Development Irs In Singapore Tourism Essay Example
Development Irs In Singapore Tourism Essay Example

Development Irs In Singapore Tourism Essay Example

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  • Pages: 8 (2153 words)
  • Published: October 6, 2017
  • Type: Analysis
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Many cities have recently started constructing their own resorts. For example, in Asia, Hong Kong Disneyland was opened on Lantau Island in September 2005. In Thailand, the first integrated resort (IR) was established in Phuket. This IR features seven luxury hotels that offer various amenities and activities like golf courses, spas, restaurants, and water sports. However, gambling is not allowed due to Thailand's strict laws against it.

In contrast to Thailand, Singapore legalized gambling on this British settlement island back in 1823. Unfortunately, this led to an increase in crime rates caused by gambling addiction. As a result, gambling was banned again within three years. Currently, Singapore permits limited legal gambling through government-run betting lotteries and the Singapore Jockey Club.

Singapore Prime Minister Lee Hsien Loong emphasized the "urgent need" for new tourist attractions and transformation during a parliament session on


April 18th, 2005. The introduction of integrated resorts (IRs) provided new profitable options for Singapore's tourism industry. These developments will also have positive effects on other sectors of Singapore's economy specifically in the Marina Bay Sands and Sentosa areas.

The authorities recognize that Singapore's tourism industry faces intense competition from neighboring destinations such as Bangkok and Hong Kong. Henceforth, the decision to legalize casinos in Singapore was made as a response to this competition posed by nearby countries.The nearby country of Malaysia also has its own casino and theme park in Genting Highlands, attracting tourists from Singapore. The introduction of Integrated Resorts (IRs) by the Singaporean government has resulted in the creation of approximately 35,000 jobs, both directly and indirectly. These IRs offer a range of facilities including hotels, restaurants, retail shops, convention centers theaters museums and

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theme parks. The investment made in these IRs is estimated to be around $710 million. Since their opening in 2010 visitor numbers have consistently reached record highs for eleven consecutive months. This growth in tourism has surpassed Hong Kong's visitor numbers. The Marina Bay Sands (MBS) casino alone attracts an average of 25,000 visitors per day, including both locals and tourists. As a result, Singapore earned a tourism revenue of $18.8 billion in 2010 - the highest it had been in ten years with a significant increase of 49% compared to previous estimates ranging between 17.5-18.5 billion Singapore dollars In the first quarter of 2011 there was an impressive growth rate reaching $5 billion US dollars - higher than the previous year.These revenues include various expenditures on shopping,dining entrance fees,and accommodations.The legalization of casinos has proven beneficial for Singapore's economy and tourism industryThe increase in tourism spending in Singapore can be attributed to the rise of tourists from Indonesia, India, and China. This is further supported by a positive economic sentiment and the opening of two integrated resorts that have attracted international visitors. In fact, these two integrated resorts alone contributed approximately $3.7 billion to Singapore's GDP in the first nine months of 2010.

The hotel industry predicts a growth rate of 10-12% in dining room revenue for 2011 and expects an average occupancy rate of around 80-85%. The integrated resorts have played a significant role in Singapore's economic growth by attracting more tourists and increasing visitor numbers. This has also benefited other sectors such as service and hospitality.

In February 2012, the integrated resorts created 60,000 jobs and contributed 1 to 1.5 percent of Singapore's GDP

(Straits Times, February 27, 2012). On the other hand, The Borgata Hotel Casino & Spa in Atlantic City is renowned for its classical Italian design and crystal pendants. It is a popular destination for gaming and entertainment purposes.

Being New Jersey's largest hotel with over 2000 suites and a height of forty storeys, Borgata has invested $1.1 billion since 2006 on expansions including restaurants owned by chefs Wolfgang Puck and Bobby Flay, a nightclub, the largest poker room in Atlantic City, as well as a larger casino floor. Additionally, in June 2008 Borgata started its second phase expansion with the creation of Water Club; an upscale boutique hotel costing $400 millionBorgata, the highest-grossing casino in Atlantic City since its opening in July 2003, combines traditional and modern Italian design with world-class amenities such as a luxurious European spa, retail stores, a high-action casino, and the largest poker room in Atlantic City. Introducing luxury lifestyle themes and custom sensory consumer entertainment retail stores to set itself apart from other casinos, Borgata aimed to change people's perception of Atlantic City by bringing a taste of Las Vegas to the Jersey Shore.

