Sentosa theme park ticket sales put at $315m a year

Universal Studios aims to draw 4.5m visitors; 20 rides to open next year

AT around S$70 per entry to Universal Studios Singapore (USS), Genting Singapore, which invested more than S$1 billion in the theme park could reap around S$315 million a year in ticket sales alone.

Speaking at a news conference yesterday, Douglas Trueblood, general manager (sales & marketing) for Universal Parks and Resorts, said the target is to attract 4.5 million visitors a year to the theme park at Resorts World at Sentosa (RWS), which is owned by Genting Singapore.

Assuming USS sells 4.5 million tickets at S$70 apiece, ticket sales could hit S$315 million.

Mr Trueblood did not reveal ticket prices, but Genting Singapore chairman and CEO Lim Kok Thay has said they will be lower than those at other Universal Studios theme parks.

Earlier estimates by analysts put the entry price at around S$80, compared with about US$70 in the US and 5,800 yen in Japan.

Analysts at Morgan Stanley Research (Asia-Pacific) expect entry prices to USS to be even lower at around S$70.

In a recent Morgan Stanley Research report, it was also estimated that USS could register total revenue of S$388 million for 2010, S$491 million for 2011 and S$545 million for 2012. This includes revenue from merchandising and F&B.

Interestingly, Morgan Stanley Research said Genting Singapore can offer cheaper entry tickets because of the lower construction cost of USS at about US$1 billion, which it said is about half the cost of Universal Studios Japan.

Morgan Stanley Research noted that no details have been made public on the USS franchise fee, but said it is likely that RWS will have to pay an upfront fee as well as a share of gross profit to Universal Studios once the theme park is operating.

Giving an update on USS which is in the final stages of construction, Mr Trueblood said that of the park’s 24 rides, 20 will open next year, with 18 of them original or adapted for Singapore.

Universal Parks & Resorts chairman and CEO Tom Williams said: ‘Universal Studios Singapore will be a unique experience and family destination with many new rides, shows and themes that can’t be found at other Universal Studios parks.’

USS will consist of seven themed zones that surround a man-made lagoon. The zones are: The Lost World; Ancient Egypt; Sci-Fi City; New York; Hollywood; Madagascar; and Far Far Away. Rides including the Jurassic Park Rapids Adventure, WaterWorld and Revenge of the Mummy will be located within these zones.

Mr Trueblood revealed that a Transformers attraction will open in 2011 and other new attractions will be added in turn. ‘Over the years, we will evolve,’ he said.

Source : Business Times – 21 Oct 2009

Universal Studios theme-park at Sentosa to offer 18 unique rides and attractions

Island resort Sentosa will soon be home to the world’s tallest duel roller-coaster ride and movie stars such as Marilyn Monroe, Shrek and the motley mob of Alex, Marty, Melman and Gloria last spotted in Madagascar,the movie.

The Universal Studios theme-park which will be housed on the 49 hectares Resorts World at Sentosa, revealed Tuesday its two dozen attractions, including 18 rides and attractions specially created or adapted for Singapore.

“Universal Studios Singapore will be its own unique experience and family destination with many new rides, shows and themes that can’t be found at other Universal Studios parks around the world,” said Tom Williams, chairman and CEO, Universal Parks & Resorts.

Williams said of Tuesday’s unveiling of some of the theme-park’s attractions, that attention was paid to location-specific creatives and designs so as to offer both first-time and devoted Universal Studios visitors, an exciting, different and memorable experience.

The theme-park will feature seven zones, each with its own iconic food outlets and entertainment attractions.

Tied-in to movie favourites, are the Madagascar and Far Far Away zones, featuring attractions for both young and old.

Visitors can explore Shrek’s swamp home, a castle and party at a Knight Club, or ‘move it, move it’ with wacky King Julien at a beach party after outwitting the Foosa in an original, one-of-a-kind immersive river ride that should be as wild as the lemur tribe of Madagascar.

