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Rws & Mbs Competitiveness

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1. Introduction

This research is about the degree of competiveness of casino between both casinos in Singapore. In 2004, the Singapore’s government had start planning and introducing plan to build casino in Singapore (Southern Shores of Singapore, 2004). Interested casino operator hence summited their proposal to win the entry to build casino in Singapore and in 2006 it was reported that Genting (Chua and Whitley, 2006) and Las Vegas Sands (Sgentrepreneurs, 2006) won the bid.

Having two casinos in Singapore we can forget about the competitiveness of both the integrated resort.

1.1 Overview of the Industry, Resort World Sentosa and Marina Bay Sands Singapore decided to build Casino in 2004 and two licenses are given out, one to the Las Vegas Sands and the other to Genting international. The Singapore integrated resort is a combination of casino and resort where it provide entertainment to all ages (Singapore Vacation and Attractions Guide, 2009).

The first integrated resort start operation in Singapore when Resort World Sentosa opened in February 14, 2010 (Hoe and Shafawi, 2010) and followed by Marina Bay Sands in June 23, 2010 (Relax ,2010).

Resort World Sentosa is a project of the Genting international where is located in Sentosa which is a popular tourist destination. Resort world sentosa had lots of facilities. Beside casino Resort World Sentosa had six hotel to chose from and the first Universal Studios theme park in South-east asia, the world’s largest Marine Life Park, Maritime Xperential Museum, Equarius Water theme park, The ESPA’s Spa Wellness, meeting and conference facilities, a grand ballroom, theatres for stage performances, shopping, dining and many other more (Singapore Vacation and Attractions Guide, 2009).

Marina Bay Sands on the other hand is a project of the world largest companies, the Las Vegas Sands corporation. It is located in the central hub of Singapore where it provide a 24-hour operating casino, three towering hotels with a rooftop Sands Sky park, an arts and sciences museum, state of the art convention halls and lastly shopping and fine dining (Singapore Vacation and Attractions Guide, 2009).

1.2 Research Topic and research Objective

In this project I will be researching on the competitiveness of Integrated Resort in Singapore and below my objective for this research.

Integrated Resort consist of two casino own by two different company one is Marina Bay Sands own by Las Vegas Sands corporation and the other is Resorts World Sentosa own by Genting Group.

My first research objective is to find out what the academic literature said about the Marina Bay Sands and Resorts World Sentosa competition level.

Second objective is to determine what type of attraction or service that Marina Bay Sands and Resorts World Sentosa build or provide help to attract customer to visit their casino.

Third objective is to show the report stating on how the casino had been performing based on their attraction, promotion, service and hotel.

1.3 Research rationale and Contribution

I chose to do a research in the competitiveness of Integrated Resort in Singapore as I am curious to find out, in a small country like Singapore and having two Integrated Resort how do Marina Bay Sands and Resorts World Sentosa compete in attracting visitor to visit their place.

Having the opportunities to research on this topic, I can learn that how competitive is the competition in the same industry is, and what are they method the organization does to attract more customers. With the result I gained from this research I would had better understanding of the industry and when I enter the society I would had knowledge of what company do to make themselves different from company of the same industry and how businesses link themselves with event going on.

With this research done it would contribute to help people who want to innovate ideas on how to make a casino attractive and what attraction can a company build to attract more customers into their casino as in this research I would be showing the differences of building different attraction in the casino can attract customer. Also in would be a summary of performance on Marina Bay Sands and Resort World Sentosa on how they had perform according to their services and facilities that they had provided since their operation.

2. Research

To complete this research, a planning is needed. A planning would give as a direction of the research. For example, to complete the research one has to plan the time and academic literature that can support and give us a clearer picture of the topic.

2.1 Overall Research Structure

At the starting point, a topic of interest has to be chosen. Hence after some thinking I decided to chose the competiveness of Resort World Sentosa and Marina Bay Sands as I am interested to find out how both of this Integrated Resort in Singapore where our population and market is small.

