SOUTH EAST ASIA 12
MALAYSIA
Theme park opening completes revamp, to drive visitation Genting Malaysia’s long-awaited outdoor theme park is likely to open late in the fourth quarter, providing a boost to the company’s recovery prospects.
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ccording to Tushar Mohata, head of Malaysian equity research at Nomura, the park is now largely completed and the company is looking for the optimal timing to make its debut. “The constraint is when they see a critical mass that justifies the opening,” he said. “They are ready but they want to make sure there is demand for people who want to see the new attraction. End of the fourth quarter during the school holidays might be the right time to open up.” The Genting SkyWorlds attraction, which features 26 rides spread over 26 acres, was designed to be the centerpiece of a major revamp of Resorts World Genting, which began in 2013. The Genting Integrated Tourism Plan involved investment of MYR10.38 billion ($2.5 billion) to add new hotels, a casino, an indoor theme park, restaurants and retail. The park was originally conceived as a joint venture with 20th Century Fox, which pulled out saying it didn’t want its family friendly brand connected with a casino. The withdrawal resulted in a legal spat between the two companies and a redesign of the concept from Genting. The legal dispute was settled in July 2019. “The theme park was the missing part of the puzzle and that is about to open. They can market this resort as a complete offering again,” said Mohata, who sees the Malaysian expansion as a major catalyst for the growth of the company. Resorts World Genting, in the Genting Highlands, reopened at the end of September after a four-month Covid lockdown. Shortly thereafter, the government also relaxed rules on interstate travel allowing Malaysians to move more freely around the country. Mohata expects strong pent up demand to help the group’s earnings in the final quarter after a “washout” in September due to the closure and a slow June quarter. “Resorts World Genting has always been a
Asia Gaming Briefings | November 2021
very local casino, so once this pent up demand returns there should be a good jump,” he said, pointing out that after reopening last year the company reported about MYR1 billion in revenue and MYR400 million in EBITDA. “We don’t expect that good because it’s a
more gradual ramp up but it should be good,” he said in a recent interview. While Malaysia’s Muslim population is forbidden from gambling, other sectors of the community, such as the sizeable number of Chinese are free to enter the casinos. According
