IRs on track to open in 2009, 2010

Source : Straits Times - 8 Aug 2008

Marina Bay Sands, Resorts World say construction’s smooth and hiring to start

TWO years after the contracts for the integrated resorts (IRs) were awarded, both Marina Bay Sands (MBS) and Resorts World at Sentosa (RWS) say they are on track to open in December next year and the following year, respectively.

Hiring for the 10,000 staff that each resort will need is expected to start next year.

Rising construction costs, however, have caused a blip in their plans, with both resorts having to revise their budgets.

Soaring prices of building materials have seen MBS’ cost rising from an estimated US$3.6 billion (S$4.9 billion) to US$4.5 billion.

And RWS, initially projected to cost $5.2 billion, bumped up its budget last November to $6 billion.

Both IRs told The Straits Times that the budgets were not likely to swell further.

MBS general manager George Tanasijevich said: ‘Most of the construction contracts have been given out already, so costs of materials have already been factored in.’

Both IRs report that construction is going at full steam.

Mr Tanasijevich, asked in an interview yesterday on why the construction at Marina Bay seemed to be going more slowly than the work at RWS, retorted: ‘Well, 40 per cent of our project actually lies deep underground.’

Workers at Marina Bay have had to struggle with building on land reclaimed with marine clay, but with the foundations having been laid, the buildings are beginning to ’see light’ now.

‘From now on, we should expect to see the construction moving very, very rapidly.’

By next June, the three ironic 55-storey hotel blocks should be completed, so the resort should be ready to open its doors in December next year.

RWS’ head of communications Krist Boo said the resort’s superstructures will be completed by the first or second quarter of next year. By year end, the centrepiece Universal Studios attraction will be completed and go into its testing phase. The resort will open on schedule by the first quarter of 2010.

Next month, RWS’ construction team will work round the clock to complete the underground buildings; work will be ramped up in the building of the superstructures.

Ms Boo said: ‘Never in Singapore has anything been built at such speed.’

In hiring, both IRs are facing a major headache in filling their vacancies - each needs a range of workers from bell-hops to cashiers, theatre performers to animal trainers.

Mr Tanasijevich and Ms Boo said they expect to start hiring the bulk of the workers from the middle of next year. Each IR is expected to create some 30,000 jobs for the Singapore economy.

For jobs that did not previously exist here, like amusement park operators, Ms Boo said 60 key staff members will be sent to Universal Studios in Orlando, Florida, for a six-month training stint.

The IRs have also been working hard at securing new retail brands, readying their permanent in-house entertainment and courting the Meetings, Incentive Travel, Conventions and Exhibitions (Mice) market.

MBS has secured about 195 tenants for its 300 shops, where annual rents will run to US$453 per sq ft; it is also talking to 30 exhibition organisers and 40 conference organisers to bring major events here.

RWS has sold its meeting facilities worldwide, Ms Boo said, and is also in talks with some organisers to bring shows here.

Both camps are positive their projects will be a success.

As Mr Tanasijevich put it: ‘Our optimism has done nothing but rise since we started.’