Kerzner, MGM Competing for Major Resort Project

SINGAPORE-Resort developers Kerzner International and MGM Mirage will submit competing conceptual plans to the Singapore Tourism Board for development of an integrated entertainment resort complex on either Sentosa Island or Marina Bay. The plans were in response to last month’s request for concepts by the STB. CapitaLand, one of the largest listed property companies in Asia, is a 40% partner in both proposals. It is partnering with Kerzner on a concept plan for Sentosa Island and with MGM Mirage on a concept plan for Marina Bay. If the STB likes one or both of the concepts, its next step would be to issue a request for proposals. Neither Kerzner nor MGM has provided any detail regarding their concept proposals, which the STB wants submitted by the end of February. Generally, the integrated resort would include hotels, convention facilities, entertainment shows, theme attractions, luxury retail and fine dining. The resort may or may not include a casino, the government has said. An MGM spokesperson tells GlobeSt.com that the company was aware that CapitaLand was working with Kerzner on a competing proposal and is “comfortable” with the situation. He also suggested that both projects may eventually be built. A Kerzner representative did not respond to a request for comment. Earlier this month, the STB announced its goal to double visitor arrivals 17 million, triple tourism receipts to 30 billion Singapore dollars ($18.3 billion US) and create 100,000 new jobs to the tourism industry by 2015. The STB will use a $2-billion Singapore dollars Tourism Development Fund to help realize its goal. In 2004, the Singapore tourism industry performed well, exceeding STB’s targets for both tourism receipts and visitor arrivals. Tourism generated an estimated 9.6 billion Singapore dollars in tourism revenue in 2004, exceeding STB’s target of 8.7 billion for the year. Singapore also welcomed a record 8.3 million visitors in 2004, which was 36% higher than 2003 and 10% higher than its goal for the year of 7.6 million visitors.