Monday, September 26, 2005

Current Cost of Integrated Casinos (Resorts) to hit S$5 billion
See here for Channel New Asia's take on the issue.

"...property valuers expect competitive price tender for the site and construction costs to add up to as much as S$5 billion..."

"...This will make the Marina Bayfront integrated resort one of the most expensive integrated resorts with gaming component in the world..."

As I see it, the eventual cost of the project will hit 9, 10 billion SGD if the bidding process drags on. Besides, the bidders might need to make space for provisions, expecially miscellaneous licensing and building permits (especially so since the Marina site will envelope the Marina Bay Waterfront and will no doubt be liable to the stringent judiciary requirements of buildings being consructed next to water catchment areas.

Underneath all the glam, potential operators should also carefully consider the hidden costs involved in the construction and running of the Integrated Casinos (Resorts). Mark my words, 10 billion is not too far off.

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