A new report by business and economy analysis firm Future Market Insights says that the global casino hotel markets will grow strongly in the coming decade, with broad-based growth expected from markets as afar as the United States, mainland China, Macau, Australia, South Korea and Singapore.
The report says that the market will grow steadily at an annualised rate of 4.7 pc CAGR over the next 10 years, says FMI in its latest report, which says that customers prefer casino hotels as they find lodging, boarding and entertainment, in the form of gambling, under one roof, making it very convenient for the customers as they can enjoy all benefits without moving to different places for different services that they need.
The report goes on to say that the casino hotel industry has witnessed a phenomenal growth over the last few years, enabling the sectoral investors to invest and establish many luxurious casino hotels in several prime regions.
For the investors, a casino-hotel is a good bet for investment as it has multiple revenue streams on the various services and amenities provided there, such as food, beverages, entertainment, gaming and casino, dining, rooms and lodging and get-together facilities. The report adds that there are many casino hotels across the globe and these are taking over the lodging and hotel industry in terms of tourist preference at a faster rate.
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The trend of the casino hotel industry is to make available different facilities in the luxury tourism sector to attract more customers and ensure a longer stay by these customers by offering an enjoyable experience at the casino hotel property. FMI says that the industry is perceived as glamorous, which adds to its pull for customers and investors alike. The growth of the casino hotel industry is generally seen in spring and summer seasons rather than winter as people prefer travelling during favourable weather conditions, adds the report, citing that a large share of the clients opting for casino hotels often belongs to the older customers.
Growth factors behind casino-hotel industry
FMI says that there are many aspects that contribute to the exponential growth of the casino hotel industry. First is that it is generally welcomed by the destinations as the industry plays a major role in the economic development of a country. Moreover, it provides a wide range of career opportunities such as supervisors, gaming managers, slow machine supervisors, security guard positions and gaming dealers, which adds to its appeal.
It also provides opportunities for employment in other areas such as accounting, food services, advertising, event production and management, and so on. FMI says that in most cases the personnel do not require any additional qualifications for these posts and hence people find it even more convenient to earn from the glamorous world of the casino hotel industry.
The casino hotel industry has a strong record of internal promotions of their workers and staff based on their performance and this adds to the popularity aspect of this industry. Another reason behind the welcome that the industry finds in destinations is that as it is considered a ‘sin’ industry, it is heavily taxed and hence contributes generously to the local exchequers by the way of taxes on various services and products sold to the customers.
In terms of geographical areas where the industry has traditionally been strong or is growing the fastest include the United States, Macau, Australia, China, Singapore and South Korea. The emerging economies in the Asia Pacific region reflect high growth potential. Of these, the US is by far the biggest market for the casino hotel industry, says FMI.
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