KUALA LUMPUR: Genting Bhd remains cautious on its near-term prospects in the leisure and hospitality industry but says it is in a good position to capitalise on the eventual recovery in the sector.
“While the regional gaming market has continued to register nascent recovery, significant challenges will persist in the coming year, given the negative impact of the pandemic on the sector, ” said chairman and chief executive Tan Sri Lim Kok Thay in its Financial Year 2020 Annual Report.
In spite of this, the group will move forward with its planned expansions for its respective business units.
“These unprecedented challenges will not deter us from carrying out the group’s long-term business strategies that will also help to spur the local economies.
“These strategies include completing the ongoing development projects in 2021, ” Lim said.
These projects include the new Resorts World Las Vegas, the new outdoor theme park at Resorts World Genting, the new 400-room hotel at Resorts World Casino New York City and the first phase of new attractions under a mega expansion plan at Resorts World Sentosa.
Genting SkyWorlds, Genting’s new outdoor theme park at Genting Highlands, will also open by the middle of this year.
The theme park will feature international class movie-based attractions and feature, among others, movies from 20th Century Studios, the group said.
Genting expects the theme park to receive a good reception once it opens.
“The theme park is a key growth initiative for Genting Malaysia Bhd in Malaysia, ” the group said.
Lim said the near-term recovery momentum of the operations at Resorts World Genting will be impacted following the temporary closure of the resort from Jan 22,2021 to the middle of February.
“Nevertheless, with recalibrated operating structure and re-engineered processes in place, Genting Malaysia is in a good position to manage these unprecedented challenges and capitalise on the eventual recovery of the leisure and hospitality sector, ” he said.
He noted that the outlook for the global tourism, leisure and hospitality industries remain highly uncertain on the prolonged pandemic situation.
“If the current Covid-19 situation prolongs, we will re-assess the scheduled timelines to meet the challenges ahead, ” he said.
Genting will continue to take proactive measures to optimise productivity and improve operational efficiency to manage the extremely challenging operating environment at the moment.
“We will also assess any good business opportunities that may arise from this new normal that could complement existing businesses or provide new growth for the group, ” Lim said.
Genting Malaysia chairman Tan Sri Alwi Jantan said that the group has managed to weather some unprecedented challenges over the years.
“We have continuously adapted, innovated and implemented strategic measures to evolve our business to meet the demands of a dynamic business landscape, ” Alwi said.