Social and Economic Impacts of Integrated Resorts in Singapore

(Source: http://libguides.nl.sg/content.php?pid=293555&sid=2410306)

Actual Economic Impact brought about by the IRs
When the IRs opened in 2010, annual tourist arrivals hit a record high
of 11.6 million in 2010, with record visitor arrivals for eleven
consecutive months from January to November 2010 (Channel News Asia,
2010). Currently, the MBS casino sees an average of 25,000 visitors
daily, with a third comprising of locals (Thousands flock to gamble at
Integrated Resorts - Channel News Asia, 3 Feb 2011).

Singapore raked in S$18.8 billion in tourism receipts (TR) in 2010,
the highest in ten years. This was a 49% increase from 2009, exceeding
previous forecasts of S$17.5-18.5 billion (Singapore's 2010 tourism
receipts hit an 10-year high - ChannelNewsAsia, 10 Feb 2011). TR for
Quarter Two 2011 was estimated at $5 billion, registering an 18 per
cent year-on-year growth (Tourism receipts for Q2 jump 18% to hit $5b
- Straits Times, 25 Oct 2011). These TRs mainly comprised of
expenditure on shopping, dining, admission fees and accomodation. This
growth is attributed to an increase in tourist expenditure, especially
visitors from Indonesia, India and China, as well as an increase in
international visitors due to positive economic sentiment and the
opening of the two IRs. Overall, the two IRs contributed approximately
$3.7 billion to Singapore's GDP in the first nine months of 2010, or
1.7 per cent, towards Singapore's nominal gross domestic product
(GDP). (IRs injected higher than expected $3.7b; Contribution puts
them well on track to hit $5.4b target by 2015 - Straits Times, 18 Feb
2011). The hotel industry was also predicted to see brisk business
room revenue, which is set to register a 10-12% growth year-on-year
while average hotel occupancy rate is expected to hover around 80-85%
in 2011 (Singapore's services sector set to shine in 2011).

In conclusion, the IRs have contributed greatly to Singapore's
economic growth by attracting tourists, causing tourists arrival
figures to increase significantly. Other sectors of the economy, in
particular the service and hotel sectors, have also enjoyed the
spillover effect from the IR boom. By February 2012, 60,000 jobs had
been created in the IRs and across the broader economy, contributing 1
to 1.5 per cent to Singapore's gross domestic product (Govt reviewing
IR rules - Straits Times, 27 February 2012).

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