Thailand looks to build casinos to attract tourist dollars

Thailand is working on a new game plan to boost foreigner arrivals and increase tourism spending: casinos.

The strategy has worked for Macao — which has overtaken Las Vegas as the world’s largest gambling hub — and Singapore, with two successful 14-year-old casinos.

If Thailand’s draft bill gets passed into law, the country could be Macao and Singapore’s largest competitor by the end of the decade, industry watchers told CNBC.

“They’ve seen what building casinos did for Singapore, and the power of the gaming dollar in Macau. If Thailand does it right, this could boost its appeal as a tourist destination,” said Ben Lee, managing partner of IGamiX Management and Consulting.

Tourism is a key driver of Thailand’s economy, but growth remains sluggish. Tourist arrivals have not fully rebounded from the Covid-19 pandemic, and that will unlikely happen until Chinese travelers — in particular — return in full force.

Southeast Asia’s second-largest economy welcomed around 28 million foreign visitors in 2023, far from the almost 40 million tourists in 2019.

“Thailand is a tourism juggernaut, it’s the one tourism market in the region everyone fears. But the country is still struggling to recover its economy from the pandemic” said Lee.

In June, former Thai Prime Minister Srettha Thavisin ordered the drafting of a bill to legalize entertainment complexes in the country, a move that could boost tourism spending, increase employment, and revive the economy again.

Apart from state lottery or licensed horse betting, gambling is currently illegal in Thailand. 

Although Paetongtarn Shinawatra has now replaced him as Thailand’s new prime minister, experts said the bill will still likely be carried out.

“Thailand’s political situation has been fluid, but that will unlikely take momentum away from plans to build casinos,” Maybank Investment Bank analyst Yin Shao Yang said.

If the law gets passed, Thailand’s casinos could generate 187 billion Thai baht ($5.5 billion) in revenues, or 1% of the country’s GDP, according to Maybank research.  

The Thai economy grew 1.9% in 2023, and is expected to grow 2.7% this year, the finance ministry said.

“Tourism in Southeast Asia is competitive, and countries in the region are looking at how they can position tourism as a pillar of economic diversification,” said Gary Bowerman, director of travel and consumer intelligence firm Check-in Asia.

“Legalizing casinos will give Thailand a stronger positioning going forward, simply because its tourism economy is already so large and has so many visitors,” Bowerman said.