Wednesday, October 21, 2009

Business Times: Sentosa theme park ticket sales put at $315m a year

October 21, 2009
Sentosa theme park ticket sales put at $315m a year
Universal Studios aims to draw 4.5m visitors; 20 rides to open next year

AT around S$70 per entry to Universal Studios Singapore (USS), Genting
Singapore, which invested more than S$1 billion in the theme park could reap
around S$315 million a year in ticket sales alone.

Speaking at a news conference yesterday, Douglas Trueblood, general manager
(sales & marketing) for Universal Parks and Resorts, said the target is to
attract 4.5 million visitors a year to the theme park at Resorts World at
Sentosa (RWS), which is owned by Genting Singapore.

Assuming USS sells 4.5 million tickets at S$70 apiece, ticket sales could hit
S$315 million.

Mr Trueblood did not reveal ticket prices, but Genting Singapore chairman and
CEO Lim Kok Thay has said they will be lower than those at other Universal
Studios theme parks.

Earlier estimates by analysts put the entry price at around S$80, compared with
about US$70 in the US and 5,800 yen in Japan.

Analysts at Morgan Stanley Research (Asia-Pacific) expect entry prices to USS to
be even lower at around S$70.

In a recent Morgan Stanley Research report, it was also estimated that USS could
register total revenue of S$388 million for 2010, S$491 million for 2011 and
S$545 million for 2012. This includes revenue from merchandising and F&B.

Interestingly, Morgan Stanley Research said Genting Singapore can offer cheaper
entry tickets because of the lower construction cost of USS at about US$1
billion, which it said is about half the cost of Universal Studios Japan.

Morgan Stanley Research noted that no details have been made public on the USS
franchise fee, but said it is likely that RWS will have to pay an upfront fee as
well as a share of gross profit to Universal Studios once the theme park is

Giving an update on USS which is in the final stages of construction, Mr
Trueblood said that of the park's 24 rides, 20 will open next year, with 18 of
them original or adapted for Singapore.

Universal Parks & Resorts chairman and CEO Tom Williams said: 'Universal Studios
Singapore will be a unique experience and family destination with many new
rides, shows and themes that can't be found at other Universal Studios parks.'

USS will consist of seven themed zones that surround a man-made lagoon. The
zones are: The Lost World; Ancient Egypt; Sci-Fi City; New York; Hollywood;
Madagascar; and Far Far Away. Rides including the Jurassic Park Rapids
Adventure, WaterWorld and Revenge of the Mummy will be located within these

Mr Trueblood revealed that a Transformers attraction will open in 2011 and other
new attractions will be added in turn. 'Over the years, we will evolve,' he

Team Marshe
Martin Koh/ Sherry Tang
93833992/ 98444400

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