Singapore may consider Las Vegas-style casino within city

Wednesday, Nov. 17, 2004 | 10:56 a.m.

SUN STAFF AND WIRE REPORTS

Singapore took another step toward building a controversial casino after it invited as many as a dozen gaming operators to submit development proposals, a newspaper reported Wednesday.

The likely venture, a large-scale resort development, is set to be a sure money-spinner and add to Singapore coffers, The Straits Times said, quoting a senior government official.

Singapore, which had talked about building a casino resort on an island since March, said it's also considering the option of locating the project within the city modeled after developments in Las Vegas.

A casino in the city may "add to the buzz and color" of the city-state, the Trade Ministry said on a Web site it set up for public feedback on the development.

The government, which previously said it wants the casino resort on one of the islands south of Singapore, is pushing for more options on a development that is crucial for the island's tourism industry as rivalry grows between Asian neighbors competing for the same visitors.

"What Singapore has to consider is access for business travelers with convention center space being a leading element of the plan, and integrating the casino with other amenities," said Jonathan Galaviz, a partner at Galaviz Ong & Co. in Las Vegas, which tracks the global gaming market.

Galaviz founded the Singapore Association of Nevada with the aim of promoting trade between the two regions.

MGM Mirage, Harrah's Entertainment Inc., Caesars Entertainment Inc., Venetian owner Las Vegas Sands Inc. and Steve Wynn's casino company are among the Las Vegas entities interested in building casinos in Singapore. Bahamas-based resort operator Kerzner International Ltd. also is interested in building casinos there.

Over the past week or so, discussions about casinos in Singapore have grown from serious to very serious, Galaviz said. The government is expected to issue RFPs in the near future that will include the Sentosa site, a city site or both, he said. Las Vegas companies have had informal discussions with government officials so far, he added.

Caesars Entertainment spokesman Robert Stewart said his company is talking to potential investment partners in Singapore and consulted with the government "on what the rules and regulations ought to be."

"We've made it clear to the government that we're interested," Stewart said.

At stake is Singapore's appeal to the 7.6 million visitors it expects each year -- twice its population -- and their spending in the city-state that makes up more than 5 percent of the $91 billion economy. Rival destinations such as Thailand are considering casinos, drawing investment interest from operators such as Las Vegas Sands and Macau's Stanley Ho.

The ministry used the example of Las Vegas, a city with a population of 2 million that draws 36 million visitors each year, making it the top convention city in the U.S., it said on the Web site late yesterday. Earlier this year, the ministry sent a team to Las Vegas to study the operations of casinos in the city.

The Web site featured pictures and links of three properties -- the Atlantis in the Bahamas, which it used earlier as an example for its southern island project, as well as MGM Mirage's Bellagio and Las Vegas Sands' Venetian, both in the U.S. city known for its casinos and entertainment.

A casino resort modeled after Las Vegas would add to the attractions within the city with the project's hotels, restaurants and cultural outlets such as concert halls and museums, the ministry said on the Web site, all traits of the Venetian and Bellagio.

Galaviz estimates a Singapore casino resort would cost between $1 billion and $2 billion, with the high end of the range matching the cost for the two Las Vegas casino developments. Singapore also needs the project to boost its tourism industry, he said, forecasting visitor arrivals would double to as many as 15 million a year with the development.

"Many countries in the region are moving quickly to develop major tourist attractions and exciting tourism products," the Trade Ministry said. "We need to respond and adapt to the increasingly competitive environment or we will gradually lose out on our tourism share."

Still, the initial 700 responses received showed some opposed the casino project on concerns about social vices such as triads, drug trafficking and prostitution, which would tarnish Singapore's "clean" image, the ministry said.

Bloomberg News, the Associated Press and Sun business writer Liz Benston contributed to this report.