How Gaming Entertainment Converges With The Hospitality Industry

Posted on December 2, 2013 Updated on December 2, 2013

Economic Impact

Positive:

1. Boost the tourism development

The gaming entertainment can be one of the source to attract the tourist visit the city or countries. Take Macau as example, after the development of gaming industry in Macau, the number of tourists had increased for three times in the recent twenty years. It can help the local economic development as well like the souvenir trade, food and hotel industry.

2. Increase the tax revenue of government

Since the tax charges on gambling industry are high, it can become a stable and important revenue center of the government. This ensures the tax income of government and enable them provide better welfare to the citizen like Macau implemented $6000 Wealth Partaking Scheme. According to official statistics, gambling taxes form 70% of Macau’s government income.

3. Increase the job opportunity

The gaming entertainment converges not only can increase the employment of the gambling industry, but also the other such as hotel and food industry. Just like we mention above, the gaming entertainment can help to boost the tourism development, which can benefit on the local business and provide job opportunity to the local citizen.

4. Multi- effects on the economic

The tourist spending on the countries can create the multiplier effects on the economic. A dollar spent by a tourist in a destination casino may fund a local supplier providing food and beverages to the casino, which then spends that income on other goods and services in the local economy, thus multiplying the effect of the first dollar spent.

Negative:

1. Too rely on the gaming-related industry

It is unhealthy and risky for the economies too rely on the gambling business. As the nature of gambling business is not susceptible to technological advancement or productivity growth, like Macau is still dependent on the prosperity of other Asian economies, especially that of Hong Kong. It is better to have a diverse economic development.

 

References:

(Boost the tourism development)

-Social and Economic Impact Study into Gambling in Tasmania

http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/LookupFiles/Soc-Economic-Impact-Study-Vol1.pdf/$file/Soc-Economic-Impact-Study-Vol1.pdf

(Increase the tax revenue of government)

-Bloomberg, Macau Casinos Top Las Vegas as Adelson, Wynn, Battle Stanley Ho, 1 March 2007

-“Main casino operators in Macau” Travel & Gamble Online Magazine

http://travelandgamble.org/las-vegas-and-macau-casinos-revenue/

Journal of Macau Gaming Research Association

Click to access %e4%b8%ad%e5%a4%ae%e7%82%ba%e4%bd%95%e5%8f%8d%e8%a6%86%e5%bc%b7%e8%aa%bf%e4%bf%83%e9%80%b2%e6%be%b3%e9%96%80%e7%b6%93%e6%bf%9f%e9%81%a9%e5%ba%a6%e5%a4%9a%e5%85%83%e7%99%bc%e5%b1%95%e7%9a%84%e9%87%8d%e8%a6%81%e6%80%a7.pdf

 

Social Impact

Positive:

1. Better Welfare

Gaming entertainment brings huge amount of betting duty to government, so government can have better planning on the financial budget and consider providing better social welfare. For example, only in September 2013, Macau government got MOP11,601.5millions. So, the government has much capital to improve the hospital service, deducting electronic fee and education, etc. Or even directly send the money back to citizens, like Macau government. Macau government started to send the money back to its citizens since 2008.

2. Better Infrastructure

Because of the gaming entertainment development, comprehensive infrastructure is a must. So, the transportation network is expanded to every corner of the city and electronic supply is stable. That is to facilitate the development of tourism to attract more tourists.

3. Cultural Exchange

Gaming entertainment drives the development of tourism. People travel to different countries and experience different cultures. It is an opportunity to meet friends all around the world and have cultural exchange.

Negative:

1. Bankruptcy Increase

Gambling is highly related to bankruptcy. Gambling may bring you money but there is higher chance that you give all your money to casino. “NO PAY NO GAIN”! However, many people still think that they can be millionaire by gambling. They keep betting. As a result, they withdraw all their money and go bankrupt. Finally, they got nothing. Therefore, addicted to gambling causes bankruptcy.

2. Lower Working Incentive

Since some people think gambling can make them to be millionaire, they abandon their jobs and put gambling as their full-time job. So, they loose the incentive to work and stay in casino for whole day. This problem also affects the development of the city.

3. Crime Rate Increases

There are more incidents related to alcohol-related crimes and robbery. People are drunk in the hotel or other entertainment places. They are unconscious and may cause assault, sexual harassment and drunk driving. So, social problems increase and safety issue become a concern.

 

Reference:

Betting Duty in Macau

http://www.dsec.gov.mo/TimeSeriesDatabase.aspx?KeyIndicatorID=14

Employment research on Aug to Oct in Macau

http://www.dsec.gov.mo/Statistic/LabourAndEmployment/EmploymentSurvey/EmploymentSurvey2013M8.aspx

Successful Strategies of Operating Gaming Entertainment

Posted on December 1, 2013 Updated on December 2, 2013

1. Architecture Design

The impact of architecture and interior design on consumer spending habits is subject to lengthy discourse in retail, anthropology and psychology. The outlook of building can attract people to visit, such as hotel and casinos are built with unusual outlook. For example, The Venetian Macao-Resort-Hotel in Macau and The Marina Bay Sands hotel in Singapore, they are being the good place for gambling, tourism and entertainment.

2. The floor plan of casino

Casinos tend to be designed on a single level with spacious area. For example, the playground layout pioneered in Las Vegas is based on the principles of moving water, green spaces and natural light – encouraging players to get moving, explore, and spend more money by virtue of curiosity and trying new things. Also, they need to walk along the gambling area before finding the service and facilities they want.

3.     Creating the right atmospherics

The atmosphere must be a “timeless space. You cannot find any clock in casino. Also, the gaming operators offer a comprehensive entertainment experience in the form of comedians and musicians to restaurants, theatre shows and theme parks. Catering and hospitality services in the form of buffets and beverage rounds create a complete living environment. Therefore, customers may want to stay in gaming and do not want to leave!

4.     Transportation service

Customers view convenience as an important element. Therefore, many gamming operators offer transportation service, such free shuttle bus, to bring customer to casino. For example many casinos in Macau arrange shuttle bus to pick up customer.

5.      Promotion

VIP program of gaming operators can generate customer’s loyalty. They offer customers, who are enjoying their service, a VIP card with benefits. This provides the incentives to encourage customers to return in the future. Also, the operator would hold some special event monthly to attract visitors and encourage them to come back again. For example, Customers may win $1,000,000 cash if they travel by their express. It attracts many customers go to play in the Sands Macau.

References:

Architecture Design

http://www.livecasino.co.uk/resource/casino-design/

Transportation service

http://www.citsmacao.com/en/macau-news/mgm-macau-shuttle-bus-schedule.html

Promotion

http://www.livecasino.name/