Will aquarium attraction turn the tide for Resorts World Sentosa?
Singapore’s Resorts World Sentosa will open its new Singapore Oceanarium on 23 July, part of an ongoing multi-year expansion project.
In a news release onMonday, RWS described the attraction as “a landmark institute” that will “deepen understanding” of the undersea world through multi-sensory storytelling and immersive digital displays.
Investments for exclusivity
In 2019, Singapore guaranteed “business certainty” to RWS and its only market rival, Marina Bay Sands, ensuring their exclusive rights to gaming through 2030. The resorts in turn committed about S$9 billion ($7 billion) in non-gaming investments to grow tourism in the republic.
But in a hiccup for RWS last November, regulators extended its licence for just two years instead of the typical three. They cited an independent panel that questioned RWS’ ability to “develop, maintain and promote its integrated resort as a compelling tourist destination that meets prevailing market demand and industry standards”.
Following the announcement, Genting Singapore Secretary Liew Lan Hing promised a “transformation” of the property to “to deepen its destination appeal”.
Singapore Oceanarium is part of that plan. So are other attractions such as Universal Studios’ Illumination’s Minion Land, which debuted in February, and the all-suite Laurus Hotel, which will open later this year.
Analysts: Better performance in Q3
RWS could use a lift. It posted revenue of S$626.2 million in the first quarter, down 20% year-on-year, although up 2% from the prior quarter.
According to the Singapore Business Review, gaming for the period improved thanks to the Chinese New Year. But non-gaming dropped due to a strong Singapore dollar, the impact of ongoing renovations and a dearth of hotel rooms.
Nomura analysts Tushar Mohata and Alpa Aggarwal anticipate continuing sluggishness in the second quarter with “lower hotel inventory, higher costs [amid hiring] and a seasonally low period”. But they expect expect earnings to ramp up as new attractions are completed.
RWS CEO Tan Hee Teck called the Oceanarium “not just a destination but a catalyst for change, a place where curiosity transforms into knowledge and knowledge into real action”. It is also three times bigger than its predecessor, the SEA Aquarium, which drew an average of 18,000 visitors per day.
Genting Singapore has more additions in the works. It has broken ground on a waterfront complex that will add two more hotels, a retail and dining district and an 88-metre light sculpture.