Sentosa Case - SIS Experience

SMU-13-0014AX
This case was written by Professor Jason Woodard and Kevin Sproule at the Singapore Management University. The
case was prepared for the APEX Business-IT Global Case Challenge 2013 and to provide material for class discussion.
The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may
have disguised certain names and other identifying information to protect confidentiality.

Copyright 201314, Singapore Management University Version: 2014-01-16 (abridged)

SENTOSA: ASIAS FAVOURITE PLAYGROUND

Esther Wong could hardly believe it was already May 2013. She was only weeks into her new
role as deputy director of solutions technology at Sentosa, Singapores popular tourist island,
but it seemed like a years worth of challenges had landed on her desk all at once. On this
particular Tuesday, the most pressing was a request from her new boss, David Goh, to draft a
crucial piece of his upcoming presentation to Sentosas board of directors.

After another season of record attendance, Sentosas board was asking, What next? With
inflows of foreign tourists reaching new heights, board members expressed pride that nearly
one in two of these tourists visited Sentosa. But their pride was tempered with concern that
growth in this segment might level off as the range of world-class attractions offered by the
regions highly competitive tourism industry continued to expand. They had asked Sentosas
management to develop a plan to boost attendance by locals (Singapore residents), a segment
whose growth potential remained abundantly clear.

The addition of new attractionsmost notably Resorts World Sentosa, which opened in 2010
and brought with it a Universal Studios theme park and a new casinohad pushed island
attendance from just over 5 million in 2004 to 19 million in 2011. The fraction of locals had
stayed fairly consistent at 5060% of total visitors (refer to Exhibit 1 for annual attendance).
The markets for local and foreign guests were very different, however. Foreign tourists would
often buy tickets as part of a package or stay on one of the islands many hotels, whereas locals
tended to buy tickets for specific attractions and spend less than a full day on the island.

While Singapore residents made an impressive 1.8 visits to the island per year on average,
1

Goh wanted a plan to increase the number of repeat visits by local guests and bolster their
spending on the island. He asked Wong to focus specifically on the Sentosa Islander program,
which was designed to increase guest loyalty by bundling unlimited admission with discounts
at attractions around the island. With a membership of only 92,000 and a high annual turnover
rate, he felt that the program was performing below its potential.

Local visitors frequently complained that Sentosa was expensive and difficult to navigate.
Sentosas management had made a variety of improvements to address these concerns and were
working on a number of new initiatives, but these plans would take time to come to fruition.
Having just moved to the business side of Sentosas management from a prior role in the
information technology (IT) division, Wong believed that harnessing the data already at her
disposal and the assets already in place could offer a faster path to measurable results.

With the board meeting set for Thursday morning and a preliminary review with Goh and his
marketing director in just over 24 hours, there was no time to lose. Moving calmly but quickly,
she assembled her team of business analysts in a meeting room to discuss the situation.

1
Singapore Population up at 5.31 million, Channel News Asia, September 28, 2012,
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1228473/1/.html, accessed March 2013.
SMU-13-0014AX Sentosa: Asias Favourite Playground

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Domestic tourism in Singapore

While developing Singapore as an international tourist destination had been a key focus for the
Singapore government, domestic tourism had grown even more quickly. Across the city-state
free, non-gated attractions were especially popular, experiencing an impressive 120% growth in
attendance between 2010 and 2011.
2
These attractions included the Singapore Botanical
Gardens, Marina Barrage, and Clarke Quay, a nightlife and dining area in the central business
district. Underpinning this growth was the high priority local consumers placed on time and
value for money in their leisure choices.

According to a 2011 MasterCard survey, the most popular leisure activities in Singapore were
going out to movies, dining out, shopping, and surfing the web.
3,4
Dining out was common in
Singapore, with 90% of those polled eating dinner at hawker centres, open-air markets with
stalls offering freshly prepared meals, at an average of 16 visits per month.
5
Hawker centres
and smaller collections of food stalls offered affordable meals. A 2011 survey found that more
than 50% of stalls offered at least some meals for S$2.50 (US$2.00) or less.

Euromonitor, a market research company, calculated that nearly 9% of total consumer
expenditure in Singapore went to leisure and recreation, putting it higher than South Korea or
Hong Kong.
6
In 2011, per capita consumer expenditure on leisure reached S$23,947
(US$19,470).
7
Singapore employees were entitled to an average of 27 days of leave, with 97%
of the population taking at least one holiday during the year.
8
Sentosa was the number one draw
for domestic travel, followed by the Orchard Road shopping district.
9

On the other hand, Singaporeans worked at least as hard as they played. According to
Euromonitor, 19% of employees worked more than 11 hours per day, nearly twice the global
average of 10%.
10
As a result, many Singaporeans felt more constrained by time than money in
choosing their leisure activities.