Sci-fi buffs will have a city of their own and be able to join in the Human vs Cylons battle on the Battlestar Galactica dueling coasters, the tallest of its kind in the world. Another battle in this zone is the highly-anticipated Transformers ride which debuts at Universal Studios Singapore before heading out to the US theme-park.

As for adventure-seekers, they can trip to the 1930’s Golden Age of Egyptian Exploration to discover the Sphinx, Pharaoh’s tombs and mummies in the Revenge of the Mummy attraction, or take on the Lost World zone inhabited by dinosaurs at the redesigned Jurassic Park Rapids Adventure and Waterworld, with death defying stunts.

At the Hollywood zone, visitors can expect Broadway-style theatre modelled after the famous Hollywood Pantages Theatre and walk down Hollywood Boulevard complete with the famous Walk of Fame.

Without hopping on a jet, visitors will be transported to New York for a slice of the Big Apple, from NY-style pizza to movie-set scenes, including a special effects stage with Steven Spielberg who offers behind-the-scenes peeks and Stage 28 for star wannabes who get a chance to be part of a movie production.

“Asians love movies and we are proud to introduce the region’s first and only Universal Studios theme park” said Tan Hee Teck, CEO of Resorts World Sentosa.

According to Tan, the project is in the final stages of construction, and Universal Studios Singapore will be one of the biggest and most exciting theme-parks in the world.

Apart from Asia’s only Universal Studios theme park which will have 30 restaurants and food carts, as well as 20 retail stores and carts supporting the various attractions, Resorts World boasts the world’s largest Marine Life Park, a destination spa – ESPA and a designer casino.

Resorts World at Sentosa is slated to have its soft opening in early 2010.

Source : Channel NewsAsia – 20 Oct 2009

Seamless experience for Sentosa IR visitors

MOUNT Faber Leisure Group has forged a partnership with Resorts World Sentosa (RWS) to serve visitors to the integrated resort.

Under the partnership, the two parties will jointly distribute and sell admission and attraction tickets for RWS.

‘We are working towards delivering a wide choice of experiences and providing a high standard of service for guests to RWS through The Jewel Box, Singapore’s Iconic Hilltop Destination gateway,’ said Mount Faber CEO Susan Teh.

RWS and Mount Faber will collaborate in key areas, such as a common ticketing system and partnering in MICE events.

There are also plans to create exclusive daily packages that cover all RWS attractions and provide transport services to give RWS visitors a seamless ride experience.

The resort is slated for a soft opening early next year.

Source : Business Times – 15 Oct 2009

Resorts World at Sentosa to open four new hotels next year

Singapore’s second integrated resort operator, Resorts World at Sentosa, has refuted accusations that more than half of the 10,000 jobs available would go to foreigners.

Its management says Singaporeans remain its top priority when hiring, and it is receiving up to a thousand applications a day.

The comments were made at the media preview of four new hotels that will be opening on the island next year.

The Maxims Tower, Hotel Michael, Festive Hotel and Hard Rock Hotel are just four of six hotels that locals and foreigners alike can look forward to staying at.

Each hotel has a unique theme designed to cater to the needs of a particular set of guests.

For example, the Maxims Tower is an all-suite hotel with 24-hour butler service, built directly above the casino.

It is an exclusive by-invitation-only hotel intended for high-rollers, royalty and VIPs.

The six hotels can accommodate up to a total of 1,800 guests.

According to Resorts World at Sentosa, about 40 per cent of the 10,000 people hired will be working in the hotels.

And its management is confident the rooms will be filled, in spite of the uncertain times.

Vice-president, Rooms at Resorts World at Sentosa, Andrew Hickey, said: “Having six hotels plus all the other amenities around the hotels… That’s going to be very, very attractive. And we’re very certain there will be high demand.”

The remaining 60 per cent of 10,000 strong staff will be distributed evenly between the casino and Universal Studios.

Eighty per cent of the 500 people already hired are locals, and Resorts World at Sentosa says that the bulk of the jobs will continue to go to Singaporeans, with the exception of specialist jobs that require experience in gaming and international theme parks.

The Festive Hotel, with its family-themed focus, boasts of loft beds for parents travelling with children. The Festive Hotel, alongside the Maxims Tower, Hotel Michael and the Hard Rock Hotel, will open early next year.

