If the plans to allow casino licences and build integrated resorts come to fruition, it could be a game-changer for startups working in tourism tech in Thailand. According to Bloomberg, the nation could potentially generate a staggering USD 12 billion in revenue from this sector. Prime Minister Srettha Thavisin, while not a proponent of gambling, sees the potential for significant economic benefits through the regulation and supervision of the industry.
Statista Research projected that the travel and tourism market in Thailand will reach USD 3.467 billion in 2024, growing by 6.11% annually to USD 4.663 billion in 2029. The government expects the sector to boost the economy and create jobs if it helps create new avenues for entertainment and hospitality.
The country already has a vibrant tourism industry, where the value of the travel sector generates a gross domestic product (GDP) of THB 356 billion. The capital city of Bangkok is the leading destination for most travellers, while other areas popular with local and foreign tourists include Chiang Mai, Phuket, and Pattaya.
How can casinos boost tourism in Thailand?
Last year, international visitor figures reached 28.15 million, higher than the 2020, 2021, and 2022 figures combined. The COVID-19 pandemic negatively impacted the industry, and it took time to recover, but it has thus far brought 9.37 million tourists in the first quarter (Q1) of 2024.
The Thai government is taking steps to deliver the final Entertainment Complex Bill, which creates a platform for opening all-in-one entertainment venues. These integrated resorts comprise hotels, retail, dining, recreation, casino facilities, and other attractions to provide patrons with everything they might need. The bill also includes provisions for a Gambling Prevention fund to finance rehab services, gambling education programs, and crime-prevention tactics.
Establishing casinos helps Thai people in several ways:
Boost tourism and generate revenue
The ability to gamble on something other than horse races will bring in more visitors than ever before. Since this is the beginning of this strand of tourism, tech experts will have no choice but to innovate better solutions to track and encourage customers to spend a lot of money in the new multi-purpose establishments.
Job creation
Prime Minister Srettha Thavisin said legalising casinos would generate jobs, enable the state to earn revenue and create a mega entertainment project. As more gaming facilities open, Thai people can apply for employment.
Furthermore, Thailand would become competitive with Macau, a special administrative region of China considered a hub for gambling. Tourism technology could help hospitality experts seamlessly manage new visitors and securely store their details.
Combat illegal gambling
Speaking to Reuters, Deputy Finance Minister Julapun Amornvivat said, “We have to admit that there is illegal gambling in the country, we are trying to get rid of (it) but it cannot be wiped out, so we have to rethink and see that it is time for this.”
The underworld of gambling poses a risk to regular citizens because they may not know what they are getting into. Plus, they could wind up in debt, beholden to criminals, or, in worst-case scenarios, dead. Legalising casinos would ensure more locals and foreigners can participate safely.
Tourism tech advancement
As more tourists travel to try out the new casinos, the country needs innovative and advanced tourism tech to manage the inflows. For example, booking platforms, event management solutions, and more must be available to keep customers updated.
Impact of legalising casinos in Thailand
The setting up of all-in-one entertainment venues comes with various drawbacks. First, Thai people have been against gambling for decades, with the activity banned by law. Changing society’s outlook on what some consider a vice is complicated.
Secondly, the new legislation will face challenges and regulatory issues as the government tries to implement it as quickly as possible. The public may have concerns about safety and convenience and have questions about taxation.
Third, the gaming areas may begin drawing most of the tourists, meaning other previously popular destinations in the country will become neglected. The Bio-Circular-Green Economy (BCG) model must also be applied to foster sustainable travel. For example, stakeholders can use tourism tech to identify overcrowded destinations and shift visitors to other locations.
Fourth, as more people arrive in Thailand, the travel ecosystem must be robust to accommodate them. The government must improve the regulations, fund the travel industry, and seek foreign investors to boost the ecosystem. It has already provided visa waivers for Indians and Chinese people and recently extended visas from 30 to 60 days for 93 countries. Programs such as these will draw more visitors.
Tourism tech in Thailand needs upgrading through new technologies like artificial intelligence (AI), which can help with threat detection and safeguard devices. With all the new integrated resorts expected to have a casino as a part of their facilities, society must get used to changing laws. Ultimately, legalising casinos should benefit the nation for years to come.