In short, the domestic market was price sensitive and highly competitive, both internally and
against low-cost international destinations nearby. Despite these pressures, Wong was
optimistic. The effects of increasing consumer affluence and greater demand for leisure were
growing stronger every year. She believed Sentosa could take advantage of these trends.

Sentosa: Peace and tranquillity

The early years

The island of Sentosa sat at the southern tip of Singapore. Shortly after Singapores
independence in 1965, the government set its sights on developing the island as a tourist
destination. Previously the site of significant British fortifications, the islands transformation

2
Joy Fang, Sentosa a Hit, But Not Other, AsiaOne News, April 7, 2011,
www.asiaone.com/News/AsiaOne%2BNews/Singapore/Story/A1Story20110407-272181.html, accessed March 2013.
3
Consumer Lifestyles in Singapore, Passport GMID, Euromonitor International, December 2012, accessed March 2013. Local
Consumer Spend on Dining and Entertainment Continues to Thrive Despite Inflation: MasterCard Survey, MasterCard Worldwide,
September 15, 2011, www.mastercard.com_hk_personal_en_wce_pdf_HK_MasterCard_Consumer_Purchasing_Priorities_Dining
Entertainment_EN.pdf, accessed March 2013.
4
Consumer Lifestyles in Singapore, Passport GMID, Euromonitor International, December 2012, accessed March 2013.
5
Hawker Centre: a market at which individual vendors sell ready-to-eat food from small booths. Hawker Centre, Oxford
Dictionaries, http://oxforddictionaries.com/definition/english/hawker%2Bcentre, accessed March 2013.
6
7
Ibid.
8
Ibid.
9
Tourism Flows Domestic in Singapore, Passport GMID, Euromonitor International, July 2012 accessed March 2013.
10

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began by changing its name from Pulau Belakang Mati (Island of Death from Behind) to
Sentosa, a Malay word connoting peace and tranquillity. By 1972 the development of the island
was consolidated by the formation of the Sentosa Development Corporation (SDC), a statutory
board under the purview of the Ministry of Trade and Industry.
11
Ferry transportation to the
island was augmented with the construction of a cable car line, which was completed in 1974.
12

This connection between nearby Mount Faber to the island provided the first alternative to the
ferry service, which had been the main method of transportation to and from the island.

The island welcomes more visitors

Due to Sentosas strategic importance to Singapores tourism industry, SDC had received
significant government investment over the years. In return, it was expected to operate
profitably and attract additional private investment to the island. To facilitate these goals, a
corporate restructuring was undertaken in 2002. SDC and its subsidiaries were henceforth
referred to as the Sentosa Leisure Group (refer to Exhibit 2 for additional information about
Sentosa, and Exhibit 3 for a summary of Sentosas corporate structure).

By Sentosas 40
th
anniversary in 2012, the island was firmly positioned as a leisure destination
for locals and tourists in close proximity to Singapores central business district:

Located just 15 minutes from the city, Sentosa, Asias Favourite Playground, is home to an
exciting array of themed attractions, award-winning spa retreats, lush rainforests, golden
sandy beaches, resort accommodations, world-renowned golf courses, a deep-water
yachting marina and luxurious residences. Spread over 500 hectares, the vibrant island
resort is ideal for both business and leisure.
13

The chief executive officer of Sentosa Development Corporation said:

Building on the islands success, we are looking at how best to provide our guests with
more activities and accommodation choices. We are exploring how to optimise the
potential of the beach strip as a day-time play hub and as a lifestyle venue in the evenings.
We also recognise the potential in enhancing the key pedestrian thoroughfares and way-
finding on Sentosa to provide a lift in the overall guest-experience.
14

Visitor numbers were meticulously tracked and helped tell a story of strong growth. The
revenue generated from entry fees alone was a healthy source of revenue. Since its founding in
1972, the number of visitors had grown dramatically. According to an SDC press release
looking back on the 40 years since its founding:

Island visitorship has grown from a base of 600,000 visitors per annum in the 70s, to 2
million in the 80s, and 4 million in the 90s. In FY07/08, Sentosa welcomed 6 million
visitors. This figure grew to 19 million in 2011. So far this year, between January and June,
9.2 million guests have visited Sentosa, putting the island resort on track for its annual
target of 19-20 million visitors.
15

Nineteen million visitors was an impressive figure when compared to the islands attendance in
prior years, but perhaps even more impressive was its comparison to other world-class

11
Sentosa 40 Years, Sentosa Development Corporation, 2012, http://sentosa40.com/flashback.aspx, accessed March 2013.
12
Ibid.
13
About Us, Sentosa Leisure Group, http://www.sentosa.com.sg/en/about-us/sentosa-island/, accessed March 2013.
14
40 Fun-Filled Years with an Invigorating Future, Sentosa Development Corporation Press Release, 31 August 2012,
http://www.sentosa.gov.sg/wp-content/uploads/Media-Release_Sentosas-40th-Anniversary_Aug-2012_FINAL.pdf, accessed
March 2013.
15
40 Fun-Filled Years with an Invigorating Future, Sentosa Development Corporation Press Release, 31 August 2012,
http://www.sentosa.gov.sg/wp-content/uploads/Media-Release_Sentosas-40th-Anniversary_Aug-2012_FINAL.pdf, accessed
March 2013.

