Integrated Resort

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An Integrated Resort (IR) is a Singaporean euphemism for mixed-use developments containing casinos. To date, IR licenses have been awarded to Marina Bay Sands and Resorts World Sentosa. These are planned to be completed in 2009, and would be the first casinos in the country.^[1]

1 History
2 Public debates
3 Bidding process
- 3.1 Marina Bay
- 3.2 Sentosa
4 References
5 See also
6 External links

[edit] History

During a parliament session on 18 April 2005, Lee Hsien Loong, the prime minister of Singapore, announced the cabinet's decision to develop two integrated resorts in Marina South and Sentosa.

The government claims the aim of the project is to boost the Singapore's tourism industry which is facing intense competition from other destinations around the region, particularly from nearby Bangkok and Hong Kong, which has since also considered legalization of casinos in the wake of initiatives in Singapore. Even closer to home, Malaysia long had a legal casino cum theme park on Genting Highlands, which proved popular with Singaporean tourists. The IRs in Singapore are expected to create about 35,000 jobs directly and indirectly. In addition to the casinos, the IRs will have other amenities including hotels, restaurants, shopping and convention centers, theaters, museums and theme parks. The industry is expected to invest five billion Singapore dollars in Integrated Resorts.

[edit] Public debates

The plan to build the Integrated Resorts was subject to considerable debates among Singaporeans. Several groups, such as those belonging to the Muslim and Christian communities as well as social workers, openly expressed their disapproval to the casinos. Concerns were raised about the negative social impact of casino gambling, citing worries that the casinos could encourage more gambling and increase the risk of compulsive gambling. Activist groups argued that a casino could also lead to undesirable activities often associated with gambling, including money laundering, loan sharks or even organised crime.

Lee acknowledged the downsides of having Integrated Resorts and the concerns expressed by the public. He promised that there would be safeguards to limit the social impact of casino gambling. He stated there would be restrictions in the admission of the local population into the casinos, for example, family members of a patron of the casino may block him or her from entering and gambling. Lee stated that an exorbitant entrance fee of SGD 100 per entry or SGD 2000 every year would be imposed, and a system of exclusions. In addition, the casinos would not be allowed to extend credit to the local population

Lee, who has been prime minister since August 2004, took significant political risk when he made the decision, with some of his cabinet members even against the plan. Nonetheless, Lee decided to go ahead with the decision; he stated:

"As prime minister, I carry the ultimate responsibility for the decision". [1]

The issue of Integrated Resorts could possibly be brought up when Lee, for the first time, will lead the People's Action Party (PAP) to contest the next general elections to be held by the end of 2006. The six month consultative period gave the opportunity for many sections of the population to voice their opposition to the casinos, including a petition that attracted tens of thousands of signatures. When Lee approved the proposal after such widespread criticism, the opposition took the opportunity to state that he had overruled consensus.

The debate over Integrated Resorts in Singapore also brought to attention to the public a discussion on the methods and ways government policies should be deliberated in Singapore, and whether they were effective or needed reform. This is especially because the political climate is dominated by the PAP. Low Thia Khiang, the leader of the opposition Workers' Party, warned in a parliament session:

" ... The Government sought the opinion of the people but it does not go along with the opinion of the people and it has now made a unilateral decision. Eventually, will it turn out to be a blessing or a curse to our people? We have to wait and see. ... Under the current situation, where a party is dominant and the civil society is very weak, the people cannot sway the Government's decision on such a matter that concerns the fate of the people. If the Government's judgment is wrong, it would lead the nation and our people on to the 'river of no return', where the cost would be very real and very heavy." [2]

[edit] Bidding process

[edit] Marina Bay

In December 2004, the government of Singapore called for a request-for-concept (RFC), inviting industry players to submit concept proposals for the Integrated Resorts. A total of 19 bids were submitted during the RFC.

Four companies/consortiums placed their formal bids for the Marina Bay site, including

While Harrah's and MGM were considered forerunners, Las Vegas Sands emerged as the surprise winner when it was announced on 26 May 2006. The Marina Bay Sands is billed as a centrepiece of the Marina Bay landscape when completed in 2009. Las Vegas Sands had committed the highest development investment of S$3.85 billion. With the land price and associated capital cost, its total investment will exceed S$5 billion. It would also be one of the most expensive casinos in the world. The design, by Moshe Safdie consists of three large shells containing conference halls and other business venues, three large hotel towers linked on their top floors by a sweeping sky garden, and a centerpiece museum which juts out onto the bay.

"Sands has submitted the best overall proposal that meets our economic tourism objective. In particular, the proposal will significantly strengthen Singapore's position as a leading MICE destination and the proposal also possesses unique design elements that will provide a memorable image for Marina Bay." Singapore Deputy Prime Minister S. Jayakumar

[edit] Sentosa

Three consortiums submitted their proposals by the due date on 10 October 2006, including:

Eighth Wonder with Publishing and Broadcasting Limited, Melco International Development Limited, Isle of Capri Casinos Inc. (Design by Peter Marino)
Genting International with Star Cruises, Universal Studios (Design by Michael Graves)
Kerzner International with Capitaland (Design by Frank Gehry)

A fourth contender, a Harrah's Entertainment and Keppel Land consortium pulled out from the race four days before the deadline [3].

The bids will be reviewed by a ministerial committee and a tender evaluation committee. The ministerial committee is headed by Deputy Prime Minister Prof S Jayakumar and includes Tharman Shanmugaratnam, S Iswaran, Mah Bow Tan, Lim Hng Kiang, Dr Vivian Balakrishnan and Raymond Lim as its members [4].

Results were announced on 8th December 2006. The winning conortium was Genting International and Star Cruises with their bid for the Resorts World Sentosa.

"Genting submitted the most compelling proposal overall that best meets our economic and tourism objectives. In particular, the proposal reflects our vision for the Sentosa IR as a large-scale, family resort with its host of world-class family leisure attractions and other strong offerings. The attractions will position Sentosa and draw a significant number of new and repeat visitors," DPM Prof S.Jayakumar.