Genting SP

Genting SP: Mgt says it is banking on a surge in foreign visitors to boost business at its casino in the coming yrs, but highlights growth in gaming segment is unlikely to be as strong as before, esp as "novelty effect" of the casinos among locals is beginning to wear off. Notes that with the Marine Life Park oceanarium opening last mth, RWS is "not just a gaming resort" but a complete family destination. On its hospitality strategy, RWS plans to focus on top-end guests for its 6 luxury hotels with 1500 rms at Sentosa, while its upcoming 4-star 450-500 rm hotel in Jurong (to open in late 2014 or early 2015) would cater to the mass-mkt tour-and-travel segment. Highlights the group has an incentive to try and complete the Jurong hotel earlier, since the high season at the end of the yr is its busiest period and wants it ready "as fast as possible". The group identified the shortage of hotel rooms as one of the biggest challenges facing RWS currently. Its hotels at Sentosa are currently experiencing "close to 90%" occupancy. Adds that RWS would not stop at bldg just one more new hotel, given the vast potential in mass-mkt tour-and-travel sector in the coming yrs, and is also studying potential for more budget-style hotels in Iskandar Msia. Separately, GENS also highlighted the group could expand to Japan as it expected the country to pass its gaming law in the next 12-18 mths.