How Resorts World Sentosa's tourism performance was assessed 'unsatisfactory' ahead of licence renewal

SINGAPORE: The casino licence of Resorts World Sentosa (RWS), one of two integrated resorts in Singapore, has been renewed for two years – instead of the usual three – with authorities citing "unsatisfactory" tourism performance.

Over a period of evaluation from the start of January 2021 to the end of December 2023, an evaluation panel found a number of areas that required “rectification and substantial improvement”, according to the Gambling Regulatory Authority (GRA).

Asked to elaborate on the assessment metrics for Singapore's integrated resorts, the GRA and the Ministry of Trade and Industry (MTI) both pointed CNA to the Casino Control Act.

The legislation states that three or more people may be appointed to form the evaluation panel, to look at the visitor appeal of the integrated resort; how it compares with other similar attractions in the world or prevailing industry standards; whether it meets prevailing market demand; and how it contributes to Singapore's tourism industry.

MTI said the panel consists of senior business leaders with expertise ranging from corporate governance and finance to hospitality, entertainment, tourism and the arts.

The Casino Control Act also lists performance indicators, including:

• The number of paying and non-paying visitors to the integrated resort and its components
• Visitor satisfaction levels
• Frequency and extent of reinvestment into the integrated resort and its components
• Availability of facilities for use by visitors to the integrated resort and its components, and the period of time when such facilities are unavailable

The Singapore Tourism Board (STB) and Sentosa Development Corporation - which manages the island where RWS is located - said they were unable to disclose details of RWS’ performance in relation to its licence renewal.

"NOT TOO CROWDED"?

Before the COVID-19 pandemic, more than 20 million people visited RWS annually, the company said.

It did not provide figures for more recent years, but said visitor numbers have been steadily recovering in tandem with international arrivals.

Pandemic-related border measures and curbs were in place for most of the evaluation period, before they were lifted in early 2023.

Apart from its casino, RWS - which opened in 2010 - has four attractions, six signature restaurants and seven hotels.

Its Universal Studios Singapore (USS) theme park only resumed daily operations in June 2023, and Adventure Cove Waterpark in September last year.

Sentosa Development Corporation, meanwhile, previously told CNA that it received 15 million visitors in 2023, which is around 75 per cent of pre-pandemic numbers. The figure includes both visitors who go to RWS and those who visit other attractions in Sentosa.

DBS Group Research analyst Jason Sum found RWS' two-year licence renewal somewhat surprising. “We believe part of its ‘unsatisfactory performance’ can be attributed to disruptions caused by the pandemic,” he said.

One local gambler, who only wanted to be identified as Wang TL, told CNA that RWS’ casino was generally less crowded than the casino at the other integrated resort, Marina Bay Sands (MBS).

The 50-year-old visits either casino up to two times a month. He said service at RWS seems more personalised, but was unsure if that was due to it being less busy.

“Not too crowded is (also) not a good thing, that means their customer base is very small,” he said, adding that he also feels like not much has changed about RWS' offerings for the last 15 years.

USS scored 73.7 in Singapore's latest Customer Satisfaction Index in 2022, lower than the average of 74.1 for attractions and the national score of 74.6 across all sectors.

The highest rated attraction was the Singapore Zoo at 75.2, followed by the Gardens By The Bay park at 75.1.

"LONG-AWAITED REJUVENATION"

Asked about its improvement and development plans, RWS owner Genting Singapore pointed to efforts to attract visitors by "creating new and differentiated year-round programming and events that align with the latest lifestyle and tourism trends".

The integrated resort is also in the midst of what it calls RWS 2.0, an expansion plan that includes the rebranding of its SEA Aquarium as the Singapore Oceanarium, and opening a Minion Land zone within USS next year.

Last month, RWS also broke ground on a new waterfront development that will feature a promenade, a “mountain trail” and an 88m-tall light sculpture.

These moves will cost close to S$7 billion (US$5 billion) over eight years and increase RWS' gross floor area by 50 per cent.

Mr Brandon Chan, a senior lecturer at the Singapore Institute of Technology, called RWS 2.0 a “long-awaited rejuvenation” but said it remains to be seen if it'll "achieve the desired outcomes of sustained growth and increased returns on investment for its shareholders".

STB's executive director of infrastructure planning and management Ranita Sundramoorthy noted that many of the offerings by the integrated resorts "are heavy investments that require significant capital outlay and might otherwise not have come to Singapore”.

The government has supported RWS and will continue to do so where necessary to improve its offerings to be a compelling tourist destination, she added.

During the evaluation period for RWS' casino licence renewal, large-scale refurbishments  – which were not staggered and led to significant closures – may have also contributed to a negative rating, said Mr Sum of DBS.

It could also have caused RWS to lag in inbound tourist arrivals, he added, though he reiterated the pandemic's impact on such numbers.

Ms Kellie Jubela, 18, who visited USS in November, said part of it was under renovation to prepare for the opening of Minion Land, causing certain routes to be blocked.

“Seeing many elderly and mums with their babies – it must be very inconvenient for them to make one whole round around the park to exit," she said.

Ms Jubela also said some USS buildings looked mouldy, that there were black stains under some signs, and that some boats in the Jurassic Park ride had algae on their handles. 

Mr Chan, the lecturer, said tourism operators like RWS needed to balance scheduled, periodic closures for necessary maintenance of facilities with keeping operations running to meet demand.

“The risk that the latter brings is the eventual breakdown of operating systems, which could lead to more dire consequences," he noted, adding that management thus needs to evaluate how to align operations with broader business strategies and financial goals.

The prospect of rivals emerging in other Asian countries may have been yet another factor behind RWS’ performance being deemed unsatisfactory, said experts and industry figures.

STB’s Ms Sundramoorthy noted that regional and international competition was expected to intensify, with newer integrated resorts, attractions and entertainment offerings opening in the next few years.

“As an important part of our tourism landscape, our integrated resorts must be held to high standards to fulfil their original intent to boost Singapore’s tourism sector,” she said.

A Reddit thread from a year ago had users complaining about the state of USS and comparing it with parks overseas.

Among hundreds of reactions, some pointed to Universal Studios in Japan as much bigger, with many more visitors and yet still well-maintained. “It’s a world of a difference,” read one comment.