Genting had recently indicated that it may spend RM200m to build a theme park and hotel in southern Johor to compliment its flagship high-end retail outlet in southern Johor based on the Chelsea Premium outlet concept. Earlier, the Genting group via its 54.7% subsidiary, Genting Plantations and US listed Simon property group, had formed a 50:50 JV called Genting Chelsea Sdn Bhd to invest in and operate Premium Outlet centres in Malaysia. The relatively small initial investment sum of RM200m for the theme park and hotel vs Genting Highlands’ annual maintenance CAPEX of RM300m p.a alone, suggests that scope, scale and diversity of the attractions of this proposed venture is unlikely to pose any competitive risk to RWS. In fact, the proposed investment could be seen as a complementary to RWS by possibly expanding the captive tourism pool in Southern Johor for RWS to tap on.
Emerging Markets in the Digital Age
2 days ago