Atlantic City is known as the "Gambling Capital of the East Coast" and houses multiple casinos that generate significant annual gambling revenue and offer numerous hotel rooms - second only to Las Vegas. The construction of new casino hotels and condominiums has transformed the Atlantic City skyline. However, data released by the Ministry of Gaming Enforcement reveals a 13% decrease in operating margin for Atlantic City's casino industry during Q2 this year compared to Q2 2011, mainly due to declining carnival performance. Nonetheless, there is optimism for a

13% growth in upcoming quarters for the industry.From April 1 to June 20, Atlantic City casinos reported a total operating profit of $118 million. Gross operating profit in the casino industry showed mixed results, with nine casinos ending with profits but the carnival experiencing a loss of $35 million. The Atlantic Club had a loss of about $5 million, while Gold Bullion suffered a loss of approximately $400 million. Tropicana Casino and Resort Casino Association's president, Tony Rodio, acknowledged both positive aspects and challenges within the industry. Despite monthly increases in gambling revenue totaling $55 million during that quarter, it was insufficient to generate profits for some establishments. Analyst John Kempff from RBC Capital Markets revealed that Carnival spent $17 million on opening up and other costs, resulting in an operating profit remaining negative at $18 million. Maureen Mann, a spokesperson for Carnival, declined to comment on the quarterly figures.According to the Gaming Enforcement Division report, there were both positive and negative trends in the Atlantic City casino industry. Non-gambling income increased by 13%, including a 2% improvement in revenue from rooms, food and beverage entertainment, and other sources. Tropicana also saw an increase in its gross operating profit of approximately $10 million compared to the previous year's second quarter results. CEO Tony Rodio expressed satisfaction with these results and emphasized the importance of ongoing improvement. He mentioned that he contributed to enhancing a quarter of the resort by attracting cabarets, bars, eateries, and other non-gambling establishments in the courtyard. Rodio added that since it is a place for fun, its success naturally extends to gaming activities.

Similarly, Bally's Resort & Casino Atlantic City, Harrah's Resort

Atlantic City, Trump Plaza Hotel Casino, and Trump Taj Mahal Casino Resort also experienced an increase in their overall operating profits compared to last year's figures due partially due to rising real estate values.

On the contrary, BRIC Caesar Atlantic City, the Atlantic Club Hotel & Casino,Borgata Hotel,Casino,& Spa,and Showboat Atlantic City faced declining performance compared to last year's numbers.Specifically,Borgata experienced a 21% decline in profits for the quarter and a 2% decline year-to-date.This drop prompted Standard & Poor's Marina District Development Co., downgrade its credit rating from "B" to "B+" on Friday.The operators of Borgata, a limited liability company that owns and operates the casino in Atlantic City's Marina District Development Co., expressed disappointment in their performance. They attributed this to the challenging macroeconomic environment and increased competition towards the end of the year. These factors have negatively affected their success and raised concerns about their credit rating. Joe Lupo, Borgata's senior vice president, announced that an incident during a mini-baccarat game in July resulted in losses of up to $50 billion for the casino, significantly impacting its overall financial performance. Unfortunately, Lupo was unavailable for comment on Friday. Michael Frawley, Chief Operating Officer at Casino Hotel in Atlantic Club, stated that his hotel's total operating profit for the second quarter decreased by 50% compared to last year's same period. However, despite this setback, the hotel remains committed to its long-term strategy. The hotel recently rebranded from Atlantic City Hilton Casino Resort with hopes of attracting budget-conscious casino players and tourists. Frawley believes that it will take some time for their aggressive promotional approach to positively impact revenue and profitability. Recent news indicates that

