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NewsAsia, 17 Nov 04
Economic gains from casino may be
exaggerated, says expert at forum
SINGAPORE: Economist Winston Koh, an associate professor from the
Singapore Management University, says a top destination casino-resort
can add at least one percent to two percent to Singapore's GDP.
Singaporeans wager over $6 billion annually - gambling on 4-D, horse-racing,
Toto, soccer, slot machines and the Singapore Sweep. $2 billion is
also lost every year to overseas casinos - as over 1,000 Singaporeans
flock to cruise ships, Genting, Macau, Australia and even Las Vegas
and London. Experts say if Singapore does decide to build its own
casino-resort, it'll not only stem this 'leakage' to overseas casinos,
but also rejuvenate the tourism industry and entertainment scene.
But one economist warns against exaggerating the economic benefits
of the casino project. Sanjay Mathur, executive director of UBS AG,
says there is also a risk of 'cannibalisation' of existing services
at the expense of the hotel industry. Globally, stand-alone casinos
in metropolitan areas suffer trade diversion - that is spending on
casinos increases at the expense of spending on other entertainment
activities. A casino may also offer cheap hotel accommodation and
resort facilities so as to attract gamers to its gambling activities,
leading to lower overall room rates at other hotels.
Experts also say that casinos rely heavily on the local population
to stay viable - with only some exceptions like the Atlantic City
resort in the Bahamas. One resort operator, Ronald Tan of 1 Worldhotels
Limited, feels Singapore has the capability to build the world's first
casino entry-screening system, by leveraging on its technological
advances like biometric systems. He also suggests that the government
compels the casino operator to commit 1% of its revenue to a fund
that could benefit social causes, so that Singaporeans could enjoy
the economic spin-offs of a casino.
The social sector, however, says that should Singapore go ahead with
its casino project, it'll need to quickly train social workers to
cope with the social impact. Currently, there're only about 1o to
15 counsellors trained in gambling addiction. The experts were speaking
at a forum on the Singapore casino proposal. The forum was organised
by the Institute of Policy Studies and attended by some 200 top brains.
- CNA |
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