The Impact and Evolution of Integrated Resorts in Thailand
Integrated resorts (IRs), often referred to as entertainment complexes (ECs) in Thailand, have significantly transformed tourism, destination branding, the economy, policy development, and society. These developments are not unique to Thailand; they mirror similar processes observed in other countries that have introduced ECs. In most cases, the introduction of such complexes has led to a continued expansion of these facilities, highlighting their long-term significance.
The discussion surrounding the legalisation of commercial gaming and the introduction of ECs in Thailand involves several key considerations. These include cost-benefit analyses—both economic and social—taxation and fees, public policies, potential customer markets, types of gaming and non-gaming activities, tourism diversification, and master planning. The list of factors to consider is extensive, and it is expected that new issues will emerge over time as the industry evolves.
The physical presence of ECs can be a striking first impression for visitors, particularly in cities like Las Vegas, Macao, Singapore, and the Philippines. However, the path to casino legalisation or liberalisation varies across different destinations. Even in well-established ECs locations, discussions about policy and tourism challenges remain ongoing, as these developments lead to broader transformations in tourism and the economy. This includes the revitalisation of landscapes and small businesses around ECs.
In some instances, ECs have developed into clusters, such as the Las Vegas Strip and Macau’s Cotai Strip, which have become destinations in their own right. At the heart of these clusters are ECs that bring expertise, experience, and capital to create and drive multiple non-gaming options. These include events, entertainment, concerts, trade shows, sports, and retail, all of which contribute to increased regional and international visitation.
The Debate: Are ECs Good or Bad?
The legislation and development framework for casinos and ECs is becoming increasingly common. Perspectives on whether ECs are beneficial or problematic vary depending on who is consulted. Stakeholders such as government departments, political parties, non-profit organisations, casino operators, investors, local communities, and international hospitality brands all have different viewpoints. Each group brings its own set of interests and concerns, making the debate complex and multifaceted.
It is essential to monitor, measure, and respond to these sentiments when integrating ECs into the landscape. For example, resident impact studies have shown that perceived benefits and support can differ within the community. One outcome of this variation is the need for a resident communication campaign. ECs are not only built for international visitors but also provide employment opportunities and small business growth for the local community. They serve as spaces where both residents and domestic tourists can enjoy dining, shopping, concerts, and entertainment.
Thailand has the opportunity to learn from various referral cases to fine-tune its approach and create distinctive ECs. A regulatory framework designed to maximise benefits while minimising costs could help ensure the success of these developments. Thailand is known globally for its hospitality, encapsulated in the “Amazing Thailand” tagline promoted by the Tourism Authority of Thailand (TAT). With new synergies between entertainment and other sectors of the macroeconomy, Thailand’s competitiveness may exceed expectations.
Glenn McCartney, PhD, is an Associate Professor in International Integrated Resort Management at the University of Macau. Joe Lema, PhD, is a Professor at the Harrah College of Hospitality, University of Nevada, Las Vegas, USA.
