13 June 2013

Malaysia Shares - Genting Plans to Re-Invest in Genting Highland

After 41 years of opening in Genting Highland, the management revealed that they would finalize plan to redevelop / reinvest in the Highland. To me, this is a brave move as the management has full confidence and commitment on its homeland as Malaysia is a Muslim dominated country. A RM 3.0 Billion should be a good budget to further improve the revenue and net profits there.

I have a friend who was retired as a sub-con of Genting Highland few years back when Genting started to venture in Resort World Sentosa, an iconic resort in Singapore Sentosa island. My wife and I paid a visit last year and founded that the weather there has been hotter, and it was just like  an old town to us as there was no further development.

To be successful in tourism business, you have to keep on improving your brand awareness by providing good quality service to clients, else they will soon move to other attractions that may provide better ideas on vacation. If you really like to be in this industry, it is better that you can have a long term plan so that your cash flow can be increasing steadily over the years.

A Singapore listed counter that I can think of is related in tourism industry is Straco, which is focus in China domestic market. Actually I prefer to invest in this industry as this is "Green" Industry and it may not incur a lot of ongoing CAPEX over years to boost the revenue. In fact, you need to train your staffs so that they can entertain the tourists and leave them a good impression so that they may come back again.

Above is just my humble opinion.

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