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destinations. For example, in 2010 Euromonitor estimated that the most visited attraction in the
world was the Great Wall of China with nearly 20 million annual visitors, followed by Walt
Disney World at 17.5 million.
16
From March 2010 to February 2011 Sentosa hosted 19.1
million guests, making it one of the top five most visited attractions in the world.
17

A new anchor tenant

In January 2010, Resorts World Sentosa (RWS) opened its doors to the public, bringing a huge
change to the island. Occupying nearly 10% of the islands land area, the sprawling integrated
resort included a world-renowned theme park, Universal Studios, as well as Singapores first
licensed casino (refer to Exhibit 4 for additional information about RWS).

The impact of RWS on the Sentosa landscape was dramatic, both physically and in the surge in
visitors that ensued. In the first two years of operation RWS alone attracted more than 30
million guests.
18
Perhaps the most remarkable increase occurred between 2009 and 2010,
where total island visitation more than doubled in less than a year. RWS certainly had become
the most prominent attraction on the island, but from SDCs perspective it was still just one out
of many operators that called Sentosa home.

A complete leisure destination

Attractions

The Sentosa Leisure Management (SLM) subsidiary of SDC, headed by senior divisional
director David Goh, managed the day-to-day operations of the island and served as the primary
point of contact for the various attraction operators, known as island partners. In addition to
RWS, Sentosa hosted dozens of attractions owned and operated by a variety of partners (refer
to Exhibit 5 for a full list of attractions).

Attractions were generally classified as one of two types. Group-owned attractions were owned
directly by Sentosa Leisure Group. An example of this type of attraction was the iconic Merlion
in the centre of the island. The 37 metre tall half-lion, half-fish was the icon of Singapore and
an imposing landmark overlooking the island of Sentosa. Inside the Merlion was a walking
history of the origin of this mythical creature along with a vista on top of the structure.

Independent island partners ran the second type of attraction. An example of this was iFly
Singapore, a simulated sky diving experience, which opened in August 2009 and expanded in
2011. Tickets for independently operated attractions could be purchased at SLM-operated ticket
counters, at the attraction itself, or, in the case of the iFly attraction, on the operators website
(www.iflysingapore.com). Independent attractions would be staffed by personnel hired by the
island partner, which leased the land from SDC in a contractual relationship similar to that of a
landlord and tenant in a shopping mall.

Hotels and amenities

The range of hotels on Sentosa reflected the development of the island itself. For a rustic
experience guests could stay in one of the 15 kampong huts at the Costa Sands Resort,

16
Euromonitor International's Top Tourist Attractions Ranking, Passport GMID, Euromonitor International, July 2011, accessed
March 2013.
17
Ibid.
18
Launch of the Marine Life Park by Gran Opening Day, Resorts World Sentosa Press Release, September 2012,
http://www.rwsentosa.com/LinkClick.aspx?link=RWS%2Fpressroom%2Fpressroom+2012%2FRWS+GO+Announcement.pdf&,
accessed March 2013.

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reminiscent of Singapore in the 1970s. At the other end of the spectrum was the W Sentosa, an
ultra-modern hotel that boasted 240 newly constructed guest rooms. Of the hotels in operation
on the island, over half were opened between 2009 and 2012, and only two had been opened
before 2000.

RWS operated six of the 14 hotels on the island, which included Crockfords Tower, Festive
Hotel, Hard Rock Hotel Singapore, Hotel Michael, Beach Villas, and the Equarius Hotel. These
hotels all opened after 2010, and their combined 1,500 guest rooms accounted for nearly half of
the hotel rooms on the island.

In addition to the attractions and the hotels, Sentosa also offered a wide range of dining options,
gift shops, and eight different spas.

Getting to the island

There were several ways to get to Sentosa. While the ferry service no longer operated, the cable
car still offered a premium experience with its stunning views. The Sentosa Gateway, a
causeway from the main island of Singapore, opened to allow passenger cars onto the island.
The year 2007 saw the completion of the Sentosa Express monorail connecting the island with
VivoCity, Singapores largest shopping mall. In 2011, the Sentosa Boardwalk opened, which
for the first time permitted pedestrian traffic onto the island.
19

By 2013, the four main modes of entry were:
20

1. Sentosa Express (return ticket, S$4)
2. Sentosa Gateway (single entry, S$27)
3. Sentosa Boardwalk (single entry, S$1)
4. Singapore Cable Car (return ticket, S$26)

The entry fees from these access points were a significant source of revenue for SLM.
Ticketing and admission

