The private sector has applauded the government’s extensive plan to develop a comprehensive entertainment complex, featuring casinos as a key component. This initiative is recognized for its potential to significantly enhance domestic tourism and boost the economy once operational.
Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, called on the government and relevant authorities to carry out detailed studies and broaden public engagement.
He stressed the necessity for careful planning, considering that the primary purpose of these casino-inclusive entertainment centers is to elevate tourism.
He pointed out that in some nations, casino-driven entertainment venues have generated revenue surpassing 1 trillion baht.
Additionally, ASEAN countries such as Singapore, Vietnam, the Philippines, Cambodia, Laos, and Myanmar earn between 5 billion baht and over 100 billion baht from these venues, leading to lost revenue opportunities for Thailand.
At the same time, an entertainment complex is not solely focused on gambling but also relies on effective management. For instance, many visitors to Macau are drawn more by the entertainment offerings than by the gambling itself.
The establishment of such complexes also serves as a means to regulate illegal gambling operations while promoting awareness and providing information to discourage children and young people from participating in gambling activities.
“I see both positive and negative aspects to this policy,” Mr. Thanavath remarked.
“Society still needs more discussions, understanding, and state-led preventive measures to mitigate any negative impacts, as government studies found that in South Africa, when a large proportion of the population participated in entertainment complexes, it led to problems.”
“Therefore, the proportion of foreign visitors to these complexes should be higher than that of locals,” he added.
This well-researched information, beneficial to society, ought to be extensively shared through seminars and other communicative methods, he added.
Bill Barnett, managing director of C9 Hotelworks, expressed that Thailand should market these entertainment complex investments as a destination, much like Singapore’s Marina Bay Sands, rather than just a gambling hub.
Mr. Barnett highlighted that such a development, including hotels and conference facilities, could significantly enhance the MICE sector, offering more opportunities to attract international visitors.
Siradej Donavanik, vice-president of development at Dusit Hotels & Resorts, supported the development of entertainment complexes and the legalization of casinos to boost tourism and the economy.
He emphasized the importance of the government’s role in effectively overseeing and regulating these projects to ensure public benefits and prevent issues similar to those seen in unregulated cannabis legalization.
Krungsri Securities (KSS) stated that the enactment of the Entertainment Complex Business Act is favorable for the Stock Exchange of Thailand (SET).
The market previously expressed concerns that the project might face obstacles following the Council of State’s identification of six critical issues with the proposed legislation, according to a KSS research note.
Koraphat Vorachet, head of KSS’s Research Division, mentioned that the opening of these complexes could draw 20 million international tourists to Thailand annually, substantially benefiting tourism-related sectors.
Stocks identified as primary beneficiaries of this policy include Airports of Thailand (AOT), skytrain operator BTS Group Holdings (BTS), VGI, CP All (CPALL), retail supply chain operator Berli Jucker (BJC), and Bangkok Airways (BA).
Other stocks poised to gain are hotel stocks like the Erawan Group (ERW), Central Plaza Hotel (CENTEL), and Minor International (MINOR), as well as the budget airline Asia Aviation (AAV).
KSS noted that the projects require an investment of US$8 billion (approximately 280 billion baht) and construction is anticipated to last 5-10 years, with the potential to generate annual tax revenues of $1.7-2.4 billion (59-84 billion baht).