Ch.11: Economical Impact - How Gaming Entertainment converges with Hospitality Industry

How Gaming Entertainment converges with Hospitality Industry in terms of its Economical Impact

a.       positive impact

- The increased overall tourism revenue

The more entertainment are provide, the more tourists can be attracted to the country. As tourists not only spend money on those entertaining industry, they also shopping and visiting other attractions. Many other industries can be benefited from the increased number of visitors and finally the overall tourism revenue will boost.

-  The multiplier effect to other sectors of hospitality industry and other related industries

Tourism not only gains revenue in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is the multiplier effect which money spent by a tourist circulates and grows through different sectors of a country's economy.

For example, the tourists’ money spent in a hotel directly benefits the hotel, but it also indirectly helps food suppliers because the demand increased and those suppliers may buy more from local farmers.

-   The increased tax revenue of government 

The more revenue the gaming industries gain, the more amount of tax they need to pay to government. For example, a high percentage of Macao government tax revenue comes from the tax of casinos. 





 

b.      negative impact

-   Economy easily be affected by other countries

If the economy and tax revenue rely on the tourism, the ability of self-controlled economy will be lower. The bad impact is the country’s economy is easily be fluctuated by the economy of the major visitors’ countries and even the global economy.