Tickets for Sentosa attractions could be obtained through a variety of channels, including:

1. Sentosa-owned ticket counters on or near the island
2. Sentosas online ticket portal, ticketing.sentosa.com.sg
3. TransitLink ticket counters at Singapore mass transit stations
4. Individual attraction ticket counters (e.g., the Skyline Luge Sentosa)
5. Individual attraction websites (e.g., www.iflysingapore.com)
6. Travel agents and tourist service providers (e.g., Travelmania / Go Singapore Pass)

Most tickets were purchased at Sentosa-owned ticket counters, which were located at the
Sentosa Gateway station in the VivoCity mall and at several locations around the island. Some
types of tickets were sold at popular mass transit stations through TransitLink, the provider of
ticket payment services for Singapores public transit system. In addition, independent

19
20
Getting to Sentosa, Sentosa Leisure Group, http://www.sentosa.com.sg/en/getting-to-around-sentosa/getting-to-sentosa/,
accessed May 2013.

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operators sold tickets for their own attractions, both directly and through intermediaries such as
travel agencies and tourist service providers.

Several island partners required Sentosa-issued tickets to be validated at a kiosk or counter
near their attractions, where separate tickets were issued for entrance to the attractions
themselves. This additional step reduced the need for integration with Sentosas ticketing
systems, but occasionally caused inconvenience or confusion for guests.

The Sentosa Islander program

Over the years Sentosa had offered a variety of loyalty programs in different forms. The
original one, called the Sentosa Club, was started in 1977.
21
By 2000 the program had evolved
into two distinct types of memberships. The first was called the Funseekers Club, which offered
free bus rides, discounted attraction prices and hotel stays, along with other savings. The
second was the Educators Club, which was targeted toward teachers and sold on a per-class
basis. In addition, corporate memberships provided access to employees of various companies
in Singapore. By 2005 the program had further evolved into the present-day Sentosa Islander
program, which consolidated individual, family and corporate membership options. The first
version of the Islander program included free bus rides to the island and a host of discounts at
various attractions, hotels, and food and beverage outlets.

Despite the many benefits of becoming an Islander, the program had never been very popular.
Sentosas management had tried several approaches to attract more members, with a focus on
varying the programs benefits and pricing (refer to Exhibit 6 for details on the programs
structure from 2010 to 2013).

Initially the membership package included wide-ranging discounts and entry via Sentosa
Express or shuttle bus for S$19.90. In 2011, a premium membership was introduced that
included drive-in access priced at S$88. Limited interest was generated at this price point, so in
2012 the program was re-priced at S$25 and expanded to include unlimited island entry for
drive-in, monorail or pedestrian access. This benefit led to a marked increase in the number of
Islander members, as the value of unlimited and flexible island entry was easy to appreciate.
However, many members viewed the program primarily as an entry pass, despite the numerous
other discounts it offered around the island. In other words, potential Islanders tended to
estimate the value of membership based primarily on how much they expected to save on
entrance fees over the course of a year.

It was no coincidence that the single largest draw for the Islander program was entry onto
Sentosa Island, as this was also one of the only benefits that SLM controlled directly. Because
ticket sales were the main revenue source for most of the other operators, it was difficult to
devise a plan that would incentivize them to promote the program. Additionally, each element
of a package (e.g., promotion or discount) might need to be negotiated separately with a
different island partner, making it difficult to update the packages frequently.

By late 2011, a complete membership database for the Islander program was in place. Sentosa
marketing staff could print membership cards and capture information like email addresses and
birthdays. This information could then be used to create targeted promotions for Islanders.
There was, however, no link to the ticketing system so it was impossible to see what a
particular guest did during his or her time on the island.

21

7/14

In May 2013 the programs membership stood at 92,000, with a nearly 60% annual turnover
rate for individual passes. The family pass had better durability of membership, but still nearly
40% of family membership holders did not renew the following year.

Sentosa Play Pass: 1 Pass. 1 Price. More PLAY!

To mitigate the complexity of the ticketing process and promote a more seamless experience
across attractions, Sentosa launched the Play Pass program in 2011. The Play Pass offered a
menu of options at a fixed price. Different types of passes were valid at different times of day.

By March 2013, five versions of the Play Pass were offered:

1. Day Play Pass (up to 17 options, valid from 9am 7pm)
2. Noon Play Pass (4 out of 17 options, valid from 2:30pm 7pm)
3. Evening Play Pass (3 out of 13 options, valid from 6pm 10pm)
4. Premium Play Pass (up to 23 options, valid from 9am 7pm)
5. 2-Day Play Pass (one ticket to Universal Studios + one Day Play Pass)

Play Passes could be purchased at any SLM ticket counter, as well as TransitLink counters
(Day and Noon passes), certain 7-Eleven stores and Shell stations (Noon pass only) and, since
November 2012, online at ticketing.sentosa.com.sg. Play Passes did not include island
admission charges or transportation to or from the island, but offered savings up to 70% off
regular attraction prices.
22
(Most guests realized substantially less than the maximum possible
value because it was impractical to visit all of the participating attractions in a single day.)

