Genting Malaysia has doubled its planned investment to revamp facilities at its flagship Resorts World Genting property in the Genting Highlands.
The company says it will now invest RM10.38 billion ($2.46 billion), up from its original plan to spend RM5 billion on the ten-year Genting Integrated Tourism Plan.
The plan was launched in December 2013 and is designed to completely overhaul the ageing facilities at the resort, with the addition of new hotel capacity, shopping and tourism facilities. Analysts have said the plan will be the main driver for growth at Genting for the foreseeable future.
The capital investment under Phase 1 of the GITP will increase from RM4 billion to RM8.11 billion. Under this phase, the first-ever world class branded Twentieth Century Fox World theme park will see a substantial increase in investment with more “spectacular, thrilling and state-of-the-art rides than previously announced.”
Total investment in the Twentieth Century Fox World theme park is expected to exceed RM2 billion. The park had originally been scheduled to open later this year, though has been pushed back and Genting hasn’t given a revised opening date. Meanwhile the existing indoor theme park will undergo a major transformation offering a total of 18 rides from the existing nine.
Genting is targeting 30 million visitors by 2020 and says it remains optimistic about the long-term prospects for tourism in the region, despite the current uncertainties. Domestically, the tourism-related measures announced under the recalibrated 2016 Budget are expected to have a positive impact on the local tourism sector, it says.
However, the group remains cautious on the gaming market given the continuing weakness in the VIP market.
In Q4, Genting Malaysia posted an 11 percent increase in total revenue to RM2,291.9 million, as growth from its operations in the U.S. and Bahamas offset a decline in the U.K. and sluggish growth of just 4 percent in leisure and hospitality at home.
Adjusted earnings before interest, taxation, depreciation and amortisation declined by 14 percent to RM521.3 million.