| SINGAPORE : Downtown hotels are seeing the awarding of Singapore's first integrated resort project to Sands of Las Vegas as an opportunity rather than as competition.
Gerhard Kropp is overseeing a makeover at his hotel in Orchard Road.
He wants to get the Meritus Mandarin shipshape for the upcoming IMF and World Bank annual meetings in September.
But setting his sights further, three years down the road, he doesn't see opening of the Sands at Marina Bay as too much of a challenge.
Said Mr Kropp, general manager, Meritus Mandarin, "I believe with the target STB is setting to more than double the present visitors to Singapore, I think 2,500 rooms will not pose a threat to our existing inventory here in Singapore."
In fact, hotel rates are rising.
In the last year or so they jumped between 15 and 18 percent and will perhaps rise another 6 to 7 percent next year.
Rather than flooding the market, industry players expect occupancy and room rates at downtown hotels to go even higher when Sands opens in 2009, thanks to a spill-over effect.
Said Mr Kropp, "It will be beneficial to everybody. I believe not every visitor to Singapore will now stay at Sands ... They may opt to stay with us at Orchard, and go once in a while to the casino and gamble and look at the facilities there and come back, spend money at our hotel and Orchard Road."
Shops and F&B outlets around town are also looking forward to higher traffic.
The conventions and exhibition space planned for Sands at Marina Bay may be vast, catering to 4,000 to 5,000 at a time.
Even so, Sands won't be able to cater to everyone -- and this is where the other existing hotels in the downtown area come in. - CNA /ct
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