By Derek da Cunha , FOR THE STRAITS TIMES

WITH the opening of the first phase of the Resorts World Sentosa integrated resort (IR) on Jan 20, a new milestone will be reached in Singapore's evolving economic and social development.

Tourist arrivals to Singapore, especially from neighbouring countries, will experience an upswing. There will be job creation in a job market that will become more diverse. The overall economy will also benefit from the IR bounce effect once both come onstream.

Amid all this, there has been some disquiet expressed in a number of quarters that the phased opening of Resorts World Sentosa and later, Marina Bay Sands, will mean that the gaming component - the casinos - will start operating well before all components of both IRs are completed. The argument of these observers is that this would be at variance from the projects as they were originally conceived in 2005.

The problem with that argument is that between 2005 and this year, a significant event intervened: the global economic crisis of 2008-09, which continues to linger. There is also the possibility that some advanced economies may experience a double-dip recession, which will invariably affect Singapore because of its open economy.

Added to this, the near-simultaneous construction of the two IRs meant that both were competing for construction workers, building materials, and that increasingly scarce commodity - sand.

Put together, it is not surprising that there have been delays in the completion of both IRs in their entirety. The Government therefore has agreed to the two IRs opening in phases as long as a substantial part of each is completed and functioning in the initial phase, and that this will still allow the objective of generating tourist receipts to be achieved.

The argument of those who say the casinos should not begin operating until the total completion of both projects, because they fear the negative social impact of the gaming halls, does not seem to be grounded in reality.

To be sure, there will be a social impact. And in my view, that negative social impact is likely to be significant, even if it may not be observable beyond the immediate circle of those who may be caught up in the addictive effects of gambling.

However, to argue for the completion of both IRs in their totality before they commence operations is purely academic. Such a delay will merely forestall the social fallout by perhaps a year or so. More significantly, when the local economy has only just returned to the growth path, a delay in commencing operations at the IRs would not be a positive development for the economy.

Observers should also keep another issue firmly in mind. This relates to the fact that no casino resort in Asia has seen non-gaming revenues - that is, revenues from hotel rooms, food and beverage, musical shows, the sale of high-end merchandise and the like - constituting a significant portion of total revenues.

In casino resorts in most countries, gaming revenues form the vast bulk of total revenues. The main exception to this general rule is found outside of Asia. In Las Vegas - which is a mature casino market - non-gaming revenues have, since 1999, made up more than half of total revenues. But then, 'Sin City', as Las Vegas is known, has much more to offer visitors than its gaming tables and slot machines.

Due to the nature of their target market, it is unlikely that Singapore's IRs will follow the Las Vegas model, at least not any time soon. Gaming revenues will form the major proportion of total revenues of both IRs. In fact, revenues generated from the casinos may well have to subsidise some non-gaming components of each IR, whether they be a museum or an oceanarium.

The reality is that other than tourists who visit Singapore because they wish to experience the rides at a Universal Studios theme park, or those who are here for any of the range of meetings, incentives, conventions and exhibitions that both IR operators have already lined up, a great swathe of the foreign visitors making a beeline to the two IRs will be here for what is called 'casino tourism'. If large amounts of foreign money flow into Singapore via that route, it is unlikely that many Singaporeans will have any problem with that concept.

The writer is the author of Singapore Places Its Bets: Casinos, Foreign Talent And Remaking a City-State.