The private sector has hailed the government's comprehensive entertainment complex development plan, which crucially includes casinos, highlighting its potential to significantly boost domestic tourism and the economy once it becomes operational.
Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, urged the government and relevant authorities to conduct a comprehensive study and facilitate wider public consultations. He emphasised the importance of thorough preparation, given that the primary goal of such casino-based entertainment complexes is to boost tourism.
He noted that casino-based entertainment complexes in some countries generate revenues exceeding 1 trillion baht. Moreover, Asean countries such as Singapore, Vietnam, the Philippines, Cambodia, Laos and Myanmar earn from 5 billion baht to over 100 billion baht from such complexes, causing Thailand to lose potential income.
At the same time, an entertainment complex is not solely about gambling but requires effective management. For example, people visiting Macau often go for the entertainment rather than gambling. However, the establishment of such complexes is also a way to regulate illegal gambling operations and involves managing and disseminating information to discourage children and young people from engaging in gambling activities.
"I believe this policy has both pros and cons. Society still needs more discussions, understanding and state-led preventive measures to mitigate any negative impacts, as government studies found that in South Africa, when a large proportion of the population participated in entertainment complexes, it led to problems. Therefore, the proportion of foreign visitors to these complexes should be higher than locals," Mr Thanavath noted.
In any case, this thoroughly researched information, which is beneficial to society, should be widely disseminated through seminars and other forms of communication, he said.
Bill Barnett, managing director of C9 Hotelworks, said Thailand should develop and promote entertainment complex investments as a destination, not a gambling complex in the same way that Marina Bay Sands became such a destination in Singapore.
Mr Barnett said such a complex, which includes hotels and meeting facilities, could help boost the meetings, incentives, conventions and exhibitions (Mice) segment, creating more opportunities for Thailand to draw visitors.
Siradej Donavanik, vice-president of development at Dusit Hotels & Resorts, said the company supports the move of developing entertainment complexes and legalising casinos to promote tourism and the economy.
He said what is crucial is how the government can effectively control and regulate the projects for public benefit and avoid causing problems, as seen in cannabis legalisation without regulation.
Krungsri Securities (KSS) said the passage of the Entertainment Complex Business Act is positive for the Stock Exchange of Thailand (SET).
Previously, the market was concerned that this project would hit a snag after the Council of State raised six points of concern regarding the draft law, KSS analysts said in a research note.
Koraphat Vorachet, head of KSS's Research Division, said the opening of the entertainment complexes could attract 20 million international visitors to Thailand each year, giving a significant boost to tourism-related industries.
Stocks listed as the major beneficiaries of this policy are Airports of Thailand (AOT), skytarin operator BTS Group Holdings (BTS), VGI, CP All (CPALL), retail supply chain operator Berli Jucker (BJC) and Bangkok Airways (BA).
Other stocks that would benefit include hotel stocks such as the Erawan Group (ERW), Central Plaza Hotel (CENTEL), and Minor International (MINOR), as well as the low-cost carrier Asia Aviation (AAV).
According to KSS, the complexes require capital investment of US$8 billion (about 280 billion baht), with construction set to take 5-10 years to complete. The project is expected to generate tax revenue of $1.7-2.4 billion (59-84 billion baht) per annum.
