SBM’s plan to fight crisis

Established by Royal Decree of Charles III in 1863, Société des Bains de Mer (SBM) has been responsible for the development of the Monte Carlo district.
SBM is a publicly traded company that has control over the majority of the activities relating to luxury hotels, restaurants and entertainment in Monaco – including its five casinos.
The company plays a prominent role in the economy of the Principality, employing more than 66% of the people living there.
SBM has helped Monte Carlo become, together with Las Vegas, one of the world’s gambling capitals.
However, since the beginning of the 2000s, Monaco has had to face the competition of other cities, such as Macau and Singapore, which have become more and more popular.
Thus, SBM’s turnover has decreased by 40% over the past five years.
Obviously, the new competition from these Asian cities does not tell the whole story.
The company has also had to deal with the global financial crisis, which has particularly affected its wealthy Italian clientele.
In order to tackle the crisis, SBM has decided to launch more ambitious projects.
The company is prepared to invest €600 million to restructure the properties owned by SBM in Monet Carlo, which generate half of its revenues.
In the next two years, many luxury boutiques will be built and major renovations will take place.
With these major investments, the company hopes to attract wealthy players from Easter Europe, the Middle East and Turkey – areas that, so far, have not been specifically targeted.