Are casinos a good bet for tourism?

How the introduction of casinos in Thailand and UAE could impact the hospitality landscape

Thailand is moving ahead with ambitions to approve integrated resorts (IRs) by the end of 2025, with the country’s Cabinet approving a draft bill in January 2025 that seeks to legalise casinos. 

Plans for five IRs were given unanimous approval in March 2024 by a Thailand parliamentary committee with Singapore’s own IR experiences being cited as an example of the potential benefits.

Thailand’s decision comes as part of a broader strategy to boost tourism revenues and diversify the country's economic base.

"Integrated resorts will serve as a new magnet for high-value tourists and investors, propelling Thailand's economy to new heights," said Prime Minister Srettha Thavisin.

JP Morgan estimates that Thailand’s IRs could generate up to US$5 billion per year in gross gaming revenue (GGR), adding up to 1% to the country’s GDP.

Citigroup says that number could be more than US$9 billion, making Thailand the world's third-largest gaming hub after Macau and Las Vegas.

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When it comes to tourist arrivals, Thailand’s Finance Ministry anticipates a 5 to 10% increase, leading to a 13% rise in overall tourism revenue.

The developments have the potential to create thousands of jobs and generate significant tax revenue.

Singapore's experience with IRs offers a compelling case study. Since opening Marina Bay Sands and Resorts World Sentosa in 2010, the city-state has seen a marked increase in tourism numbers and spending.

Marina Bay Sands, operated by Las Vegas Sands Corp, has become an iconic landmark and a major draw for both leisure and business travellers.

Marina Bay Sands, Singapore

This significant shift in Thailand's approach to gaming and hospitality, follows a similar move in the UAE and the construction of the country’s first casino in Ras Al Khaimah (RAK).

RAK is set to open its first integrated resort in 2027, developed by Wynn Resorts. Marjan, the master developer in Ras Al Khaimah, partnered with Wynn Resorts for this landmark project. 

The 1,542-key Wynn Al Marjan Island will include 22 restaurants, lounges and bars is located on Al Marjan Island, a four-island archipelago off the coast where much of RAK’s tourism development is taking place.

Abdulla Al Abdooli, CEO of Marjan, said: “This integrated resort will elevate Ras Al Khaimah's tourism proposition, attracting visitors from around the world and contributing to the emirate's economic growth."

According to a report by Colliers International, the Wynn in Ras Al Khaimah could attract 5.5 million tourists by 2030. The emirate welcomed a record 1.28 million tourists in 2024.

Wynn in Ras Al Khaimah

Thailand's plans for IRs are expected to follow a similar model, combining casino facilities with luxury hotels, convention centres, theme parks, and high-end retail.

Major international casino operators, including Las Vegas Sands, MGM Resorts, and Genting Group, have expressed interest in Thailand's market.

"We see great potential in Thailand and are excited about the possibility of bringing our world-class entertainment and hospitality expertise to this vibrant market," said a spokesperson for MGM Resorts International.

Concerns have been raised about potential social impacts of these integrated resorts. To address these, the Thai government says it is implementing strict regulations on local gambling and will emphasise the non-gaming attractions and benefits of the resorts.

More recently, opposition groups have claimed there will be too much focus on gaming rather than wider entertainment and tourist attractions, with initial plans for hotels and conference facilities being downgraded.

"Our focus is on creating a holistic entertainment experience that complements Thailand's rich cultural offerings,” said Tourism Minister Phiphat Ratchakitprakarn. “We're not just building casinos; we're developing world-class destinations that will enhance our tourism product." 

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