After I had chosen this topic I had to set the objective of the research and so I came out with three objectives I want to achieve upon completing this research. The first objective is to find out the competition level of both the Integrated Resort from the academic literature. The second objective is to see what attraction or service each resort had build to attract visitor into their place. Lastly is to see their performance according to their facilities.

At the second step, a fish bone diagram is drawn to list out the point use for the research. And the factor that I come up with that are related to the competitiveness of the Integrated Resort is Hotels, attraction, Facilities and Events.

The third phase is to search article to support the research and met with my research objective. For instance I require to search what had the Integrated Resort done to draw visitors or to search for the performance of both the Integrated Resort.

The fourth phase is to submit the proposal. To submit the proposal I required to write about the reason I chose this topic, the objective of the research, the contribution and the research methodology for the research.

Next, after completing my proposal I continued with my main research. Upon completing all my finding for this assignment I put those finding into the case of this research.

Step six, I brainstorm to list out what I am suppose to do in this research. First, I read the article I had found and list out what I need to include in the research assignment.

Last but not least, is to complete the article. To complete the Research project I had to put everything in to one piece of work and to do the referencing.

2.2 How the paper research is conducted

To do the research, I search from either the National Library and also the website online. Upon visiting the National Library I found four books that are related and support my research.

The first book I found is Casino Design, this book give an idea of what a Casino should be like and how a attractive design could help to draw visitor.

The Second book is Casino Operation Management written by Kilby Jim which state how a casino operate this give me an idea of the management of casino and hence I understand that for a Casino to perform and produce result what type of management is required.

The third book is Casino Introduction to Casino & Gaming Operations. In this book it talk about the marketing strageties of the Casino that include the 4P of marketing. With this I refer to the case in Marina Bay Sands and Resort World Sentosa.

And the fourth book is Singapore places its bets, this book talks about the situation of Singapore Casino and many idea written in this book can be abstract to discussed.

While searching online I had also found many article. I do the searching at website like yahoo and Google where the keyword to search for article are like competition of RWS and MBS, attraction of MBS/RWS.

I also do searching from UCD database search. And the website is Academic Search Complete, SAGE Journal and EBSCO Host. To search for this article I use the keyword of Casino and Casino competition.

Next I entered the website of Marina Bays Sands and Resort World Sentosa to find out what are the recently program, activity, promotion of theirs to draw visitor.

2.3 Research Limitation

To research about this article I had come to several obstacles.

First is the time of operation of both the casino. As the both the Casino had only started operating in 2010 the news on the Integrated Resort are limited. In the situation when the operation of the Casino goes longer there are more to talk about as the Casino would come up with different management, marketing and rules to operate the Casino as time changes while as the Casino had only operated for 2 years the event they had done are limited.

Second, lacking of knowledge. Before touching this research I had not much idea of what the Casino are about. Hence when I start this research there are many reading needed to prepare myself for this project so time is also
another obstacle I met as beside doing this research I also had to due with other module assignment and examination and this allow me to plan my time carefully.

3. Literature review

For any research done a list of literature review is required to support the research and for this research I had found a list of literature review that can be discussed.

3.1 Hotels

In Marina Bay Sand there is only one Hotel operating but the prices of the Hotel in Marina Bay Sand as compare to those in Resort World Sentosa are more high end.

Hotel is an factor that need to be consider when competing with another Integrated Resort as when people travel they would like to spend their night where the hotel is comfortable, affordable and easily located. Both the Marina Bay Sands and Resort World Sentosa provide totally different types of hotel to the consumer.

In Marina Bay Sand there is only one hotel available to the visitor but visitor can still chose according to their needs and prices as there are lots of rooms, suite and amenties. As compared to the hotel available in Resort World Sentosa the Marina Bay Sands hotel is more high end with the price ranging from the lowest price of $400 a night in deluxe room to about $1700 a night in the best suite. In special occasion the Hotel price would also vary like for instance during the Formula 1 racing.

While having the chance to spend a night in the Marina Bay Sands hotel the visitor would also get a chance to visit the SkyPark (Marina Bay Sands, n.d) for free and other than that the visitor could also take a walk in the Art Path where there is a collection of first-class art installation by artist like Anthony Gormley, Chongbin Zheng, James Carpenter and some other more (Marina Bay Sands, n.d).

