Lessons from the world – risks and failures of entertainment complexes

As Thailand looks ahead to a potentially groundbreaking project in the form of an entertainment complex, there is reason to look back and learn from the experiences of others. Several countries have already tried similar models – with both success and failure. This article highlights common risks, real-life cases where things didn’t go as planned, and what Thailand can do to avoid the same pitfalls.

Overestimated revenues and too high expectations

Many projects have started with a vision of billions in revenue and huge tourism, but reality has not always lived up to the plans. In Atlantic City (USA), large sums were invested in casino resorts, but a decline in visitors and competition from other states led to bankruptcies and mass layoffs.

Lesson for Thailand: Create a realistic forecast, focus on year-round tourism and avoid excessive gaming centricity.

Too much dependence on gambling

In some cases, the gambling element has become too dominant. Manila, Philippines, has been criticized for aggressively marketing casinos, leading to social problems, increased debt, and a lack of broader societal benefits.

Lesson for Thailand: Stick to the 10% gaming rule and set clear limits on access, monitoring, and marketing.

Foreign-directed investments without local roots

Several projects in Southeast Asia have been entirely dependent on foreign financing, particularly from China. In Laos, Chinese-controlled casino zones have created tensions over sovereignty, corruption and low local benefits.

Lesson for Thailand: Choose investors who respect Thai law and create models for local participation and tax base.

Infrastructure that doesn't keep up

An entertainment complex requires more than just buildings. In Sochi (Russia), which received billions in investments ahead of the 2014 Winter Olympics, many facilities have stood empty as neither communications, accommodation nor after-use worked.

Lesson for Thailand: Plan for public transportation, hotels, green spaces and year-round use.

Politics and legal uncertainty

Japan launched an Integrated Resorts (IR) model but was repeatedly postponed for political reasons. As a result, several prospective investors withdrew – delaying the entire development.

Several countries have also grappled with corruption scandals linked to permits, land deals and gaming licenses. In Japan, suspected bribery in IR projects has led to the resignation of politicians. In other parts of Asia, a lack of transparency has created doubts about who really benefits from investments.

Lesson for Thailand: Communicate a clear and stable policy. Changes in legislation must be transparent and predictable. Transparency and independent scrutiny of decision-making processes are crucial to building trust with both the public and investors.

Summary

An entertainment complex can be an engine for tourism and growth – but only if it is built thoughtfully. By learning from other countries, Thailand can avoid pitfalls and create a model that not only generates revenue, but also trust, jobs and sustainable development.

Also read the entire article series about entertainment complexes and the future of tourism:

• Thailand's vision: A new entertainment complex as an economic engine
• Macau: How an entertainment complex works in practice
• Singapore: Marina Bay Sands and the ecosystem behind its success
• Lessons from the world – risks and failures of entertainment complexes

Text: The editorial staff

Image license: YOU, Pixabay, original image