The bright lights of Singapore's two integrated resorts are taking the shine off some local nightspots, causing patronage to fall by as much as 30 per cent as customers flock to the casinos.

Sales are also taking a hit as their clientele pick blackjack over beer though the impact is felt more on weekdays than on weekends, according to the operators that BT spoke to.

Top One KTV, for instance, has seen patronage drop 20-30 per cent in an average week since the IRs opened, which has translated to a 10-15 per cent decrease in sales.

Weekdays, in general, have become quieter, says manager Terrence Seet.

'Most of our customers prefer to go to the IRs on weekdays because it is not as crowded,' Mr Seet adds.

The novelty of the casinos, coupled with the various entertainment options, also makes the IRs an attractive venue for gamblers and non-gamblers alike.

 '(The integrated resorts) are new and that will draw attention,' says Geraldine Tay, marketing manager for St James Holdings.

Since the two IRs opened their doors, the stream of customers at St James has dropped by about 10 per cent though the nightspot is now seeing a pick-up in the crowds again.

For Harry's, the opening of Marina Bay Sands (MBS) has had more of an impact on the group than Resorts World Sentosa (RWS), since Harry's operates some 15 outlets in the Central Business District alone.

According to its head of sales and marketing, Brian Mastels, a large pool of its regular weekday customers tend to come in later, or not at all.

Sales across its 35 outlets islandwide fell in the first quarter and the beginning of the second quarter. 'However, sales have started to pick up at the end of the second quarter,' says Mr Mastels, adding that he does not expect sales to be impacted in the long term.

According to Varen Liew, outlet manager at Brewerkz Indoor Stadium, total customer count across its six outlets has dipped 5-10 per cent, although overall sales have held up.

Not all the restaurants have opened in the IRs, so people still grab a bite before heading to the casinos, he reckons.

Cafe Del Mar at Sentosa has been seeing a steady drop in both sales and crowds for the past six months with the opening of RWS and the accompanying revision in the island's entry and parking charges.

 'I think most of the bars and clubs along Siloso Beach have been experiencing falling sales,' says A Lee, operating manager at Cafe Del Mar, adding that RWS has everything under one roof.

Genting's integrated resort has the lure of additional attractions, such as the Universal Studios theme park, retail stores as well as bars and restaurants in its four operational hotels. Similarly, in its first phase of opening, MBS opened some food and beverage outlets and dozens of stores in its retail space, in addition to its casino.

When RWS and MBS are fully operational, the plethora of entertainment options -ranging from Broadway musicals to museums - could mean stiffer competition for the local night scene.

In a recent interview with Bloomberg, Las Vegas Sands Corp chief operating officer Michael Leven said that 550,000 people visited the MBS casino in the first 25 days of May, of which a third were Singaporeans.

The US$5.5 billion integrated resort is likely to generate some US$330 million in earnings this year (before interest, tax, depreciation and amortisation), according to analyst estimates compiled by Bloomberg.

RWS declined to reveal average visitor figures for its casino when contacted by BT.

Still, the one saving grace so far is that customers are more than likely to spend their cash when they have a run of good luck at the casinos.

'If customers win at the casino, they are more willing to spend at the KTV. So in a way, the IRs have brought back some business as well,' Mr Seet says.

Source: The Business Times © Singapore Press Holdings Ltd. Reprinted with permission.