One of the advantages of choosing the Marina Bay Sands hotel to the hotel in Resort World Sentosa would most probably due to the location of where they are located. Marina Bay Sands is located at a place which is more convient and also where the tourism spot is mostly at like for instance the Singapore River while Resort World Sentosa is less convient.

In Resort World Sentosa there had 6 different kinds of hotel to choose from. Below are the six hotels.

The six hotels include the Crockfords Tower, Hotel Michael, Hard Rock Hotel, Festive Hotel, Equarius Hotel and lastly the Beach villas. Each of this hotel had their different feature that suit different groups of people to chose from also the price range are different so visitor can chose the hotel that are affordable to them (Resort World Sentosa Singapore, 2012).

For instance Hard Rock hotel is market more to young people as the theme of the hotel is rock and roll and to the entertainment experience is rich. Also Hard Rock hotel is just doorstep away from the Universal Studio (Resort World Sentosa Singapore, n.d).

Next, there is a Beach Villas. Where guest enjoyed full privacy with a view of the beach and having their own personal butlers and transport buggies. Where as compared to the Hard Rock Hotel the Beach Villas price is above $1000 a night (Resort World Sentosa Singapore, n.d).

Thirdly, there is also the one hotel which theme is “get back to the nature” this is a hotel suitable for people who like being out in the nature. The price is set at a affordable price of below $400 a night (Resort World Sentosa Singapore, n.d).

Hence upon listing the different types of hotel offer by both the Integrated Resort we could say they target different market. For instance it is very obvious that the Resort World Sentosa seem to be presenting a more fun, adventurous and interesting environment as compared to the Marina Bay Sand which is more to a more “serious” people.

In a competition situation of the hotel factor affecting the competition level of both the resort I believe that the Resort World Sentosa might be in an upper hand as they offer more choice and can target a wider market of visitor. But this does not mean that the Resort World Sentosa would be better in the overall performance as Marina Bay Sand is more to business orientated where visitor of their casino had a deeper pocket to spend.

3.2 Attraction

Attraction is an important factor that can attract people to visit the Casino. As the Casino in Singapore not only focus on the Casino operation a good entertainment is also required to draw people of all age.

In Resort World Sentosa they had created many attraction to draw people into Sentosa. One of the highlights is the Resort World Sentosa which is the South-east Asia first Univeral Studio theme park. In Singapore, many out door activities project had failed or had not achieve a successful result like for example the Escape theme park located in the downtown east which has closed down in November 2011, the Tang Dynasty and Haw Par Villa. One of the factors of failure of the out door activities might be due to the hot weather in Singapore. While to make the Universal Studio a successful project Resort World Sentosa had come up with design to make it a success.

According to Cunha (2010, pp.110-128), it said that Genting Singapore’s resort sentosa Universal Studio theme park is indeed a compelling attraction. To adjust to the hot weather in Singapore the Resort World Sentosa has build an eco-cooler system to lower the temperature within the park to lower a few degrees.

Also by building this one an only Universal Studio in South-east Asia it can attract tourist who are low-budget who cannot afford the expense or time to travel all the way to the original theme park in the United State. Next, the attractiveness of the Singapore Universal Studio is also the rides and attraction that is specially created to adapted the market here. One of the examples is the Transformer Rides that are the world first build.

In additional to the Universal Studio theme park the Resort World Sentosa also had Marine Life Park Oceanarium, a waterpark with rides, a maritime museum, a general health and fitness spa, a concentration of upscale shopping outlet, eateries for fine dining, area for clubbing, a half kilometer strip for festive walk and last but not least a meeting facilities for 12,000 delegates (Cunha, 2010).

To compete with the wide varieties of Resort World Sentosa attraction the Marina Bay Sands also had a number of attractions to draw visitor to visit theirs place.

The attraction of the Marina Bay Sands include a four storey Casino, high end retail shops and fine restaurants, three 55 storey hotel tower blocks which comprises 2,600 rooms, a SkyPark, a 110,390 square metre of convention space spanning five level that is able to accommodate 52,000 delegate and a lotus shaped artscience museum (Cunha, 2010).

