Genting Singapore, not yet seeing full recovery from the pandemic, is careful to stay focused on refreshing its existing property, so as to attract more higher-spending visitors, and put any overseas expansion thoughts on the backburner.

At the moment, the resort is seeing recovery at 60%–65% that of pre-pandemic levels, says CEO Tan Hee Teck, speaking at the company’s annual general meeting (AGM) on April 19.

He attributes that to the “inconsistent” resumption of scheduled flights between Singapore and the traditional big markets, despite Singapore being all but fully open to international travel.

Specifically, flights between Singapore and China are at a mere one-third of pre-pandemic levels. Around 75% of Resorts World Sentosa’s (RWS) visitors are from overseas, of which those from China form a big proportion. “We hope these flights will come back by end of the year,” says Tan.

Meanwhile, Genting Singapore is busy putting in place a multi-year rejuvenation plan to upgrade its properties and refresh some of its attractions. “We must reposition ourselves by catering to the wealthier market segment of visitors. We have to transform ourselves to be a better product,” says Tan.

Genting Singapore’s efforts along these lines include hosting the upcoming LIV golf tournament, known to offer the “richest” purse. A slew of new attractions, such as Minion Land within the Universal Studios Singapore (USS) and Singapore Oceanarium, are in the pipeline, as are refurbished facilities, such as the Forum, the key retail area, which will see high-end luxury boutiques setting up shop — a departure from the squarely family-focused positioning now. “We have a strong management team, constantly innovating our products to reposition ourselves for the more affluent market,” says Tan.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/tourism/singapore-among-top-destinations-china-gears-golden-week-holiday?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Singapore among top destinations as China gears up for Golden Week holiday</a>

Relative to the other integrated resort (IR), Marina Bay Sands, RWS’ positioning has traditionally been viewed as more mass-market and family-oriented, anchored by its key attraction, the USS.

Hardly any AGM can close without shareholders asking for more dividends. For FY2022, Genting Singapore plans to pay a final dividend of two cents, which will bring the full-year payout to three cents. The planned payout for FY2022 compares to just one cent paid for FY2021, when the company was still struggling with the pandemic.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/news/tourism/singapore-sees-chinese-visitors-30-60-pre-pandemic-level?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Singapore sees Chinese visitors at 30% - 60% of pre-pandemic level</a>

The higher payout, of course, is also in line with improved earnings of $340 million — 85% higher versus FY2021, on a 62% increase in revenue to $1.73 billion. When asked by a shareholder if the dividend for FY2022 could be higher, Tan points out that the total dividend to be paid for FY2022 will be $362.2 million, which is more than 100% of the year’s earnings.

Tan acknowledges that the company has healthy cash and equivalent of some $3.47 billion and that with the recovery, cash is being generated consistently. However, a recession may be coming. “We have to be prepared for the worst; having the cash holdings as a buffer is important,” he says.

Furthermore, as part of a 2018 agreement to enjoy an extended exclusivity period, both IRs have committed to spend $4.5 billion each to upgrade and refresh their properties. “This $4.5 billion has to be funded from somewhere,” says Tan.

In previous years, Genting Singapore’s cash resources were said to be husbanded for the company’s bid to operate a casino resort in Yokohama. However, after a long-drawn process involving multiple twists and turns, the move was spiked in late 2021 after the local government changed.

Citing recent media reports, other Japanese cities, namely Osaka and Nagasaki, are keen to have their own casinos, and Genting Singapore shareholders wanted to know if the company has retained its interest in the Japan market.

For the moment, Japan is a “non-issue” for Genting Singapore, says executive chairman Lim Kok Thay. Citing his experience driving the Yokohama bid, Lim notes the recent developments but warns of the long-drawn process where plenty of uncertainties remain, on matters such as taxation rates to be levied by the different levels of the government. “We are staying out at the moment,” says Lim.

Similarly, there have been reports Thailand is keen to have its own casinos modelled somewhat after the two IRs here. Lim notes that there is no formal process laid down yet, and that furthermore, the country is heading to the polls next month and therefore, such major projects will be up in the air. “So, it is not at all clear,” says Lim.

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