The Resorts World at Sentosa says it is already receiving enquiries about booking reservations.

Source : Channel NewsAsia – Apr 2009

 

Premium for convenience at Resorts World

GUESTS will be charged a premium for a night’s stay in the hotels in Resorts World at Sentosa, when it opens next year.

Yesterday, the casino-resort’s chief executive officer Tan Hee Teck said that hotels in theme parks overseas typically charge a higher rate than similar properties in the city.

This is because they offer visitors a range of attractions within walking distance, including Singapore’s first Universal Studios at Resorts World.

Family travellers with young children will enjoy the convenience of being able to take their tired kids back for a rest before coming back out again, without having to incur extra transport costs.

Minimum rates at five-star properties on Sentosa can range from $375 to $650.

Although Resorts World at Sentosa room rates have not been firmed up, The Straits Times understands that hotels in theme parks can charge up to 30 per cent more than the same class of hotel outside.

However, Mr Klaus Kohlmayr, director of service for hotel consultancy firm Integrated Decisions and Systems International, said it might not be a wise move to do so in such a weak market.

He said: ‘Leisure markets are the most price-sensitive, especially for families. They might decide it is cheaper to stay outside and take a taxi in for the day.’

Still, Resorts World at Sentosa is confident of drawing the crowds when it opens its doors next year.

The 49ha integrated resort on Sentosa – Singapore’s second after the Marina Bay Sands project – expects 15 million visitors in its first full year of operation. Mr Tan said the resort, with its theme park, casino, shopping and other attractions, is a destination in itself where people can stay for five to seven days.

The project is on schedule to open in the first quarter of next year, he said.

Of the resort’s six hotels, four – Hard Rock Hotel, Maxims Tower, Hotel Michael and Festive Hotel – will be ready by the first quarter of next year.

Some 1,350 out of 1,800 rooms will be available for the resort’s soft opening, with rooms going on sale by the end of the year.

Yesterday, the media was given a glimpse of the interior of the US$223 million (S$338 million) Hard Rock Hotel. It will have 10 suites, 350 rooms, 26 meeting rooms and a ballroom that can accommodate up to 7,300 people.

Guests will be able to take in live performances in an outdoor venue from the comfort of their room balconies.

In a nod to the resort positioning itself as a family destination, Hard Rock Hotel will have rooms that can accommodate up to six people.

In keeping with Hard Rock’s music industry theme, the hotel will be decorated with guitar-shaped and other musical motifs. Bathroom mirrors adorned with light bulbs will give guests the feel of being in a rock star’s dressing room.

Together with the opening of the new Hard Rock Hotel, Singapore will also get another Hard Rock Cafe, announced Mr Stephen Lau, who heads HPL Hotels & Resorts, the main franchise owner of the Hard Rock brand.

The new cafe, which will be slightly smaller than the one in Cuscaden Road, will be on Resort World’s Festive Walk, a pedestrian mall lined with shops and restaurants.

Mr Lau said the 19-year-old outlet off Orchard Road will also be refurbished.

Source : Straits Times – Mar 2009

Resorts World at Sentosa on track to open 4 hotels by 2010

Operator of Singapore’s second integrated resort, Resorts World at Sentosa, said it is on track to open four of its six hotels by the first quarter of 2010, adding some 1,350 rooms in the Republic.

Even though tourist arrivals, hotel occupancy and room rates have been falling due to the global economic slowdown, the integrated resort will be launched as scheduled.

The IR expects to fill 9,000 job vacancies by the end of this year and to bring the total number to 10,000 when its doors open.

Of these positions, 3,000 will be for the casino, 3,000 for theme park operations and about 4,000 for hotel and other entertainment facilities.

Tan Hee Teck, CEO, Resorts World at Sentosa, said: “Right now, we have 400 over employees and we will continue to grow that over the next many months. The peak of that hiring will probably come at the end of the third quarter, in the early fourth quarter of this year.

