While the gaming and casino industry has been hit exceptionally hard throughout this whole global health crisis ordeal, it appears the Genting Group is focused on its long term standing rather than the current predicament. One of Asia’s leading multinational companies, Genting Group is involved in various businesses within the region ranging from casinos, hotel and entertainment to plantations and the energy industry.
The hospitality giant, whilst struggling to overcome its losses worth hundreds of millions in dollars in the previous year, remains keen on pushing through with its expansion plans in both Singapore and Malaysia. A second phase for Resorts World Sentosa, Singapore has finally seen a tentative schedule despite being accompanied by delays due to the pandemic. A new exciting theme park is also set to open later this year in Malaysia’s Resorts World Genting, indirectly boosting tourism for the country.
Phase 2 of Resorts World Sentosa, Singapore planned for 2022
The expansion of Resorts World Sentosa was initially revealed to be “delivered in phases with new experiences opening every year from 2020 to a projected completion around 2025”, as stated by Genting Singapore previously. While the development was not exempt from the unavoidable delays brought about by the pandemic, construction is set to start in early 2022 as a result of “disruption across the supply chain and labour force.”
The project which has a capital expenditure budget of SGD 4.5 billion (~USD 3.38 billion), is backed by the country’s two casino resort operators, the other being Las Vegas Sands Corp. John DeCree, Analyst at Union Gaming Securities LLC promoter of Resorts World Sentosa noted in a memo that Genting Singapore had “reaffirmed its commitment to the scope of RWS 2.0.” He further highlighted that “the company is also looking at major design changes to cater to the health/safety requirements as well as the changing market dynamic as it relates to VIP.”
With the Genting Group’s net profit significantly down 89.9% from last year, the renowned company is not expecting a full recovery anytime soon. Realistically speaking, the group is anticipating this year to “look very similar to second-half 2020” in terms of demand and visitor volume.
“The outlook for the global tourism, leisure and hospitality industries remain highly uncertain. While the regional gaming market has continued to register some level of recovery, significant challenges will persist in the coming year given the negative impact of the pandemic on the sector,” Genting said in a statement earlier this week.
“Looking ahead, even as the world begins to gradually recover with countries opening up their economies, it is evident that international travel is unlikely to return to pre-COVID levels anytime soon,” it further added.
Recording its worst financial performance since the opening of its Singapore integrated resort in 2010, the Genting Group is focused on working towards its vision regardless of the multiple struggles it is currently facing.
“We remain committed to our vision of creating a world-class IR destination that is uniquely positioned and sustainable, and anchored on strong local partnerships. We will continue to engage the relevant stakeholders in this process.”
Malaysia’s Resorts World Genting to launch new theme park in 2Q21
Genting SkyWorlds, Genting Malaysia’s latest project is a new theme park located 6,000 feet above sea level at Genting Highlands. The construction of the USD 800 million establishment is on its tail end with finishing touches being carried out with a target opening of the second quarter of this year.
Head of business operations and strategies, Lee Thiam Kit said in a virtual meeting, “We’re committed to this park and we will see to it that it opens, barring unforeseen circumstances.”
“Going forward, when we open, there will be jobs created and the park will add economic activity directly and indirectly as well as a boost to tourism in Malaysia and Pahang.”
The outdoor theme park boasts of nine movie-inspired worlds sprawled across 26 acres of land, accompanied by 26 rides and attractions to start. Genting SkyWorlds is also set to feature 20th Century Studios brands after reaching a settlement with Twenty-First Century Fox Inc. and Walt Disney Co. in 2019. Having fully resolved their prior disputes, Genting SkyWorlds was granted a license to use certain Fox franchises.
Head of theme parks Gregory Pearn eagerly commented on the soon-to-open attraction saying, “We do have some (20th Century Studios) IPs in the park such as Rio and Ice Age which are fantastic IPs to have. We are also complementing these with our own homegrown IPs and in the long-term, the plan is to introduce other IPs to the park as well.”
“Having Genting SkyWorlds as the hero of the product gives us the chance to be more creative with the proposition and allows us more freedom with what we want to introduce at a later stage.”
While the original target opening was scheduled for the third quarter of last year, delays were likewise met as the country battled the widespread novel coronavirus. The Group’s arm in Malaysia saw a similar decline with full year revenue down a whopping 47%, yet keeps a positive outlook for longer-term recovery of the local economy.
“In Malaysia, the introduction of a second Movement Control Order in various states since Jan 22 will impact the group’s business following the temporary closure of Resorts World Genting (RWG), Resorts World Langkawi and Resorts World Kijal during this period. RWG has resumed operations since Feb 16 while RW Langkawi and RW Kijal recommenced business on Feb 19”, revealed Genting Malaysia in a statement.
As the launch of Genting SkyWorlds draws nearer, many are eagerly anticipating the theme park’s public opening within the next couple of months. Regardless of the hurdles and additional precautions brought about by the current crisis, the theme park remains to be seen as a key growth initiative for the Group in Malaysia.