[Newsphopick=Kingsley Lim] Marina Bay Sands (MBS), an integrated resort located along Marina Bay in Singapore, has reported an earnings before interest, tax, depreciation and amortisation (EBITDA) loss of US$113 million in the second quarter of this year. This loss is attributable to the lockdown, also known as the “circuit breaker”, which the Singapore government implemented to curb the spread of the coronavirus pandemic.
According to the parent company, Las Vegas Sands on Wednesday 22 July, the reported numbers for the second quarter of 2020 pale in comparison to the comparable quarter in the prior year. In the same quarter last year, the company earned US$346 million in EBITDA.
As a result of the COVID-19 pandemic, Las Vegas Sands CEO said that there will likely be delays in the MBS expansion project. Mr Adelson said "We remain excited to be a part of Singapore's continued growth as a leading leisure and business tourism destination. We continue to make progress on the MBS expansion.”
Adelson added that "We believe that delays in the timing of the project are likely to occur. These delays are principally related to the impact of the pandemic and we will provide additional updates in the future as conditions are continuing to evolve.”
"In advance of the expansion, we will also continue to reinvest in MBS to enhance the customer experience and the tourism appeal of the resort." These announcements from MBS comes as the entire tourism industry in Singapore is reeling from the effects of the coronavirus pandemic. According to official statistics, Singapore received only 880 visitors in May 2020. This was a 99.9 per cent fall in visitors to the country from the year-ago period.
Recently, Resorts World Sentosa (RWS), another integrated resort in Singapore, announced that it will be retrenching its employees and it is working with several agencies to help place them in other jobs.
For the second quarter of 2020, MBS announced that it saw its revenue decline to US$23 million from US$688 million in the year-ago period. By the end of 2019, the company reported that it had 10,000 employees on record. However, when the “circuit breaker” measures kicked in, the resort had to close on the April 7, causing an inevitable decline in revenues.
Since reopening in Phase 2, MBS has reported that it is in compliance with safe distancing measures. Retailers and restaurants at the resort now have a reduced customer capacity, in light of these measures.
The casino will reopen on July 1, with reduced capacities. Guests who have been served stay-home notices are housed in Towers 2 and 3 while other guests are housed in Tower 1, to prevent the spread of infections.
Before COVID-19 hit the Singapore economy, the two integrated resorts in Singapore, RWS and MBS, had announced plans to expand its non-game offerings. The MBS expansion project was estimated to cost US$3.3 billion – this will include 1000 hotel rooms, a performance arena that can hold 15,000 people, a sky roof with a swimming pool and a restaurant.