“Those people who will need training, especially in specialised equipment for the theme park and even for the casino, will be hired first. We already have an internship programme where we hire Singaporeans to be sent to Osaka in Japan and Orlando in the US for training and for familiarisation.”

This was revealed as the resort operator unveiled plans for a Hard Rock Hotel on Thursday. The US$223 million venture is one of the four hotels that will be opened at the integrated resort by next March.

The Hard Rock Hotel, comprising 10 suites and 350 deluxe rooms, will also feature one of Asia’s largest ballrooms that can seat up to 7,300 people.

Room rates at the hotel have not been fixed, but the resort operator said it would be comparable to other theme parks worldwide and on par with five-star room rates here.

While that may seem steep to some in times like these, its venture partner said it is confident business will do well.

Hamish Dodds, president & CEO, Hard Rock International, said: “We have a very healthy business in Japan. We’re now opening in Macau and targeting the Chinese market. Southeast Asia, with our relationship with Ong Beng Seng here in Singapore, has always been very important to us.”

Some 1,800 hotel rooms are expected to come onto the market when all six hotels at Resorts World are ready.

Source : Channel NewsAsia – Mar 2009

Sentosa, Marina IRs get pricier

 

Both are revising costs upwards for 2nd time

SINGAPORE’S two integrated resorts (IRs) are getting increasingly expensive, with both developers revising their cost estimates upwards for a second time.

Construction in progress at Marina Bay Sands, certain section of which are expected to open by year’s end. It was announced last week that the IR project is now estimated to cost US$5.4 billion, up from previous estimates of US$3.6 billion and US$4.5 billion. — ST PHOTO: ALPHONSUS CHERN

An additional $590 million will need to be pumped into the kitty for the Sentosa project, while the price tag for the Marina Bay Sands development has gone up by US$900 million.

Resorts World at Sentosa yesterday revised the cost for the 49ha resort in its earnings call, bringing it up to $6.59 billion. This is the second time the budget has been revised: It was bumped up from $5.2 billion to $6 billion in November 2007.

Marina Bay Sands will cost more as well. At last week’s earnings call, Las Vegas Sands Corp announced its Singapore IR is estimated to cost US$5.4 billion, an upward revision from previous estimates of US$3.6 billion and US$4.5 billion.

No explanations were given by Sands for the increase in cost, but it raised US$2.1 billion last November in a rights issue to cover its projects, including the one in Singapore.

Resorts World at Sentosa chief executive officer Tan Hee Teck said yesterday that additional funding would come from operating cash flows when the casino resort opens next year.

The extra money was needed for improvements to the design of the casino project, he said. Areas which were tweaked included pedestrian flow, the monorail stop at the resort and adjustments to the 24 attractions.

He said: ‘We want to make sure each and every attraction is up to standard. We found we needed more money to bring the attractions up to a superlative level.’ Moreover, construction costs had risen sharply in the last few years, he added. Steel, for example, rose from $800 per tonne in 2007 to $1,800 last year.

CIMB-GK Song Seng Wun said it was simply bad timing that the IR projects were awarded at the peak of the construction boom, which led to costs spiralling upwards.

Construction projects awarded earlier do not benefit from prices softening since the global financial meltdown, as they had locked in materials at a higher rate, Resorts World’s Mr Tan said.

Despite the revision in budget and the ongoing global recession, Mr Justin Tan, managing director of parent company Genting International, said he is ’still as confident’ in the success of the project.

As travellers trim their budget to take in short-haul travel, visitors from China and India who may have splurged on trips to Las Vegas or Europe would head to Singapore instead, he added.

Resorts World at Sentosa is slated to open on schedule by March next year.

One section of the resort is due for completion next week when its first 11-storey hotel, the Maxims Tower, is topped off. It will be the first development to be completed at either of the IRs.

Marina Bay Sands is expected to open in the fourth quarter of this year. However, it is uncertain which parts of the resort will be ready as Las Vegas Corp said only ‘certain features’ are targeted to be ready by December.

The resort has applied to the Government for a staggered opening, but has yet to receive official approval.