Each pass was a smartcard that contained a radio-frequency identification (RFID) chip, which
opened up a wide range of possible functionality such as stored-value purchases. The Play Pass
was also a boon for collecting information about guests behavior patterns. Because each pass
took a journey around the island with a particular guest and its location was recorded in a
central database each time it was scanned at an attraction, SLM was able to build up a more
fine-grained picture of the demand for attractions than was possible simply by looking at
aggregated data. The information collected by SLM revealed which attractions guests visited,
as well as the time of day and the order in which the visits occurred.

Yet, the information provided by the Play Pass program was limited in other ways. In particular,
no demographic information was collected for Play Passes sold on site or through retail
partners (the majority of the total), so managers could not distinguish between local and foreign
guests, or even tell whether the holder of a Play Pass was also an Islander member. For online
sales, some identifying information was taken in order to verify the purchasers identity when
collecting the physical passes at an SLM ticket counter. Wong estimated that about 100,000
individual records could be extracted from the ticketing database, but cautioned that there
might be serious data quality issues (e.g., duplicate records, records for transactions not
completed, and missing or invalid fields).

Getting the word out

In addition to maintaining Sentosas main web site (www.sentosa.com.sg), SLMs marketing
department actively promoted Sentosa through both traditional and electronic media.

22
Sentosa Play Pass, Sentosa Leisure Group, http://www.sentosa.com.sg/en/sentosa-play-pass/.

8/14

Outdoor advertising on the island itself was one of the most effective ways to strengthen the
Sentosa brand and disseminate information about the many activities going on at any given
time. In 2011, Sentosa had signed a contract with JCDecaux, the global advertising firm, which
included scrolling panels at Sentosas bus stations.
23
SLM also operated a network of 70-inch
digital LCD screens in the Sentosa Express stations, which were used for informational and
promotional purposes.

In April 2011 Sentosa launched its official Facebook page. It quickly became a popular spot for
looking up the latest events on Sentosa. Invites sent through the site attracted significant
numbers of subscribers. In its first year of operation it attracted more than 20,000 likes,
24

which grew to nearly 35,000 by April 2013.
25
(By comparison, the RWS Facebook page had
about 350,000 likes.
26
)

January 2012 saw the launch of the first YouTube channel dedicated to Sentosa. New videos
were uploaded approximately once a month and were used to promote the latest happenings on
the island. Sentosa also had a Twitter feed (@Sentosa_Island) with nearly 3,000 followers.
27

Not the only game in town

The Islander and Play Pass programs were broadly familiar to their primary target market:
Singapore residents. However, a variety of new and established players were vying for the
same tourist dollars. Sentosa thus faced strong competition on several fronts.

RWS Invites

In April 2012 RWS launched its own loyalty program called RWS Invites. This program sought
to bring more local visitors to the theme park by offering benefits for repeat patronage. A press
release of the launch noted the unique features of the loyalty program:

On 1 April 2012, RWS INVITES will offer card members a plethora of perks from its over
60 food outlets, two themed attractions, six hotels and a gamut of entertainment options
including exclusive benefits at concerts, special events and even free parking to further
tap into the local segment which forms the bulk of repeat visitorship to the resort.

The loyalty programme is also a way to track the current high volume of repeat visitors, to
offer even more personalized service and to thank them for their patronage.
28

Credit card promotions

Several credit card companies offered promotions directly in conjunction with specific
attractions. A common practice in Singapore was for major credit card brands to partner with
their merchants. For Sentosa, this meant that a credit card company could offer a cash advance
to an attraction operator and help promote the attraction to its customers and partners. These
promotions often offered discounts of 15% or more.

23
JCDecaux Singapore Wins the Advertising Contract for Sentosa, JCDecaux Press Release, May 11, 2011,
http://www.jcdecaux.com.sg/wp-content/uploads/2011/12/JCD-PR-Win-of-Advertising-contract-for-Sentosa-May-10th-2011.pdf,
accessed May 2013.
24
Sentosa 11/12 Annual Report, Sentosa Development Corporation, http://www.sentosa.gov.sg/annual-reports/, accessed March
2013.
25
Sentosa (Official), http://www.facebook.com/sentosaofficial, accessed April 2013.
26
Resorts World at Sentosa, http://www.facebook.com/ResortsWorldatSentosa, accessed April 2013.
27
Sentosa (Sentosa_Island) on Twitter, https://twitter.com/Sentosa_Island, accessed April 2013.
28
Resorts World Sentosa Unveils Loyalty Programme to Boost Local Visitor Numbers, Resorts World Sentosa Press Release,
March 21, 2012, http://www.rwsentosa.com/language/en-US/PressRoom, accessed March 2013.

