Genting Singapore has indicated that the reopening of Singapore’s borders to select international travelers is unlikely to significantly boost business at Resorts World Sentosa (RWS) in the near term.
The company made the statement during the release of its Q3 2021 results on Tuesday. RWS posted revenue of SG$251.5 million (US$186.8 million), reflecting a 16% year-on-year and 9% quarter-on-quarter decline. Gaming revenue dropped by 14% from the previous quarter to SG$194.7 million (US$144.6 million).
Adjusted EBITDA also declined sharply—falling 31% to SG$76.1 million—largely due to stricter health and safety protocols implemented in response to rising COVID-19 cases.
Vaccinated Travel Lanes Offer Long-Term Promise
Singapore launched its Vaccinated Travel Lanes (VTL) initiative this month, enabling fully vaccinated travelers from 12 countries—including the US, UK, Australia, Canada, and several EU nations—to enter the country without quarantine.
While Genting Singapore described the VTL program as a “significant milestone” and expressed optimism for a gradual recovery, it does not expect a major uptick in foreign visitation to RWS just yet. The company acknowledged that while there may be a slight increase in overseas visitors, outbound travel by locals could offset these gains.
The easing of travel restrictions is a step toward recovery, and more measures are expected to be lifted by the end of the month. However, the company made no mention of the recently announced resumption of air travel between Singapore and Malaysia starting November 29.
Industry analysts believe that the reopening of land borders with Malaysia—where a significant portion of Singapore’s mass-market casino patrons originate—would have a greater impact. Malaysian tourists account for approximately 25% of Singapore’s mass-market gross gaming revenue.
Growth Amid Missed Opportunities
Despite the challenges, Genting Singapore reported a 12% quarter-on-quarter increase in non-gaming revenue, rising to SG$37.4 million. This growth comes after a disappointing end to the company’s bid to develop an integrated resort in Yokohama, Japan.
Genting had been a leading contender for the project, but the effort was derailed when Yokohama’s newly elected mayor, Dr. Takeharu Yamanaka, ended the city’s pursuit of a casino due to his anti-gambling stance.
Still, Genting Singapore remains on stable footing. Industry analysts continue to express confidence in its long-term recovery in both Singapore and Malaysia.
The company’s parent, Genting Berhad, also saw a lift from the opening of Resorts World Las Vegas, which has helped offset losses incurred during the pandemic. The U.S. property contributed significantly, reducing the group’s COVID-related losses by approximately US$209.8 million.
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