With a combined price tag of more than billion, the two Singapore integrated resorts needed to do a land-office business if they were to provide their owners with a return on investment. And the government of Singapore was holding its breath to see if the IRs would do what was expected: substantially increase tourism to the island nation.
More than a year later, these questions have been answered. The two casinos have become the most successful in the world, with revenues that will exceed all of Las Vegas in 2011. The return on investment for the two IRs is averaging between 18 percent and 22 percent. EBITDA for 2011 should land between $2.4 billion and $2.9 billion.
And the leap of faith that Singapore exhibited by approving gaming to increase tourism has paid off handsomely.
Visitor arrivals to Singapore increased by more than 20 percent in the last year. More importantly, expenditures of those visitors ballooned by nearly 50 percent. The growth has continued to run double-digits in 2011. The nation’s economy is booming, increasing a record 14.5 percent in 2010 and up 8.3 percent in the first quarter of this year.