We conducted a site visit to Genting Highlands recently, and had a view of the construction progress for the Genting Integrated Tourism Plan (GITP) projects and new products the Group has rolled out in the gaming segment. Separately, The Miami Herald reported that construction of the new pier at Bimini island has been completed and the Bimini Superfast cruise ship will begin docking there from September 18 onwards. Also, bidders for the four New York upstate casino licenses presented their proposals to the Gaming Commission‟s site selection committee this week, and the winning bids are expected to be awarded by the end of this year.

Targeting 500 rooms to be ready by end of year. From our site visit, we saw that the superstructure of the 1300-room First World Hotel extension has been completed (Figure 1), and only pending architectural and internal works to be done. We understand that the Group targets to have 500 rooms ready by the end of this year, and that construction progress is currently on schedule. Construction of the retail mall adjacent to the outdoor theme park is also underway, with the superstructure already visible (Figure 2). Meanwhile, parts of First World Plaza and the indoor theme park have been closed for refurbishment, leaving a bare minimum of rides available. We believe this will continue to affect visitor numbers for the rest of the year, although the Group is compensating with promotions of other entertainment programmes such as Ice Age Adventure, Sesame Street Live and other performances.

Genting Club to attract younger generation. Launched in 2013, the Genting Club is targeted at premium players between the age of 20-40 with its hip, modern design and exclusivity. The club features a 360 degrees bar with live performances nightly, an open concept restaurant serving a variety of gourmet cuisines, rare whiskies and wines at the LTITUDE Bar & Lounge and a gaming area, all accessible to members only. We understand that Genting Club currently has c.1800 members, and the Group intends to keep membership numbers below 2000 to maintain its exclusivity.

New products to rejuvenate gaming experience. We visited the Hollywood Casino, Circus Palace and Monte Carlo casinos where, despite it being a weekday morning, almost all tables were open and there was a decent buzz of activity, although slot machine areas were relatively quiet. We also saw new electronic table games (ETGs) which allow multiple games to be played simultaneously on one screen, as well as the introductory tablet gaming whereby ETGs are played on tablets instead of conventional monitors.

Source: PublicInvest Research - 12 Sep 2014