That the US operator was given a 30-year concession to operate the Marina Bay integrated resort (IR) at an investment cost of US$3.24bil (S$5bil) has dispersed some of the gloom among Singaporeans about their future.

For years now, the state has been cracking its head to expand its economic activities that will let it compete with China, India and others.

The establishment of the two resorts, for a total cost of US$5bil to US$6bil is, of course, not a magic solution but it will have a big positive impact on Singapore’s future. In fact, it will turn a new chapter of its history.

The surprise selection of Sands for Marina Bay over two front-runners, MGM-Mirage and Harrah’s (with strong government partners) has also shed some light on Singapore’s entry into the casino business.

Government leaders say it had won on the strength of its MICE (meetings, incentives, conventions and exhibitions) businesses, which fit into the state’s ambition to be a convention centre.

When the government lifted the 40-year ban on casinos last year, it raised a hue and cry from among conservative Singaporeans, including the mainstream religions.

But as planning got serious, the criticism had withered into a grudging sense of acceptance. However, people are still querying the rationale for two large casinos and not just one.

The picture has become clearer. It bears out the government’s explanation that while gaming is a major factor, the non-casino proportion will be substantial and will contribute to the city’s overall national objectives as well.

For example, Marina Bay resort will probably derive much of its revenue from conventions and exhibitions.

It will also fit into the concept of the reclaimed Marina Bay waterfront, eventually becoming Singapore’s second business centre – near the current Shenton Way.

The second project on Sentosa Island, which is expected to be decided at the end of the year, will be somewhat different, experts say.

Unlike Marina Bay’s business concept, the Sentosa resort will likely place more emphasis on family entertainment, which some analysts say favours Malaysia’s Genting group’s proposal.

Prime Minister Lee Hsien Loong said Singapore could no longer afford to maintain his father’s ban on casino gambling because its tourism industry was facing a serious slowdown.

Singaporeans were also losing billions of dollars gambling in casinos abroad every year. Besides, Japan and Thailand and possibly China are likely to join the flourishing industry.

Citing statistics of declining numbers of tourists at the time, Lee said, “We cannot stand still. The whole region is on the move. If we don’t change, where will we be in 20 years?”

Upon their completion from the year 2009, the two casino projects will double the number of tourists here to 17 million, triple tourism revenue and create some 100,000 direct and indirect jobs.

They will open a new avenue for tapping the growing affluence of Asian travellers, especially as China’s middle class swells.

Marina Bay will be the world’s most expensive casino resort, a massive “district” on 51 acres with features that include a giant waterfall and a museum designed by Massachusetts-based architect Moshe.

Sands’ 110,000 sq m convention space (the size of two national stadiums) will provide half the 200,000 sq m that the authorities had planned to build at Marina Bay by 2015.

Genting

The Malaysian consortium – Genting Int and cruise operator, Star Cruises, affiliates of Malaysia’s US$4.5bil Genting Bhd – was one of the three unsuccessful bidders for the Marina Bay site.

It is too early to write anybody off, but analysts say it now stands a strong chance of winning the Sentosa licence.

Its proposal for the 49-hectare island site is the most compelling given its exclusive tie-up with theme parks giant Universal Studios, CIMB-GK Goh analyst Steven Tan told Reuters.

The government has said that it wants this resort to have family-friendly leisure attractions to draw tourists to the region. Besides, it is facing less intense competition. Bids are due on Oct 10.

What is sparking Singaporean interest is the prospect of attractive job opportunities. For a decade, meaningful employment has been in decline compared to the golden economic era.

People are excitedly talking of croupier jobs starting from US$1700 a month. Sands said it expected to hire some 10,000 workers, 75% locally, when its project is completed.

A new croupier training school, the International Club Games Training Centre (ICGTC), will start its certificate course at Turf City in Bukit Timah next month.

Other educational institutions will be rolling out some 20 new related courses in tourism and hospitality management this year, double last year’s number.

One of these is a 12-month hospitality management masters programme – a joint effort by Cornell-Nanyang Institute and Nanyang Technological University. It will offer students the chance to spend six months training in New York and another six months in Singapore.

While the big casino operators are optimistically fighting for a piece of the Singapore action, some economists are warning of a possible over-crowded casino industry. “Where are the players coming from?” is the question.

That probably explains why Singapore is betting on an overall long-term business-plus-entertainment concept.

Diluted by a larger non-casino proportion, immediate profits may be lower here than if it chooses to follow Macao as a pure gambling play, but its long-term future may be a lot more stable – and acceptable to critics.

o Seah Chiang Nee is a veteran journalist and editor of the information website littlespeck.com

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