino giants Caesars Entertainment and Harrah's
Entertainment were part of a high-powered U.S. business delegation
that called on Prime Minister Lee Hsien Loong and other officials
here last week.
Elizabeth Hernandez, regional director for industry and affairs of
the U.S.-ASEAN Business Council, told AFP the proposed casino resort
was part of the delegation's discussions with Singapore ministers.
"Basically our companies would like to be able to participate," Hernandez
said, adding that it was "made clear to us" that the RFP would be
issued in the next few months. But she said "the jury is still out"
on whether the casino project will eventually take off.
An outpouring of dissent among ordinary Singaporeans is making the
government think hard about the project, which critics say could spawn
gambling addicts and ruin poor families. Even members of the ruling
People's Action Party have differed over the idea of a casino, although
a horse racing club, lotteries and legal sports betting operations
are allowed - and hugely popular.
Singaporean casual gamblers and high-rollers have to travel to nearby
countries such as Malaysia, the Philippines and Cambodia, or go all
the way to Macau, Australia, Las Vegas or Europe to satisfy their
casino itch. Cruise ships also offer gambling on board once they leave
Singapore waters.
A spokesman for Singapore's ministry of trade and industry told AFP
"the government is currently studying the development of a distinctive
world-class integrated resort which could include a casino component."
In a recent community dialogue, Trade and Industry Minister Lim Hng
Kiang took pains to explain the government's position, saying the
casino would only generate 30-40 percent of revenues from an integrated
leisure complex. The government will try to minimize any social harm
to Singaporeans if the casino is built, the Straits Times newspaper
quoted him as saying.
Prime Minister Lee, in his first policy address after being sworn
in last August, called for a national debate on the casino issue and
promised that "we will not make it easy for people to go broke and
ruin their families.We will find reasonable restrictions, draw a line,
call for proposals, test the market," he said.
Jonathan Galaviz, a Las Vegas-based casino industry analyst who was
in Singapore recently, said a globally-competitive casino resort would
require at least US$1 billion in investment and take two years to
build from scratch. He cautioned against the proposal to limit access
by poorer Singaporeans to the casino. "You could have a US$1 billion
casino investment but if there is a substantial restriction on local
participation, you will not have the necessary baseline support to
make the casino viable," he told AFP.
With an affluent population of four million people and some seven
million tourists per year, Singapore can support a major casino complex,
said Galaviz, who noted that metropolitan Las Vegas has an even smaller
population. Singapore boasts a per capita income of more than US$22,700.
The tourism industry is expected to generate US$5 billion in receipts
this year.
Galaviz, a partner at equity research and professional services firm
Galaviz Ong and Co., said Singapore should decide soon whether it
wants a casino, warning that Thailand, another Southeast Asian country
heavily dependent on tourism, might embark on a similar project. Singapore
is not in a dire financial position and doesn't need casino gaming
just for financial revenue purposes, he said. "For Singapore, the
strategic objective is to protect and enhance its tourism industry."
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