S’pore casino gaming revenue to top US$2b
Advertising spending in Asia-Pac seen rising to US$108b in 2011
By AMIT ROY CHOUDHURY
REVENUE from casino gaming in Singapore could be worth as much as US$2.2 billion by 2011, just one year after both new integrated resorts have opened their doors, says a report from accountancy firm PricewaterhouseCoopers (PwC).The comprehensive 700 page report, Global Entertainment and Media Outlook 2007-2011, looks at a host of entertainment and media industries like Internet, TV distribution, casinos and other regulated gaming and advertising.Speaking to BT, Greg Unsworth, PwC’s Asia Pacific Technology Industry Leader, said casino gaming revenues in Singapore in 2001 are expected to total US$2.2 billion - S$3.4 billion at today’s exchange rate.The report notes that by 2009 when the first resort opens, casino gaming will bring in US$157 million. The income is expected to grow to US$755 million in 2010 when the second casino opens its doors.Revenues will then more than double the next year.Last year, Singapore awarded casino licences to Las Vegas Sands and Genting, the casino operator in Malaysia. ‘The Las Vegas Sands’ US$3.6-billion resort complex will feature more convention space than all the hotels in Singapore combined, with a planned opening in late 2009,’ Mr Unsworth said.
The report says the two casinos in Singapore will provide Asians with the Las Vegas experience - possibly hitting tourism growth from Asia at the original Las Vegas.
The report also notes that Asia-Pacific is the third largest - and the fastest growing - market for casinos and other regulated gaming.
The market size will increase from US$14.6 billion in 2006 to US$30.3 billion in 2011, growing at an annual rate of 15.7 per cent.
In the Asia-Pacific region, driven by strong economic growth, the entertainment and media industry will be the fastest growing in the world.
Mr Unsworth noted that spending in the region will average 9.6 per cent annual growth, the highest of any region, increasing from US$297 billion last year to US$470 billion in 2011.
This year, the market is expected to be worth US$328 billion.
In other parts of the entertainment and media industries, advertising spend in Asia-Pacific will increase from US$77 billion in 2006 to US$108 billion in 2011.
The Internet will continue to be the fastest-growing advertising medium, growing at 18.8 per cent a year, driven by increased online penetration and an expanding broadband market.
The number of Asia-Pacific households with broadband connections will increase to 243.2 million by 2011, a 20.1 per cent annual increase from 2006.
Projected growth for Singapore’s advertising market actually decreases from 4 per cent in 2008 to 2.7 per cent in 2009, before stabilising in the 3.2-3.7 per cent range for 2010-11.
‘This can be attributed to a shift in marketing focus from traditional advertising to more integrated marketing approaches that include events and sponsorships. In a small market such as Singapore, non-traditional marketing channels may, in fact, yield greater mileage for the advertiser and be more effective in generating awareness and establishing brands,’ Mr Unsworth said.
Spending related to the distribution of entertainment and media on convergent platforms (that is, convergence of the home computer, wireless handset and TV) is growing at double-digit rates and will exceed 50 per cent of global spending by 2011, the PwC official said.
‘Asia-Pacific will be the fastest-growing convergent platform region with a projected 13.5 per cent increase and double-digit growth is expected in Latin America as Internet and broadband penetration begins to gain momentum,’ he said.
‘Broadband growth is driving online advertising while the proliferation of next-generation wireless devices designed to play digital music, video games and receive TV programming is fuelling mobile distribution.’
In Asia-Pacific, spending on distribution of TV programming on mobile phones is expected to reach US$6.5 billion in 2011 from just US$26 million in 2006.
Internet advertising and access spending continues to be the fastest growing segment globally.
In this segment, Asia-Pacific - which was the second largest region in 2006, at US$59.6 billion - will also be the fastest growing with a 17.1 per cent annual increase to US$131.2 billion in 2011, the report forecast.
Access spending (that is money spent to access the Internet) will increase from US$54 billion in 2006 to US$118.1 billion in 2011.
Of overall access spending, money spent for broadband access will rise to US$101.9 billion in 2011 from US$39.4 billion in 2006.
Compared to the region, Singapore’s growth in this category will fall steadily from 38.4 per cent in 2002 to 7.4 per cent in 2006, and further to a projected 6.3 per cent in 2010.
Explaining the reason for this, Mr Unsworth said: ‘Growth rates in Internet access spending in Singapore, whilst strong, are expected to lag behind the rest of Asia-Pacific. This is due largely to the existing high Internet penetration in households, relative to Asia as a
whole.’Source: The Business Times, 22 June 2007
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