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Groupon and Deals.com

Another source of competition was daily deal sites like Groupon and Deals.com. These sites
often sold tickets at steep discounts (frequently 50% or more off list prices). Travel agencies
and tourist service providers periodically would sell excess inventory through this channel,
often passing the entire discount onto consumers.

The task at hand

Wong turned to her team of young but ambitious analysts, who were trying hard to look
unfazed by the torrent of information she had just conveyed. Placing her phone on the table in
front of her, she crisply articulated their assignment:

David is a rising starhe wants a bold plan. He and the marketing department think we
should be able to double the Islander membership base by the end of the year and cut the
attrition rate in half. Needless to say, we have to be able to deliver what we promise.

Pausing for emphasis, she enumerated the constraints they faced:

First, read my lipsno new technology. We can run reports, create content, ask our front-
line staff to do things a little differently. But we cant change our core systems overnight,
and we cant get new functionality built fast enough to make an impact in 2013.

Second, this is not the time to reinvent our business model. In particular, contracts with our
island partners can take a long time to negotiatedont expect our lawyers to magically
rewrite them. The same goes for our commitments to the government.

And third, Finance isnt going to let us burn money on this. Whatever we do this year has to
come out of existing budgets, and we still have to meet our revenue targets.

Reacting to the look of dismay that had settled over the faces of her team, she softened her tone
and offered a few words of encouragement:

I have a hunch that if we can find ways to use the resources we already have to offer better
value to more people, we can turn the program around. Its not the most glamorous task,
but its important for our credibility that we do it well.

By the way, the rest of my day is packed with meetings over on the IT side. I wish I could
help, but I dont think Ill be able to give you any other input until the meeting with David
tomorrow morning.

With that, she stepped briskly out of the room.


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EXHIBIT 1: LOCAL VS. TOURIST ATTENDANCE

Fiscal Year Total Visitors Local Tourist
FY 2011/2012 19,000,000 50% 50%
FY 2010/2011 19,100,000 50% 50%
FY 2009/2010 7,833,000 48% 52%
FY 2008/2009 6,133,000 46% 54%
FY 2007/2008 6,125,000 43% 57%
FY 2006/2007 5,679,000 47% 53%
FY 2005/2006 5,175,000 47% 53%
FY 2004/2005 5,050,000 58% 42%

Source: Sentosa Leisure Groups Annual Reports (20072012), http://www.sentosa.gov.sg/annual-reports/

EXHIBIT 2: ABOUT SENTOSA

Located just 15 minutes from the city, Sentosa, Asias Favourite Playground, is home to an
exciting array of themed attractions, award-winning spa retreats, lush rainforests, golden sandy
beaches, resort accommodations, world-renowned golf courses, a deep-water yachting marina
and luxurious residences. Spread over 500 hectares, the vibrant island resort is ideal for both
business and leisure.

In 2010, Sentosa welcomed Singapores first integrated resort, Resorts World Sentosa, which
operates South East Asias first Universal Studios theme park.

Located on the tranquil eastern end of the island sits Sentosa Cove, Singapores first and most
exclusive marina residential community. This exclusive and unrivalled enclave offers tropical
resort living, just minutes away from Singapore's city centre. With an already bustling
residential community, Sentosa Cove will see over 2,000 homes nestled here by 2014. Together
with romantic quayside restaurants, retail and specialty shops, Singapores only truly
oceanfront residences, Sentosa Cove is quickly becoming the worlds most desirable address.

The Island is also proud to be home to Sentosa Golf Club and its two acclaimed golf courses,
The Serapong and The Tanjong. These courses and the club set the backdrop for the Singapore
Open for eight years running and is the host venue for the HSBC Womens Champions.

The island resort is managed by Sentosa Development Corporation, which works with various
stakeholders in overseeing property investments, attractions development, operation of the
various leisure offerings, and management of the residential precinct on the island. The
Corporation also manages the Southern Islands, and owns Mount Faber Leisure Group, which
runs Singapores only cable car service.

Welcoming a growing number of local and international guests every year, Sentosa is Asias
leading leisure destination and an essential part of Singapores goal to be a global destination to
work, live and play.

Source: Sentosa website, http://www.sentosa.com.sg/en/about-us/sentosa-island/, accessed April 2013.


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EXHIBIT 3: ABOUT SENTOSA DEVELOPMENT CORPORATION

Sentosa Development Corporation (SDC) was established on 1 September 1972 as a Statutory
Board under the Ministry of Trade and Industry. Its charter since inception has been to
oversee the development, management and promotion of the island as a resort destination for
locals and tourists. Under the care of SDC, the island went through a makeover to become a
premier getaway with multi-faceted appeal. From business conventions to beach
parties, Sentosa caters to an extensive range of needs and interests.

