Thailand, Will It Hit the Jackpot with a Casino? “Construction Will Generate Over 7 Trillion Won in Revenue”

Expert: “Macau and Singapore emerge as biggest competitors”

▲ Boat operators wait for customers on Pattaya Beach in Thailand. Pattaya (Thailand)/EPA Yonhap News

As Thailand considers building a casino to boost tourism revenue, estimates suggest it could generate more than 7 trillion won in revenue if pushed ahead.

Experts predict that if these plans go ahead, it could become Macau’s biggest competitor to Singapore by the end of 2020.

According to CNBC on the 1st (local time), Thailand’s tourism industry is a key driver of the national economy, but growth is still sluggish. Tourist arrivals have not recovered since the COVID-19 outbreak.

In fact, Thailand, Southeast Asia’s second-largest economy, received about 28 million foreign visitors last year, far below the pre-pandemic level of about 40 million in 2019.

“Thailand is a tourism powerhouse, but its economy is still struggling to recover from the pandemic,” said Ben Lee, managing partner at iGemix.

In the midst of this, casino construction has emerged as a new alternative to revive the tourism industry. In June of this year, former Thai President Sreta Thavisin ordered the drafting of a bill to legalize entertainment complexes in the country, with the aim of increasing tourism spending and revitalizing employment and the economy.

Gambling is currently illegal in Thailand, apart from state lotteries and licensed horse betting.

Even with the new prime minister, Patongtan Shinawatra, experts say the bill is still likely to be implemented. “The political situation in Thailand is fluid, but it is unlikely to take away momentum from the casino construction plan,” said Insa Oyang, an analyst at Maybank Investment Bank.

According to a Maybank survey, Thai casinos are expected to generate revenue of 187 billion baht (7.33 trillion won), equivalent to 1% of the country’s GDP.

“They have seen the effect of building casinos in Singapore and the power of Macau’s gaming dollar,” said Lee Partner. “If Thailand gets this right, it can increase its attractiveness as a tourist destination.”

“Legalizing casinos would put Thailand in a stronger position because they already have a very large tourism economy and a lot of visitors,” said Gary Bowerman, Check-InAsia’s director.