MBS investment to break even in 5 years
In Singapore, the Marina Bay Sands integrated resort opened to the public on April 27, 2010. The US$5.5 billion development is the world’s second most expensive casino but Sands CEO Sheldon Adelson expects it to break even in five years. At precisely 3.18pm, Marina Bay Sands was declared open. Sands CEO Sheldon Adelson has high hopes for this development, calling it his “most valuable property” and expects that gaming businesses in Asia will soon account for 85 per cent of his company’s total revenue. Mr Adelson said the future of the gaming industry is in Asia. And with Marina Bay Sands off the ground, he is looking to build more integrated resorts in Asia and Europe. But will the gaming industry see a glut? He said: “Not in my lifetime, not in your lifetime, not in your children’s lifetime. Mahjong is a game that’s been played not hundreds but for thousands of years. And the only way you can hit a cap or saturate the market is for people to change their culture. And that is not going to happen.”
Average annual revenues at Marina Bay Sands are expected to hit over US$1 billion a year and about 60 to 70 per cent of that will come from the casino floors. And Sands said junket operations, which are common in Macau but unusual elsewhere, will make up only a slight percentage of earnings. The integrated resort is also banking on the conference and exhibitions or MICE sector to bring in the revenue. At over a million square feet, its expo centre can fit over 45,000 people, making it one of the largest venues in Asia. A slew of deals have already been inked and the centre will hold its first event this weekend. About 70,000 people are expected at the resort every day. This is only phase one of the development. Phase two, which includes the opening of more retail stores, the rest of its hotels and iconic rooftop SkyPark, will take place on June 23.– Source: Channel NewsAsia
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