The tourism sector - which analysts estimate to contribute 5 to 8 per cent of the economy - is one key beneficiary of the two new integrated resorts. with one million tourist arrivals in July, the eight consecutive month of record tourist arrivals. -- ST PHOTO: ALPHONSUS CHERN
SINGAPORE'S gaming industry might still be in its infancy stage but its impact has already been felt keenly in driving the economic recovery here.
The tourism sector - which analysts estimate to contribute 5 to 8 per cent of the economy - is one key beneficiary of the two new integrated resorts, with one million tourist arrivals in July, the eighth consecutive month of record tourist arrivals.
This growth has had positive spillover effects in related sectors such as hotels and restaurants and the retail industry.
However, it is not known exactly how much the two IRs have added to Singapore's GDP although their contributions are captured under the other services category, which has seen a "sharp growth" of 12.9 per cent year-on-year in the second quarter.
Mr Ravi Menon, Permanent Secretary for the Ministry of Trade and Industry said on Tuesday that as Singapore did not have a active gaming industry until recently, the exact figures were not known.
'We are not sure if we want to necessarily reflect that as a separate item but we are within out national accounts to see how we can better reflect this in some other way,' he added.
Mr Menon said that it was unlikely that gaming revenue would be reflected as a separate category since it was too small on its own, with only two players in the market. Instead, it could be recorded with some other 'meaningful related activities', although that would take some time to be reviewed, he said.
Confidentiality was also an issue with an industry with only two players - Marina Bay Sands and Resorts World Sentosa - since specifiying gaming revenue would mean that companies might have to divulge possibly sensitive information.
Las Vegas Sands, the owner of Marina Bay Sands, said last month that the integrated resort turned in a strong performance, generating US$94 million (S$127 million) in earnings before interest, taxes, depreciation and amortisation (EBITDA) in its first 65 days of operation. In June, Resorts World Sentosa also said that it was on track to meeting its target of 13 million visitors in its first year of full operations.