The highlight of the Marina Bay Sands might be on the Southeast Asia’s Largest convention and exhibition centre and also the Asia’s largest sky park.

As Las Vegas Sands Corp. emphasizes much on MICE which refer to meeting, incentives, conference and exhibition it draws organizer to organize their talk or exhibition here (Cunha, 2010). One of the most recent exhibitions are the Harry Potter: The Exhibition and the Andy Warhol (Marina Bay Sands, 2012). By holding this exhibition in Singapore it would also draw visitor internationally who are interested in this exhibit but not available in their country. In additional when Marina Bay Sands hold convention or conference which would draw professional that are most probably individuals with relatively deep pockets.

Also as Marina Bay Sands are said to be more for business oriented people who visit are more deep pocket hence they will be able to spend more in the high end retail shop and the fine dining. But according to Cunha (2010,pp.112) there are two side view.

It was said that Marina Bay Sands might turn out to be more successful in relation to Sentosa as of it location which is located near the Singapore business and financial district and also to the upcoming financial centre while Sentosa on the other hand is located in an island which is less easy to get to and that the big oceanarium and theme park would not be profitable. But a casino industry observer who had an opposite view suggested that the Resort World Sentosa market as a family friendly integrated resort as compared to Marina Bay Sands which is more business focused would struggle financially and that result to cost over run.

In my point of view I believe that both Marina Bay Sands and Resort World Sentosa has a different market that could attract their own group of visitor. Indeed Marina Bay Sands is located more conveniently but to those who like the attraction of the Resort World Sentosa would not be bother by the location as they just want to visit the attraction that draw them to the place while on the other hand people who are interested in the exhibition that the Marina Bay Sands hold would like wise chose to visit Marina Bay Sands. Hence in my point of view, I believe that the attraction that the Integrated Resort provided is the very important factor to the decision of visitor when they decide to go which Integrated Resort.

3.2 Events

Marina Bay Sands and Resort World Sentosa both organize events and this is part of their method to draw visitor. To organize the event they had to attract the organizer to choose them hence they required to complete in their proposal first. With an attractive event being held in their Integrated Resort first it would draw people to their place and when people are at the Integrated Resort people might chose to do more spending that include shopping, playing in the Casino and also spending a night at the hotel.

In the recent period Marina Bay Sands had hold event ranging from art, science, history and photography workshop while for performing arts there are performance like Sands fruit festival, Annie, Drum Tao, Slava’s snowshow, Hi-5 Holiday, Nanta, Avenue Q, Louis Hoover’s Salute to Sinatra, The Nutcracker on Ice and The Bootleg Beatles (Marina Bay Sands, 2012). This are the types of event that draw people into the Integrated resort but the number of the crowd might not be as big as the event mention in the next paragraph

In the past the Marina Bay Sands had also hold an annual conference organize by the inter-pacific bar association, the UFI congress and Industrial Fabrics Association International Expo Asia 2011 trade show. Base on holding this event the Marina Bay Sands had draw a huge number of MICE participant (Marshall Cavendish Business Information, 2009).

While in July, 2012 the Marina Bay Sands had organize The Singapore International Jewellery Show 2012 (Diva, 2012) again with this type of convention would draw MICE participant into the Integrated Resort where the participant had deep pocket and hence do much spending in the Integrated Resort by playing in the Casino, doing shopping of luxury product in the high end shop and spending a night in Marina Bay Sands hotel (Cunha, 2010).

In additional, the Marina Bay Sands also take advantage of the Formula 1 racing event to attract fans of the Formula 1 who had not obtain the ticket to the Formula 1 race as by staying in the Marina Bay Sands’ hotel the guest would be able to see the race going on (Kolesnikov, 2010).

While in comparison the Resort World Sentosa had lesser event lined up. The recent event is the magic shows that is perform by the famous Taiwanese magician Lu Chen (Resort World Sentosa Singapore, 2012) and the past event include charity show, award ceremony and world gourmet summit (World Gourmet Summit 2012, 2012).

