KUALA LUMPUR : GENTING Malaysia Bhd's RM5 billion theme park facelift is a positive surprise but its impact on earnings is still premature, analysts said. RHB Research Institute Sdn Bhd and Public Investment Bank Bhd said in their research reports that the redevelopment of Resorts World Genting may increase the number of visitors and revenue in the long run. However, the research firms believed that it is still too early to quantify the potential impact on Genting Malaysia's earnings forecasts and the results will only be visible in financial year 2016 and onwards. The redevelopment, known as the Genting Integrated Tourism Plan, will be implemented over the next 10 years and will be done in collaboration with the East Coast Economic Region Development Council . The project will be implemented in two phases, with RM4 billion budgeted for the first phase. It will include the Twentieth Century Fox Park, 1,300 hotel rooms, premium retail outlets, a new cable car station and a show arena. The remaining RM1 billion will be spent in the second phase. According to Public Investment Bank , the theme park and new hotel rooms will spur visitor arrivals to new highs, while at the same time be a major contributing factor to mass market growth. Meanwhile, RHB Research said the redevelopment strategy will reinvigorate interest in visiting the resort and in turn, propel the growth of its gaming division in the long run. "We are forecasting a marginal one per cent annual growth in visitor arrivals for financial years 2013-2015," it said. RHB Research and Public Investment Bank have maintained a neutral call on Genting Malaysia , with increased target price of RM4.56 and RM4.35 , respectively.
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