Agoda CEO Highlights Boost to Tourism from Thailand’s Legal Casino Development

November 7, 2024 Thailand Casino & Hotel

Omri Morgenshtern, the CEO of global online travel agency Agoda, shared his optimistic views on the potential impact of Thailand’s first legal casinos. During a November 6, 2024 media event in Bangkok, Morgenshtern told Reuters that he believes that the development of casino resorts could significantly enhance Thailand’s tourism industry. His comments come as the country is on track to achieve a record number of visitor arrivals in 2025, with a projected target of 40 million tourists.

Morgenshtern emphasized that casinos are more than just gambling hubs—they create an entire entertainment experience, which is key to drawing visitors. He pointed to major global destinations like Macau and Las Vegas as examples, where casinos are typically part of a larger package that includes luxury hotels, top-tier restaurants, entertainment shows, and a variety of leisure activities. According to Morgenshtern, this comprehensive experience is something that could be a game-changer for Thailand’s tourism sector.

“It’s the experience around gambling,” Morgenshtern said. “Think about Macau and Vegas—usually it comes with crazy shows, food, and amazing hotels.” He added that the appeal of casino resorts lies not just in the gambling itself but in the overall atmosphere they create. He also noted that such resorts do not experience the same seasonality as other types of tourist attractions. While places like amusement parks or museums may see fluctuations in visitor numbers depending on the time of year, casino resorts can operate year-round, making them a valuable asset to boost tourism even in Thailand’s off-peak seasons.

In addition to casinos, Morgenshtern suggested that Thailand could further enhance its tourism appeal by adding attractions like amusement parks and family-oriented activities. These additions, he argued, would provide more options for travelers, particularly those with children, ensuring that Thailand becomes an even more attractive destination for a wide range of tourists.

Thailand is aiming for 40 million visitors in 2025, a target that, if achieved, would surpass the previous record of 39.9 million tourists set in 2019. As of the first 10 months of 2024, Thailand has already seen a 29% increase in foreign visitors compared to the same period last year, with the number of arrivals on track to reach 36.7 million by the end of 2024. Morgenshtern is confident that the country will meet or even exceed its target for 2025, barring any unforeseen disruptions.

“Unless there’s an external event that we can’t foresee and unless we do something wrong, I think there’s a chance we’ll cross the 2019 number of tourist arrivals into Thailand,” Morgenshtern told Bloomberg. “Our data suggests that Thailand is very addictive. About 46% of travelers that we see are coming for a second or third or fourth time.” This return rate reflects the country’s growing popularity as a travel destination, with many visitors returning for repeat vacations due to the diverse offerings and vibrant tourism landscape.

Thailand’s government is already making moves to bring casinos to the country. The “entertainment complex” bill, which is expected to pass through parliament early next year, will lay the legal groundwork for the development of casino resorts. The bill aims to create integrated entertainment venues that could include a variety of attractions, such as hotels, restaurants, nightclubs, and, of course, casinos. There is currently no decision on where these complexes will be located, but suggestions have included up to five integrated resorts (IRs), with up to three of them possibly located in Bangkok.

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The draft bill stipulates that those awarded licenses to operate the resorts would initially receive a 30-year license, which would be subject to review every five years. The bill also outlines 10 different types of businesses that could be part of the integrated entertainment venues. These include department stores, hotels, restaurants, nightclubs, stadiums, yacht clubs, swimming pools, amusement parks, areas for promoting Thai culture, and other types of businesses as specified by the Policy Committee.

One of the key elements of the proposed bill is the introduction of an entry levy for local residents. The draft legislation suggests that Thai nationals will be required to pay an entry fee of no more than 5,000 baht (US$148) to access the casino resorts. This levy is expected to help manage the flow of visitors and ensure that the casinos remain focused on attracting foreign tourists while also limiting potential negative social impacts.