Thailand's Entertainment Complexes: Avoiding Japan's Integrated Resort Nightmare
Tightrope Act in Asia: Balancing Act of Tensions
Thailand's entertainment complex initiative stands at a crossroads, the consequence of decisions to come determining its success or failure. Contrary to popular belief, legislative approval isn't a given; history has demonstrated this. Let's look at what happened during Japan's Integrated Resort (IR) process to understand the challenges and opportunities that Thailand faces.
Lessons Learned from Japan's IR Fiasco
Starting in late 2016, over two dozen global operators expressed interest in developing IRs across Japan. However, only four consortia bid for two locations, with MGM's Osaka proposal the sole choice of the central government. What went wrong?
The failures stemmed from an inefficient bidding system, poor communication lines between industry stakeholders, and the authorities' inability to educate the public effectively about IRs. The result was public disapproval which effectively crippled the whole project.
Thailand's Opportunity
Thailand's entertainment complexes, when done right, have the potential to create some of the most popular mass-appeal tourism attractions the world has ever seen. To achieve this, messaging is vital. The government and other stakeholders must offer genuine insight into what an entertainment complex is, how it works, and what benefits it offers.
Emulating Successful Strategies from Singapore, Las Vegas, and Macau
Applying lessons learned from other jurisdictions can help Thailand achieve positive results while minimizing potential harms. In Singapore, for instance, casinos are regulated stringently, offering a broad audience appeal through integrated resort models, and implementing social safeguards like entry levies for citizens and permanent residents. Las Vegas and Macau also focus on diverse entertainment, corporate social responsibility, and regulatory compliance.
Thailand's Path to Success
- Integrated Resort Model: Adopt a holistic resort model encompassing casinos, entertainment, shopping, and cultural attractions to cater to diverse visitor interests and boost overall economic benefits.
- Regulatory Framework: Implement a robust framework to prevent issues like illegal gambling, ensure transparency, and comply with anti-money laundering laws.
- Social Safeguards: Consider implementing entry fees or restrictions for locals to curb excessive gambling.
- Investment and Partnerships: Attract global operators with favorable investment conditions and collaborate with experienced industry players.
- Tourism Diversification: Strengthen Thailand's appeal by promoting diverse tourism offerings beyond just gaming.
Collaborating authentically and openly, involving all stakeholders, including the 72 million Thai citizens, will be key to exploiting Thailand's tremendous potential in the entertainment complex industry.
- To avoid the mistakes made during Japan's Integrated Resort (IR) process, Thailand should ensure smooth communication between industry stakeholders and the authorities, and provide effective public education about entertainment complexes.
- Thailand's entertainment complexes have the potential to rivals those in popular tourist destinations like Singapore, Las Vegas, and Macau by adopting integrated resort models, implementing robust regulations, and considering social safeguards.
- By emulating successful strategies such as strict regulation, integrated resort models, corporate social responsibility, and regulatory compliance, Thailand can create popular mass-appeal tourism attractions that benefit its economy and lifestyle.
- The adoption of a holistic integrated resort model that includes casinos, entertainment, shopping, and cultural attractions will help cater to diverse visitor interests and boost overall economic benefits for Thailand.
- To ensure success in the entertainment complex industry, Thailand should collaborate with global operators and experienced industry players, attract investment with favorable conditions, and diversify its tourism offerings beyond just gambling.