casinos in Atlantic City may have overcome their most challenging times.
Despite the emergence of new casinos in Pennsylvania, New York, and Maryland, it is unlikely that any other casino can surpass Atlantic City in terms of popularity and success. However, this does not mean that Atlantic City should decrease its marketing efforts; on the contrary, it demonstrates that their marketing activities have been somewhat successful in isolating national competition. This highlights that AC offers a unique experience compared to places like PARX or sugar estates. To demonstrate the prosperity of Atlantic City, they must continue to devise clever and appealing marketing initiatives. The Borgata casino takes pride in offering a complete luxury vacation experience, including shopping, entertainment, and dining. Nevertheless, the main source of profit at Borgata remains the casinos. The hotel's retail aspect revolves around the casino area. While the gaming theme does not extend throughout the rest of the hotel, there is a distinct atmosphere on the casino floor and poker room that enhances sensory consumption for an overall enjoyable gambling experience.Customers are allowed to smoke in designated areas within the casino.Inside the casino, one can expect to hear slot machines ringing and buzzing along with contemporary music performed by popular artists.There are also flashing neon signs, rows of slot machines and tables, dealers , security guards ,and cocktail waitresses dressed in revealing outfitsThe Borgata casino offers a variety of tactile games for customers, including button-operated slot machines and card tables where players handle chips. Customers can also enjoy a drink while gambling, enhancing their overall experience. The casino itself spans approximately 161,000 square feet and features 4,100 slot machines and 200 gambling

tables. It even has a dedicated poker room.

To reward loyal customers, the Borgata has a rewards program called "My Borgata Rewards" with different levels. The first level is the red card, which is free and provides benefits like comp dollars for slots. The second level is the black card, which is earned by spending $1000 at the casino within a year and comes with perks such as valet parking and discounts at restaurants and shops in Borgata.

In addition to these reward levels, there is also a special program that includes Red Label and Black Label participant cards. With a red label card, members can earn slot and comp dollars, receive invitations to exclusive parties, and get special discounts. The black label card offers even more benefits like free valet parking and preferential access to the Amphora lounge in the Borgata restaurant.

The Borgata Hotel Casino & Spa follows sustainable standards set by Atlantic City. Currently undergoing redevelopment, it continues to attract stylish crowds with its new stores and eateries.This unique experiential retail merchant combines various techniques to create a one-of-a-kind consumer experience. The luxurious Borgata hotel is a major draw for their target customers, offering an opulent lifestyle and local entertainment. The casino at the Borgata is its main source of profit, serving as both a gaming destination and the host of Atlantic City's biggest poker tournaments.

The Borgata has built up a strong reputation since its establishment in 2006, particularly for its impressive poker room. With 85 tables offering games like Texas Hold'em, Stud poker, and pot-limit Omaha, this exceptional poker room features separate sections for cash games and regular matches. It also organizes top-notch tournaments,

including the recent WPT free event hosted by the WPT Borgata Poker room.

At this casino, players can enjoy daily, weekly, and seasonal poker games with substantial cash prizes for winners. Tournaments are held throughout spring, summer, autumn, and winter with millions of dollars awarded to participants. The World Poker Tour (WPT), well-known in international televised gambling and entertainment circles, has a strong presence in land-based games as well as on television screens, websites,and mobile devices.

Since 2002,the WPT has been leading the way in high-stakes tournament series that have evolved into an exceptional television show broadcasted in over 150 countries and regions.Season X can be accessed through, an exclusive online membership site that offers exciting opportunities for players to participate. The WPT, a well-known organization in the United States, also provides a lucky draw poker club and brand licensing scheme for players from 35 states in the US. Founded in 2002 and listed on NASDAQ, they have become the world's largest television poker programming production company through market development and marketing efforts. In China, "upgrade" is regarded as a recreational activity or hobby, but "WPT" sees it as a profitable opportunity. Currently, "WPT" is thriving in its operations with enrollment fees being a significant source of revenue along with sponsorships and other funding. On a global scale, "WPT" has established two major enterprises as its primary partners.

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