Harrah's and Keppel Land Scrap Casino Resort Plan in Singapore

Strategic Insights -

Harrah's Entertainment, the world's largest casino operator, and Keppel Land have pulled out of a joint proposal to build and operate a casino resort on Singapore's Sentosa Island. This leaves three bidders, including Kerzner International, Genting of Malaysia, and Eighth Wonder, competing for the project. The move comes as Singapore aims to double its tourist arrivals to 17 million by 2015.

Key Takeaways:

  • Harrah's Entertainment and Keppel Land have withdrawn their joint proposal to build a casino resort on Sentosa Island, citing difficulties in delivering a project of the desired scale.
  • The decision leaves Kerzner International, Genting of Malaysia, and Eighth Wonder as the remaining bidders for the project.
  • Singapore aims to double its tourist arrivals to 17 million by 2015, with the second casino resort expected to play a key role in achieving this goal.
  • The first casino resort site was awarded to Las Vegas Sands in May, with the company committing to invest more than $3 billion in Singapore.
  • Merrill Lynch estimates that the Sentosa casino resort island will attract $2 billion in investments from various sources.
  • Harrah's Entertainment is separately reviewing a $15.1 billion takeover offer from Apollo Management and Texas Pacific Group.
  • The proposed casino resort on Sentosa Island is expected to be a significant contributor to Singapore's tourism industry, with tourists being attracted to the island's resort facilities.

Statistics:

  • Singapore aims to double its tourist arrivals to 17 million by 2015.
  • Tourists in Singapore stay an average of three days, compared to four days in 1991.
  • Tourists in Hong Kong stay an average of four days, while those in London stay an average of five days.
  • Tourists in New York stay an average of almost a week.

Sources:

  • Harrah's Entertainment and Keppel Land joint statement (no date)
  • Las Vegas Sands press release (May 2005)
  • Merrill Lynch report (no date)
  • Singapore government tourism figures (1991)
  • Hong Kong tourist board figures (no date)
  • London tourist board figures (no date)
  • New York tourist board figures (no date)