Thailand eyes global top three spot in entertainment complexes
Bold proposal fuels hopes for economic revival and global investor interest
The Ministry of Finance is positioning the development of entertainment complexes as a new economic driver, aiming to attract investment and tourism worth hundreds of billions of baht.
Deputy Finance Minister, Chulaphan Amornvivat, announced yesterday, June 4, that Thailand could become the third-largest entertainment complex hub globally, following Las Vegas and Macau, within five to 10 years.
Chulaphan highlighted that while Thailand has consistently been a top tourist destination since 2010, with a dip during the Covid-19 pandemic, it has recently regained its position among the world’s top 10 tourist destinations. Nonetheless, the spending per tourist has not increased significantly, indicating a need to improve tourism revenue through innovative opportunities.
The draft of the Entertainment Complex Act has advanced beyond the Cabinet’s approval and is awaiting inclusion in the agenda of the House of Representatives for their first meeting session from July 3 to October 30. Once the law is enacted, a committee headed by the Prime Minister will be established to oversee the Entertainment Complex project, alongside a regulatory body and a committee to assess the project’s feasibility and investment value.
Chulaphan noted that with only two years left for the current Parliament, if the draft is not completed within this term, it will need to restart in the next session, potentially missing a significant opportunity. Therefore, efforts will be made to finalise the legislation within the current government’s term.
Discussions with global investors in the entertainment complex sector indicate confidence that Thailand could become the third-largest entertainment complex destination globally. If realised, this project could significantly boost the Thai economy.
Entertainment complexes
Thailand’s strengths in natural and cultural tourism, coupled with its existing infrastructure and a tourist base of over 30 million, bolster its competitiveness. The inclusion of casinos within these complexes is seen as essential for attracting investment, as merely having sports venues would not suffice.
Sukhasit Srichomkwan, Deputy Secretary General to the Prime Minister, stated that the government is advancing its tourism strategy by targeting year-round tourism and introducing new attractions. Strategies include hosting global events like Formula One and promoting health and wellness tourism, alongside man-made destinations such as cruise terminals and entertainment complexes.
The Entertainment Complex is a key strategy in enhancing tourism, driving economic growth, job creation, and year-round income, eliminating low seasons. Projections suggest an increase in tourist spending to approximately 22,300 baht (US$685) per trip, with a 5% to 20% annual rise in tourist numbers, and a 13% increase during low seasons.
Sukhisit mentioned that Thailand is not the first to consider such complexes, with the global entertainment complex market estimated at 54 trillion baht (US$1.66 trillion) annually. For instance, Vietnam, South Korea, and Singapore generate significant annual revenues from their entertainment complexes. Thailand is expected to generate 39 billion baht (US$1.2 billion) annually from these projects.
The proposed casinos will have strict legal and international standards, including player registration and tracking and social responsibility initiatives like scholarships and CSR activities. Construction will utilise local materials and employ Thai workers, potentially increasing GDP by 0.2 to 0.8%, with tourism revenue expected to rise by 100 to 200 billion baht (US$6.14 billion), reported KhaoSod.
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