How Gaming Entertainment Converges With The Hospitality Industry
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
(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
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
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