International Gaming - Research Paper Example

In 2007, Singapore was able to generate $9.4 billion USD in tourism revenue which makes up three percent of the country’s entire gross domestic product (Research and Markets 1). This growth in tourism is sparked by the development of the National Tourist Offices operated by the government, with a variety of strategic alliances with such companies as the airline Cathay Pacific and Singapore Airlines (Riege and Perry 1294). It was only recently that the government recognized that casino gaming could represent a significant marketing opportunity to boost more international interest in tourism.

There has been significant social disparity occurring in Indonesia about the viability and economic benefits of casino gambling which has, until just recently, prevented the development of casinos as part of a new tourism philosophy. In 2011, petitioners asked the Singaporean Constitutional Court to declare certain provisions and regulations to be held unconstitutional that had, previously, prohibited gambling in any form in the country. At the same time, the government has been attempting to elicit foreign investment from major hospitality companies to develop and launch casino gambling as a means of improving its competitive marketing position internationally. This conflict stems from concern over the many low-wage citizens in the country, believing that casino gambling would detract from their quality of living. However, despite these concerns, the government and the court systems have relaxed the many strict regulations prohibiting gaming in this fashion, thereby allowing the development of the first casino gambling facility in 2012 in the city of Bintan.

The only major player in the gaming operations in Singapore is Malaysia-based Landmarks Bhd., an investment holding company operating a diverse portfolio of hospitality businesses internationally. The Las Vegas Sands, one of the Landmarks’ largest shareholders, has been integral in petitioning the Singaporean government to allow development and relax regulatory pressures denying such construction. Upon the development of the Landmarks’ gaming project, it is expected that total revenues stemming from gaming will increase 16 percent to $30.3 billion (Hin 2).

The social impact of gaming in Singapore is substantial. There is evidence that low-income citizens in the country maintain social characteristics that will ultimately lead to gambling addictions. Some have even turned to criminal behaviors as a means of sustaining this addiction, which has concerned many Singaporean citizens (Global Voices 2). These social concerns have and still continue to, conflict with the process of rapid gaming development in this growing country with much more economic influence today than in previous years.

As previously identified, there are conflicting laws associated with casino gambling in this country. The Constitution clearly prohibits gambling in any format in the country, however, representatives of the government continue to amend the Constitution and create new, regionally-based policies that seek to overturn these prohibitions. However, such amendments require intervention with voting citizens both regionally and nationally-wide, again conflicting the process of securing long-term contracts and agreements for casino development and other associated hospitality organizations devoted to promoting tourism and economic growth.

The Singapore conflicts associated with disparate laws and regulations illustrate a marked difference from U.S.-based gaming. There are very distinct and clear rules and regulations by which casino operators must abide to ensure that gaming is fair, non-corrupt, and meets with established justice protocols. For example, in Las Vegas, gaming equipment must be approved for use and tested to ensure compliance with state Commission usage demands. Singapore has, until only recently, been unable to even define the parameters of gaming and has not been able, based on research, to even establish the foundation of laws to ensure fairness and compliance in gaming technologies. Singapore should benchmark the best practices in regulating casino gaming, using support from such entities as the Las Vegas Sands, to develop a regulatory and compliance model to ensure that tourists (and locals) receive a fair and just gaming experience. The potential opportunities to exploit public relations as a marketing positioning tool are enormous if the government adopts Las Vegas’ best practice models.

It is clear that Singapore is attempting to isolate and develop new concepts in tourism in order to boost its competitive advantages against other Asian tourist destinations. The social and legal conflicts, however, continue to conflict development which only impedes opportunities to improve GDP and ensure more economic stability for the nation and its citizens. Even though the research indicated social concerns associated with potential gambling addiction by low-income citizens, the potential opportunities to expand brand presence for the Singapore tourism market would be better served by focusing on foreign tourists since they contribute so much to gross domestic product. From a marketing perspective, Singapore represents enormous opportunities to blend hospitality (such as hotels and resorts) with included casino additions so that tourists can have a more diverse travel experience. This will only lead to more effective word-of-mouth that is important for marketing purposes.