For the first time since Singapore legalized commercial casinos in 2012, gaming is no longer the top driver of tourist spending. Visitors to the island nation are now spending more in malls than at the gaming tables.
According to the Singapore Tourism Board, tourists spent over S$1.5 billion (US$1.05 billion) on retail shopping between April and June 2016—a 65% jump from the same period a year earlier. Shopping accounted for 25% of all tourism receipts, surpassing accommodation (S$1 billion) and “sightseeing, entertainment, and gaming,” which dropped 11% to about S$760 million.
Chinese visitors led the spending spree, with 1.4 million arrivals in the first half of the year. Despite having only two casinos—Marina Bay Sands and Resorts World Sentosa—Singapore remains the world’s third-largest casino market, behind Macau and Las Vegas.
Changing Tourist Demographics
Singapore welcomed 8.2 million visitors in the first six months of 2016, up 11% year-on-year. But while overall arrivals rose, casino operators are seeing fewer high rollers and more middle-class travelers.
“This news is not good at all,” said Bloomberg Intelligence analyst Deborah Aitken, noting that many new visitors are part of overland tours that prioritize budget-friendly shopping over premium gaming experiences.
The trend adds to the challenges faced by Asian casino operators, who have already been affected by Beijing’s efforts to curb capital outflows and limit ATM withdrawals in Macau.
Regional Competition Intensifies
Macau’s gaming revenue plunged by more than US$16 billion in 2015 compared to 2013, largely due to China’s crackdown on junket operations catering to VIP gamblers. As a result, casino companies are actively seeking new markets to fill the void.
Japan is now seen as the next major frontier for gaming expansion. Global operators—including Las Vegas Sands, Wynn Resorts, and MGM—are eager to invest if casino legalization moves forward.
Prime Minister Shinzo Abe’s goal of attracting 20 million tourists annually by 2020, coinciding with the Tokyo Olympics, could make Japan the next big player in the Asian gaming landscape.
Explore the best online betting site Singapore with Octabet betting news. Start winning today! Register now!