SDC has evolved and grown over the years. It currently oversees the following business and
commercial units Sentosa Leisure Management Pte Ltd, Sentosa Golf Club, Sentosa Cove
Resort Management Pte Ltd and Mount Faber Leisure Group (MFLG). Collectively, SDC & its
subsidiaries are referred to by our stakeholders as the Sentosa Leisure Group.

Sentosa Leisure Management handles the day-to-day operations on the island. This includes
attractions development and management, marketing and sales, maintenance, safety and
security, landscaping and retail.

Source: Sentosa 11/12 Annual Report, Sentosa Development Corporation, p. 13,
http://www.sentosa.gov.sg/annual-reports/, accessed March 2013.

EXHIBIT 4: ABOUT RESORTS WORLD SENTOSA

Resorts World Sentosa (RWS), Singapores first integrated resort is located on the resort island
of Sentosa. Spanning 49 hectares, the resort opened in January 2010 and welcomed over 30
million visitors in its first two years of opening. RWS is home to the regions first-and-only
Universal Studios theme park, the worlds largest oceanarium Marine Life Park, the Maritime
Experiential Museum, a casino, luxurious accommodation in six unique hotels, the Resorts
World Convention Centre, celebrity chef restaurants, a world-class spa as well as specialty
retail outlets. The resort also offers entertainment including a resident magical spectacular
Incanto, and public attractions such as the Crane Dance and the Lake of Dreams. Resorts World
Sentosa is wholly owned by Genting Singapore, a company of the Genting Group. For more
information, please visit www.rwsentosa.com.

Source: Resorts World Sentosa Ushers in the year of the Snake, Resorts World Sentosa Press Release,
January 28, 2013, http://www.rwsentosa.com/language/en-US/PressRoom, accessed March 2013.


12/14
EXHIBIT 5: SENTOSA ATTRACTIONS AND PROMOTIONS

!""#$%"&'( )*+%#&,"&'( -.(*#+/&, )*0&%$"*0 2*3+&"*
4
5$6,7* !087" 9#&%&(:
;<$#%/ =>4?@ A+7$(0*# 9#'6'"&'( =>>B !""*(0$(%*
=
!"#$% '##(")#*+,-
underwaLer World
Ccean advenLure
and dolphln lagoon
lndependenLly Cwned www.underwaLerworld.com.sg S$23.90 for admlsslon 10 off LlckeL 1,238,000
SenLosa Luge &
Skyrlde
SLreeL luge lndependenLly Cwned none S$12.30 for luge & skyrlde S$2 off LlckeL 1,230,000
Songs of Lhe Sea
WaLer/llghL
performance
SenLosa uevelopmenL
CorporaLlon
none S$12 for one show 20 off LlckeL 1,193,000
Slngapore Cable
Car
Cable car rlde
SenLosa uevelopmenL
CorporaLlon
www.mounLfaber.com.sg S 29 for round Lrlp rlde 20 off rlde 314,000
lmages of
Slngapore
Slngapore hlsLory
exhlblL
SenLosa uevelopmenL
CorporaLlon
none S$10 for admlsslon 20 off admlsslon 463,000
1lger Sky 1ower
LlevaLed vlewlng
plaLform
SenLosa uevelopmenL
CorporaLlon
none S 13 for one rlde 13 off LlckeL 461,000
SenLosa 4u Maglx
4u LheaLre
experlence
lndependenLly Cwned www.senLosa4dmaglx.com.sg S$18 for admlsslon 13 off LlckeL 430,000
1he Merllon
Slngapore's
naLlonal lcon
SenLosa uevelopmenL
CorporaLlon
SenLosa ClneblasL LxLreme log rlde lndependenLly Cwned www.senLosa4dmaglx.com.sg S$18 for admlsslon 13 off LlckeL 336,000
8uLLerfly ark &
lnsecL klngdom
8uLLerfly and
anlmal experlence
lndependenLly Cwned www.[ungle.com.sg S$16 for admlsslon S$2 off LlckeL 302,000
uesperados ln 3u
3u lnLeracLlve
experlence
lndependenLly Cwned www.senLosa4dmaglx.com.sg S$14 for admlsslon none 86,000
lorL Slloso 1ours
PlsLorlcal WW2
experlence
SenLosa uevelopmenL
CorporaLlon
Segway SenLosa
Segway Lours of
SenLosa
lndependenLly Cwned www.segway-senLosa.com S$38 for one rlde 13 off LlckeL Cpened !anuary 2009
MegaZlp
AdvenLure ark
Zlp llne advenLure lndependenLly Cwned www.megazlp.com.sg S$33 for Lhe zlp llne none Cpened !uly 2009
llly Slngapore
SlmulaLed sky
dlvlng
lndependenLly Cwned www.lflyslngapore.com S$69 for 2 skydlves 10 off flrsL Llme Cpened AugusL 2009
Wave Pouse
SenLosa
SlmulaLed surflng
and beach
lndependenLly Cwned www.wavehousesenLosa.com $S40 for one hour of surflng lree 2nd hr 1sL Llme Cpen CcLober 2009
CombaL Sklrmlsh
Llve
Laser slmulaLed
combaL
lndependenLly Cwned www.combaLsklrmlsh.com S$33 for Lunnel baLLle 10 off LlckeL Cpened ln March 2012


13/14
EXHIBIT 5: SENTOSA ATTRACTIONS AND PROMOTIONS (CONTD.)

