I am going up Genting Highlands again in September 2019. Will have to look after the kids as my wife intends to watch a concert of her idol. I think within 2019, as at end July, I have been up Genting Highlands 7 times. That’s once every month. Average spending per trip should be around RM600 – RM800. (excluding the casino wins and losses but including pairs of shoes in Genting Premium Outlet).
In the last trip, my kids enjoyed the indoor theme park tremendously and played till the friendly Genting staff told us that it’s already 10pm and they are closing. It was RM60 for unlimited rides for that one whole day. I think they did 15 rides each? Haha. Anyway, I think I will be up at least the same number of times in 2020. Genting Malaysia Bhd has SETTLED a legal dispute with Twentieth Century Fox. Now, we get to see some Fox related cartoon characters inside Genting’s new outdoor theme park.
Article in thesundaily.my In the legal dispute settlement, Genting Malaysia Bhd gets to use certain Fox intellectual properties (IP). PublicInvest Research has revised upwards its visitor growth assumption and it said, “As such, we raise our FY20-FY21 earnings by 5-11% after factoring in higher visitor arrival of 5-6%.” It says that it is positive with the resolution but it says that the restated agreement only allowed use of certain Fox IP. The theme park will most probably be opened without Fox brand name.
Hong Leong Investment Bank (HLIB) Research expressed its optimism and said, “We believe excitement will return as this will still be the first theme park in Asia with Fox’s IP, and is likely to increase footprint.” It added, “We note that the outdoor theme park is near completion and reckon it may be able to launch sometime in 2020.” It also said this about the visitor numbers. “Currently, we have penciled 26.6 million visitors for FY20. Holding all else constant, our sensitivity analysis shows that for every 10% increase in visitors (from our assumption), will increase earnings before interest, tax, depreciation and amortisation (ebitda) by about 6.5% and earnings by about 8%.” Full article of their assessments in thesundaily.my here
Very briefly, everything’s positive for Genting Highlands with this settlement. Everyone living within an hour from Genting Highlands with kids will now have a place which they could visit at least once per year? There are around 8 million people in Greater Kuala Lumpur. Let’s assume only 30% will be a potential visitor every year and we already have 2.4 million visitors. We have yet to include those outside the state. Plus all the foreign tourists too which I always see up there in Genting Highlands too.
With more visitors meant the need for more accommodation. Genting Malaysia should have around 7,000 rooms. Assuming it’s fully booked 4 days every week, that’s 7,000 rooms x 2 (pax to a room) x 52 weeks x 4 days = 2.9 million visitors. I wonder where the rest are staying even if we assume out of the 26.6 million visitors (as per HLIB’s estimation), only 30% are staying a night which is already 8 million people. Perhaps a property up there? Sorry, I am not a real estate agent yeah. Do google for it. Happy visiting and perhaps buying.
<Featured Image is courtesy of Stock Photos from faak>
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