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In a bid to give a leg up to its tourism sector, the Thai government is mulling legalising casinos in the country by constructing an entertainment complex featuring a casino. The plan for the same was suggested in a report by a panel of Thai lawmakers, which recommended 22 provinces, including Bangkok Metropolis, for kicking off the new gambling hub. This may put Thailand casinos in competition with other Asian counterparts, such as Macau Casinos, in the future.
While the report has been approved by the lower house, it is still awaiting a green light from the Thailand cabinet. “Any final legislation will have to be approved both by the Prime Minister as well as the King. Our sources believe that both individuals do see the considerable economic value potential not only for tourism but in the creation of jobs,” analyst provider Howard J Klein of Casino Business Review LLC who publishes on Smartkarma.
Amidst the latest developments, US-listed Las Vegas Sands, which has a market capitalization of $44.85 bn as of March 1, is one of the industry players keeping a keen eye on the situation in Thailand.
How can Thailand casinos aid tourism?
Thailand’s tourism industry is critical to the country’s economic growth. Prior to the pandemic, tourism contributed roughly one-fifth of the country’s GDP. However, just 430,000 international tourists visited Thailand in 2021, accounting for 1% of the 38.9 million tourists that visited in 2019. In 2022, 11.81 million people visited the Southeast Asian country. The government now forecasts 25 million international tourists in 2023, which is still lower than the pre-pandemic figures.
Thus, to rejuvenate the country’s tourism sector and its economy, lawmakers believe that legalising Thailand casinos can be effective. It is estimated that Thailand can generate at least $2.89 bn (~100 bn baht) in annual tax income by attracting foreigners as well as Thai gamblers who would otherwise spend their winnings in neighbouring nations.
Despite that, many are against the legalisation of casinos in the country. According to a study done by Thailand’s National Institute of Development Administration in January 2022, only 39% of respondents supported the proposal, while 57% opposed it.
Thailand casinos to attract Chinese tourists
With over 11 million visitors — more than a quarter of the nation’s international arrivals — Thailand was the most popular international travel destination for Chinese tourists in 2019. Just two other special administrative areas of China, Hong Kong and Macao, saw more Chinese tourists. Now, with China reopening borders, Thailand is expecting around 5 million Chinese visitors in 2023.
The market for casino tourism in China is currently estimated at $10.232 million and is projected to grow to $22.30 million by 2023. Whereas, Macau is the only place in China where gambling is legal. In 2023, Macau received over 451,000 tourists over the Lunar New Year vacation, an increase of nearly 300% from the previous year.
However, the city has started enforcing a 5% tax on the commissions that casino operators pay to junkets, which bring high-roller gamblers, mostly from mainland China to their venues. Thus, casino operators looking for prospects beyond Macau will be able to turn to Thailand casinos post-legalisation, benefitting the country’s economy in more ways than one.
