Korea watchful as Singapore casinos open
By Bae Ji-sook
Korea Times correspondent
SINGAPORE ― On April 27, major local newspapers were covered with photographs of the interior of a casino.
The newly open Marina Bay Sands Resort was the talk of the town for months worldwide not just here and not because of its unique architecture of three skyscrapers holding up a single boat-shaped installment but because it symbolized pragmatism cracking the morals of the country dubbed as the ``country of ethics.''
The casino has 600 gaming tables and 1,500 slot machines. The first and second floors are open to the general public while the third and the fourth floors are strictly for VIPs, who account for about 70 percent of the revenue. With all the crystal chandeliers dangling from the ceiling, the plush carpets and other fancy ornaments, the casino is opulent.
The Marina Bay Sands resort is more than a casino. It is a trendy hotel, luxurious shopping mall, with superior convention halls and other impeccable facilities.
It appeals to various demographics, from children and teenagers to couples, families and holiday makers, Val Chua, spokeswoman for the resort said.
Competition increased when the Resort World Sentosa opened a similar facility in February. Targeting holidaying families, the resort has a Universal Studio Park, five hotels and more luxury shopping malls, but the main cashbox is expected to be the casino, observers say.
The resort operator Genting Group expects more than 12 million visitors this year, said Oh Ji-eun, Korean spokeswoman for the resort.
The opening of the gambling facilities in Singapore, where even chewing gum is illegal, is perceived as the authorities' desperate measures to once more win the hearts of the tourists.
According to reports, the share of Singapore's tourism among Southeast Asian countries slid to 6 percent in 2002 from 8 percent in 1998.
The casino is a powerful draw to bring them back, industry insiders said. Kim Do-gon, spokesman of GKL, operator of the local Seven Luck Casino, says those who have visited facilities with casinos tend to stay an average of two nights more than those without similar entertainment opportunities.
Since restrictions are imposed on local residents, 93 percent of the cash gathered at the casinos are foreign currencies, insiders say.
The Singaporean authorities told its parliament that the $3.9 billion-facility could create up to $2.5 billion revenue a year, about 1 percent of its GDP. They are also expecting 17 million foreigners to visit the country by 2015.
For Singapore, it's an extravagant version of role model Macau, the special administrative region of China, which surpassed Las Vegas in revenue in 2006. The Jongno district sized city attracts 20 million visitors mainly due to its casinos.
Implications for Korea
Analysts say the opening of the casinos would hardly have an effect on Macau but is likely to have a greater impact on Korea with 16 foreigners-only casinos.
``The only advantage of Korean casinos over those in Singapore or Macau is that Seoul is closer to Beijing than those cities,'' a worker at GKL, an affiliate of the Korean Tourism Board, said.
``However, the intricacy of visa issuance is always a hindrance for them to pop in and enjoy the games whenever they want. If this regulation continues, who knows when we will lose all the good clients to them?'' he said. GKL enjoyed revenue of 488 billion won last year.
Even some casinos owned by private companies are lobbying to the government to allow Korean citizens to be admitted.
Some worry that the encouraging gambling, even for rich foreigners, isn't really a good idea. ``According to some reports, the chances of getting addicted to gambling are around 6 to 12 percent. Especially foreigners who do not have anyone to control them or care for them, could get into trouble,'' said Kim Hye-young, an employee at the Korea Prevention and Care Center for Gambling Addiction.
Professor Lee Choong-ki of KyungHee University said, ``Casinos are a double-edged sword. It could bring phenomenal economic benefits, especially increasing the inflow of foreign currency. But on the other hand, it could create serious ethical problems. Moreover, if it is involved with international market competition, picking an answer isn't easy.''
He suggested that Korea should build some resort complexes as Singapore has. ``We call it responsible gambling. People bring their families and enjoy their holiday, shopping and place some bets, but not enough to damage themselves,'' he said. ''But I haven't heard of any such project yet,'' he added.