Genting Considers Investing In Thailand and UAE Resorts

UAE

Genting Group, the Malaysian conglomerate, says that the company is now considering possible new frontiers, actively exploring opportunities to expand its footprint in Thailand and the United Arab Emirates (UAE).

According to the minutes of Genting’s Annual General Meeting, the company’s Chairman, Lim Kok Thay, has expressed a keen interest in pursuing an integrated resort opportunity in the UAE. Leveraging the group’s expertise in non-gaming offerings, Lim Kok Thay stated that Genting would be “happy to work on an IR development in the Middle East.”

However, the Chairman also noted that an international tender for a casino-only development in the UAE is unlikely, as the country’s focus seems to be on integrated resorts that offer a diverse range of amenities beyond just gaming. This aligns with Genting’s own philosophy of creating multifaceted destinations that cater to the evolving preferences of modern travelers.

Genting’s interest also extends to the Thai market, where the company is closely monitoring the developments surrounding the legalization of gaming and the potential for integrated resort projects. The Chairman indicated that Genting, as a Singaporean company with extensive IR experience, is well-positioned to pursue any IR project bids that may arise in Thailand.

However, the company is taking a cautious approach, recognizing the need for crucial details to be finalized before making a decision. Lim Kok Thay emphasized that factors such as the specific locations for potential IR developments and the regulations around local residents’ access to gambling activities will be crucial in determining Genting’s next steps in Thailand.

While exploring new frontiers, Genting remains focused on strengthening its presence in its home market of Singapore. The group has announced the Resorts World Sentosa 2.0 (RWS 2.0) expansion project, which is set to significantly enhance the resort’s offerings.

The RWS 2.0 project has seen an increase in the expected investment, from the initial SG$4.5 billion (USD $3.34 billion) to SG$6.8 billion (USD $5 billion), due to rising labor and material costs. The expansion is expected to commence construction on the waterfront building before the end of this year, with various components of the integrated resort progressively opening until around 2029/2030.

A key aspect of the RWS 2.0 expansion is Genting’s focus on strengthening its non-gaming offerings, in line with Singapore’s strategy to become an event-driven tourist destination. The Chairman emphasized that a significant portion of the investment should not be viewed as casino expansion, but rather as an expansion of the resort’s diverse amenities and experiences.

This shift in focus aligns with Genting’s broader strategy to reduce its reliance on the gaming business and diversify its portfolio. The company’s ongoing developments at Resorts World Sentosa, such as the Minion Land at the Universal Studios Singapore theme park and the Singapore Oceanarium, are examples of this diversification approach.

As Genting considers potential foreign ventures, the company is mindful of the need to adhere to stringent regulatory standards. The Chairman emphasized that any foreign partners would need to meet the same level of probity expected by Singapore’s regulators, ensuring that Genting’s decision-making process on such ventures is subject to thorough scrutiny and review.

This commitment to upholding high standards of governance and compliance is a key aspect of Genting’s expansion strategy, as the company seeks to maintain its reputation as a responsible and trustworthy operator in the global hospitality and entertainment industry.

Genting’s leadership is also closely monitoring the recovery of visitor numbers at its Resorts World Sentosa property in Singapore. The company expects that this year, the number of visitors will recover to or even surpass pre-COVID levels, indicating a promising rebound in the industry.

India was the largest source market for Resorts World Sentosa before the pandemic, followed by China, Indonesia, Malaysia, and the Philippines. As the global travel landscape continues to evolve, Genting will need to adapt its marketing and operational strategies to cater to the shifting preferences and behaviours of these key source markets.