The effects of the coronavirus pandemic will be felt for a long time, mainly because the virus has still not been controlled nearly a year after its first appearance.
The casino industry around the world is struggling, and there is no shortage of gambling establishments that have already been forced to close.
While the overall prognosis indicates that the industry will resume growth within a few years, some countries are suffering more than others.
Singapore is one of them and, according to the country’s tourism authority, major casinos may need to rethink their short-term strategies.
Singapore Tourism Board CEO Keith Tan spoke with Bloomberg TV for an interview to share his opinion on how the country can recover from COVID-19.
During that conversation, he admitted that it was “inevitable” that the country’s two hotel complexes, operated by Genting Singapore Lt and Marina Bay Sands Pte Ltd., would experience delays in their ongoing expansion plans.
However, he added that neither had made final decisions yet and said: “I see this as a good sign of your confidence in Singapore’s long-term tourism prospects.”
This statement is not entirely consistent with observations made recently by Sheldon Adelson, CEO of Las Vegas Sands (LVS). He said on a conference call in July that, overall, the company lost nearly $1 billion in the second quarter of the year.
As a result, he predicts that the Marina Bay Sands casino will face delays as a direct result of the impact of COVID-19 . However, he was quick to add that the long-term forecast was positive.
For casino operators, who face huge revenue declines, any possible changes to the casino’s expansion plans could come from a disruption in the construction industry and a drop in tourism, according to Tan.
In the first five months of this year, international arrivals dropped 65.7% from the same period last year, reaching just 2.66 million.
In April and May, according to the STB, only 1,000 international arrivals were registered. As a result, tourism spending dropped 39% in the first quarter of 2020 to $2.92 billion.
Spending on activities such as games, tours and other forms of entertainment fell 41% to $626.7 million in the period.
It may be a good thing, however, that the Singapore casino business is going through a crisis. This would give regulators and authorities better access to operators and their data in the face of numerous money laundering investigations.