Source : Straits Times – Feb 2009

Genting Int’l to pour another $590m into IR

Genting International has announced that Resorts World at Sentosa is now expected to increase its investment in the integrated resort (IR) to $6.59 billion, up from $6 billion.

In a statement released yesterday, it added that the additional investment will be funded by operating cash flows from the IR when it opens in the first quarter of 2010. ‘Financing for the resort is in place with the successful syndication of a $4 billion credit facility in April 2008. As at 31 December 2008, Resorts World at Sentosa Pte Ltd has awarded more than $4.5 billion of the $6.59 billion project costs,’ it said.

First to open will be four hotels, the casino, Le Vie Theatre, a 7,300-seat ballroom, and Universal Studios Singapore.

Resorts World’s chief executive officer Tan Hee Teck added that to date, it has drawn down $600 million of its credit facility. One third of the IR was funded by equity. About $2 billion has been set aside for interest costs and pre-operating costs.

At the time of opening, capital expenditure is projected to be less than $6 billion.

Mr Tan said that the increase in investment is due to changes made to the design and architecture of the integrated resort to improve its entertainment offerings, including enhancements to its casino and Universal Studios Singapore.

Of its Universal Studios attractions, 18 out of 24 are new or have been redesigned for Singapore.

Improvements were made to the quality of interiors as well as to foot traffic accessibility to retail and dining outlets.

The last time the budget for the Sentosa IR was revised upwards was in November 2007 – from $5.2 billion to $6 billion. This was attributed to building-cost escalation and more attractions being added.

The budget for Las Vegas Sand’s IR, Marina Bay Sands, has also been increased from US$3.6 billion to about US$4.5 billion.

While construction costs are said to be coming down this year, Mr Tan said that it would only benefit from contracts signed within the last two months.

The announcement comes on the back of Genting International’s full year financial results which saw it register a 14 per cent fall in revenue to $643.8 million, down from $751.6 million a year ago.

This was attributed to lower revenue from the group’s UK casino’s operations and lower interest income. Genting said that revenue from the UK casinos’s operations was affected by the weakening of pound against the Singapore dollar and lower business volumes.

It also reported a net loss of $124.8 million for FY2008, compared with a net loss of $381.5 million for FY2007. This can be largely attributed to a lower impairment loss on goodwill recorded in the current financial year for the acquisition of Genting Stanley of $100.8 million compared with $454.6 million in the previous year.

For the year, it also said that the UK casinos’s operations recorded a loss before impairment, foreign exchange losses and interest expense of $12.5 million compared to a profit of $53.4 million in 2007.

Mr Tan, however, is confident of the success of Resorts World at Sentosa as more cost-conscious Asian holiday-makers are travelling within the region. He said: ‘Asians are telling us they are doing medium to short-haul flights now.’

Source : Business Times -  Feb 2009

Resorts World at Sentosa to top out first hotel this month

Resorts World at Sentosa will top out its first hotel, Maxims Tower, by the end of this month.

The structural completion of the 11-storey hotel marks yet another major milestone in the development of the integrated resort, which remains on track for a soft opening in the first quarter of 2010.

Maxims Tower will open with three other hotels – Hotel Michael, Festive Hotel and Hard Rock Hotel – as well as the casino, Le Vie Theatre, a 7,300-seat Grand Ballroom, and Universal Studios Singapore.

Installation of ride equipment for the many attractions at Universal Studios Singapore has also begun, with testing and commissioning of the attractions scheduled to begin in October 2009.

Source : Channel NewsAsia – Feb 2009

New bridge linking mainland S’pore to Sentosa to open later this year

A new bridge linking mainland Singapore to Resorts World at Sentosa is expected to open later this year.

Resorts World said it should receive traffic ahead of its grand opening.

The 710-metre bridge is expected to serve some 15 million visitors a year once the resort is fully operational.

After completion, the traffic flow to Sentosa will be realigned. The three lanes are capable of handling some 6,000 vehicles per hour.

But the infrastructure also has a dual purpose. Under the bridge, it carries utility pipes for power, telecommunications lines and fresh water.

Source : Channel NewsAsia -  Jan 2009