As mention before in this research, the location of both the Integrated Resort is an important issue when it comes to event like conferences and convention. As we know that Marina Bay Sands location is more in upper hand while Resort World Sentosa is more in disadvantage situation hence in the shoe of organizer Marina Bay Sands would be a more prefer choice to hold the event. Hence when more events are being hold in Marina Bay Sands it will be higher in the competition level.

3.4 Performance of Both the Integrated Resort

By compare the performance of both the Integrated Resort, Marina Bay Sands had performed better in achieving more profit than Resort World Sentosa.

In 2011, the operating profit of Resort World Sentosa is $1.67 billion while Marina Bay Sands operating profit is $1.93 billion. According to Mr. Michael Gore who is an independent gaming consultant he say that “Marina Bay Sands has a better location hence it should be doing more than just edging Resort World Sands out marginally but it has set a new benchmark for operating profit”. Indeed like mention and proven by the other academic literature which also noted that Marina Bay Sands would perform better due to it location (The Straits Times, 2012).

Other than the Operating profit of both the casino the hotel occupancy rate could also be use as a comparision as more guest mean more spending in playing in the casino and also in shopping and dining. In 2011 the average rate of the Resort World Sentosa is 86 percent that is about 1500 hotel rooms while Marina Bay Sands average rate is 94 percent that is about 2,561 rooms.

Mr.David Ling, chairman of hotel consultancy HVS China and South-east Asia say that Marina Bay Sands has done extremely well and better than the industry average point of 86 percent and Marina Bay Sands had really benefited by focusing on corporate and MICE clientele. While on the other hand Resort World Sentosa had meet the average as the attraction draw hotel guest and more choices of hotel could attract wider group of consumer (The Straits Times, 2012)..

Next, by comparing the MICE events. In 2011 the Marina Bay Sands had attracted 1.1 million participant by holding 2,740 events like for instance the Cruise shipping Asia 2011 and the World Orchid Conference while Resort World Sentosa had attracted 1 million participant with over 4,000 event that includes Asian Attraction Expo 2011 and many more (The Straits Times, 2012)..

Fourth, the attraction. The Universal Studio Singapore had indeed play a part in the performance of the Resort World Sentosa as Mr. Robert Khoo the chief executive of National Association of Travel Agents Singapore said that the travel agents are reporting brisk sales of the Universal Studio Singapore packages (The Straits Times, 2012).

4.1 Conclusion

Upon discussing the factor that affect the competition level of both the resort it is important that both the Casino continue to bring in more attraction, event and improving the other factor that could draw in visitor to keep both of the competition level in both the Casino competitive.

4.2 Implication

I believe that both Marina Bay Sands and Resort World Sentosa had much more attractive ideas and future plan to implement on as they only had operate two years.

I believe that for Marina Bay Sands to do better they could pretty much continue to use their advantage over Resort World Sentosa which is their location. The areas in Marina Bay Sands had much tourist attraction like the Singapore’s flyer, the Singapore’s river and several museum are also located nearby hence I believe that Marina Bay Sands could bundle up what they had to offer to tourist. Like for example they can provide a day tour guide service to guest who chose to stay in Marina Bay Sands that are in free and easy situation.

While for Resort World Sentosa they could do more in their attraction to draw more crowd into their Integrated Resort.

4.3 Further Research opportunities

As there are word and time constraint in this research there are several factor I had not touch on and can be use as further research opportunities.

First is the food and beverage service provided in both the Integrated resort. This is one of the factors that could affect the competitiveness of both the resort that was not mention in this research. To attract foreign visitor it would be best when they know that by visiting this restaurant they could have the best local specialty cusine served by top chef. So for the further research opportunities one could evaluate what had both the integrated resort done in this factor to help them increase competitiveness.

Second, is the marketing of the integrated resort. The future researcher could use the marketing 4P theory to discussed. For example the price of Marina Bay Sands is higher which brought in people who are more affordable to spend hence as there is more spending it resulted to higher profit. While as the place of Resort World Sentosa is less advantage as compare to Marina Bay Sands it resulted in lesser visitor.


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