Officials at Resorts World Sentosa in Singapore say they aren’t optimistic regarding the first half of 2020 because of the ongoing novel coronavirus disease outbreak.
Genting Singapore, parent company of the integrated casino resort, released its fourth quarter 2019 and full-year financial results today.
The group reported revenues in 2020 totaled SGD$2.48 billion ($1.8 billion), a two percent dip compared with the prior year. Net profit was just shy of $500 million, a nine percent year-over-year decline.
Company officials are telling investors not to be bullish on the first six months in 2020.
With the novel coronavirus issue that has created massive disruption to the travel and tourism industries, the Group is generally pessimistic about the outlook for the first half of 2020,” the filing warned. “
Last April, Resorts World Sentosa and Marina Bay Sands – the only two licensed casinos in the city-state – each pledged to invest $3.3 billion in renovations and expansions to their respective properties.
Virus Hits Singapore
The first reported case of the novel coronavirus in Singapore came late last month, when a guest was confirmed to be infected at the Shangri-La’s Rasa Sentosa Resort and Spa. The hotel is less than a mile from Resorts World.
More recently, a 35-year-old Singaporean man who works at the Resorts World Sentosa casino was diagnosed with the virus. According to the World Health Organization (WHO), there are 45 confirmed cases of the coronavirus in Singapore.
Unlike in China’s Macau, where casinos remain closed because of the virus outbreak, Singapore’s two casinos are open.
“You have our assurance that all areas and touchpoints in the casino have undergone deep cleaning, thorough disinfection, and comprehensive sanitization,” RW Sentosa says on its website. “We are also closely monitoring the health of all our employees, including twice daily temperature checks.”
No Down Time
The coronavirus is keeping some would-be visitors away from Resorts World Sentosa. But that doesn’t mean workers will be afforded time off. Instead, Genting Singapore says it will use the period to enhance the resort.
“We will be embarking on a stronger productivity drive and utilize this period to refresh and develop our offerings,” company commentary explained.
Part of the resort’s $3.3 billion expansion includes two immersive entertainment theme parks. Minions World and Super Nintendo World, according to Genting, will bring the “Despicable Me” characters and Super Nintendo games to life.
Genting Singapore is also hoping to spend as much as $10 billion on building an integrated resort in Japan. Earlier this month, shareholders approved an investment of up to $10 billion, should the company receive one of the three gaming licenses.
Following our response to Osaka and Yokohama’s Request-for-Concept (RFC), we are now stepping up our efforts and deploying more resources to prepare for the Request for Proposal (RFP) process,” Genting explained.
Gaming industry analysts believe Japan’s three casinos could generate more than $20 billion annually upon market maturation. Las Vegas Sands, the parent company to Marina Bay Sands, is considered the favorite for one of the permits.