A 40-Year Ban on Casinos Lifted
Singapore Boosts its MICE with the ultimate target of Integrated Resorts

To extend its national competitiveness, Singapore finally lifted its 40 year-old ban on casinos. In the face of global competition, the country is developing two large major Integrated Resorts, which include casinos, to enhance its national economic value. How will the MICE industry, on which Singapore puts so much weight, now look with this casino turmoil? What business opportunities will Singapore's new major investors bring to the MICE industry?

For a country with such a small territory, business once seemed to be the only option for establishing a viable country. After independence, the Singapore government was fully aware that national competitiveness is far more important than national ideology. It recognized its advantages and disadvantages on the Asian and even the global stage. Accordingly, the title of the best country for business, the best city for convention and conference and the best location for world-wide financial transactions have become Singapore's slogans for promoting its attraction to the world.

IR's Clear Orientation and Consistent Target

From the point of view of MICE (Meeting, Incentive, Convention, Exhibition), Singapore has, in recent years, dazzlingly performed in terms of being a convention and conference location. However, its tourism value is far less than neighboring countries such as Thailand and Malaysia. Pei-ru Yang, assistant professor in the Department of Architecture of Singapore National University, told the Press that Singapore may even lose its leading position in the countries of South Asia and Indo-China if it cannot attract the international tourist to return.

Lee Hsien Loong, prime minister of Singapore, mentioned in his address to congress in 2005 that, from 1998 to 2002, Singapore's market share in Asia-Pacific tourism dropped from 8 to 5 percent and the average time tourists are staying declined from 4 to 3 days. These facts are, without a doubt, a warning signal to deal with global competition. Therefore Singapore, by keeping national competition as a supreme concept, finally approved of casino business, which had been prohibited for 40 years.

From strict prohibition to approval, Singapore's decision of legalizing gambling shows, on one hand, its determination to follow world trends and to promote its local industry. On the other, it has been an emotional struggle. As a result, when the government first established the IRs (Integrated Resort), it formed clear regulations for gaming.

The Integrated Resort offers only 5 percent of its business space for a casino. Only 30 to 40 percent of the profit may come from the casino and the rest from art performances, conventions, dining outlets, shopping and other commercial activities. Compared with traditional casinos, an IR may not rely for its income entirely on casino users, but on all kinds of entertainment other than gambling, thus attracting guests to stay longer.

Additionally, local Singaporeans will be charged entrance fee and tax if they wish to enter the IR. Such strict regulations aim at preventing a negative image.