!""#$%"&'( )*+%#&,"&'( -.(*#+/&, )*0&%$"*0 2*3+&"*
4
5$6,7* !087" 9#&%&(:
;<$#%/ =>4?@ A+7$(0*# 9#'6'"&'( =>>B !""*(0$(%*
=
!"#$%&'
)%%*$+%,-".
alawan 8each
lamlly-focused
beach
SenLosa uevelopmenL
CorporaLlon
none lree n/A
Slloso 8each
LxclLlng beach
desLlnaLlon
SenLosa uevelopmenL
CorporaLlon
none lree n/A
Anlmal & 8lrd
LncounLers
MeeL anlmals and
8epLlles
SenLosa uevelopmenL
CorporaLlon
none lree n/A
SouLhernmosL
olnL of
ConLlnenLal Asla
unlque seLLlng for
speclal occaslons
SenLosa uevelopmenL
CorporaLlon
none lree n/A
SenLosa naLure
ulscovery
Pands-on naLure
experlence
SenLosa uevelopmenL
CorporaLlon
none lree n/A 106,000
/&.-*%. 0-*1'
2&"%-.$
unlversal SLudlos
Slngapore
1heme park
8esorLs World
SenLosa
www.rwsenLosa.com S$74 Cne uay ass none Cpened !anuary 2010
Lake of ureams
Laser and waLer
show
8esorLs World
SenLosa
www.rwsenLosa.com lree n/A Cpened lebruary 2010
Crane uance
Laser and waLer
show
8esorLs World
SenLosa
www.rwsenLosa.com lree n/A Cpened uecember 2010
1he MarlLlme
LxperlenLlal
Museum
MarlLlme museum
8esorLs World
SenLosa
www.rwsenLosa.com
lncluded wlLh S.L.A. Aquarlum
admlsslon
none Cpened CcLober 2011
Marlne Llfe ark
S.L.A. Aquarlum &
WaLer ark
8esorLs World
SenLosa
www.rwsenLosa.com S$29 for admlsslon none Cpened uecember 2012
4,303,000*

1 All attractions are listed on www.sentosa.com.sg, but several also have separate dedicated websites
2 2009 last year available (source: 2009/2010 Annual Report)
* Combined attendance for beaches and associated ungated attractions

Source: Various (see table and notes above), accessed March 2013.

14/14
EXHIBIT 6: ISLANDER MEMBERSHIP PLANS, 201013

Date

Plan
Individual
Price
Family
Price

Benefits
July
2010
Islander
Membership
S$19.50
(new)
S$15.00
(renewal)
S$50.00
(new)
S$40.00
(renewal)
50 times free island entry via Sentosa Express and
Sentosa Bus from HarbourFront Bus Interchange
Discounts at participating attractions, shops,
accommodations and F&B outlets
Exclusive discounts / invites to Sentosa events
Exclusive Islanders events
March
2011
Islander Plus
Membership
$S88 (new)
S$75
(renewal)
S$138 (new)
S$120
(renewal)
25 times complimentary drive-in entry to Sentosa per
year (applicable to main card holder only)
50 times complimentary island admission via the
Sentosa Express and Sentosa buses from Seah Im Bus
Terminal per year (does not include the Sentosa Cove
and Sentosa Golf Club shuttle buses)
Special Island Partner rates at Sentosa Golf Club
10% off Jewel Cable Car ride
Up to 50% off hotel stays
Exclusive invites to Sentosa events
Islander
Basic
Membership
S$19.50
(new)
S$15.00
(renewal)
S$50.00
(new)
S$40.00
(renewal)
50 times complimentary island admission via the
Sentosa Express and Sentosa buses from Seah Im Bus
Terminal per year (does not include the Sentosa Cove
and Sentosa Golf Club shuttle buses)
Up to 40% off hotel stays
April
2012
Islander
Basic
Membership
S$25.00
(new)
S$20.00
(renewal)
S$50.00
(new)
S$40.00
(renewal)
Unlimited complimentary island admissions via
Sentosa Gateway (drive-in), Sentosa Express, and
Sentosa Boardwalk
Island fun offers
Island dining privileges
Island stay discounts
Island shopping deals

Source: Archived versions of Sentosa web pages, accessed March 2013:
http://web.archive.org/web/20100718101723/http://www.sentosa.com.sg/en/islander/individual-family/

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