Casino hopes vs. reality: Tourism trends upset Thailand
If you’ve been keeping an eye on Asia’s gambling buzz lately, Thailand’s casino ambitions are hard to miss. The country has been actively exploring the idea of developing full-scale entertainment and casino complexes to give its tourism sector a much-needed boost. And it’s no longer just talk; real progress is being made.
Thailand’s cabinet recently approved a plan to construct integrated resorts with casinos. Lawmakers are currently examining possible regulatory frameworks, licensing processes, and feasible locations as part of draft legislation. Bangkok’s long-term objective is to develop a cutting-edge, tightly controlled gambling sector that enhances the nation’s leisure and tourist options.
Persistent issues for legislature
However, the road to legalisation is far from straightforward. There is still significant opposition, particularly from conservative and religious groups, despite the strong backing of business associations and government agencies.
Since Buddhism is the most common religion in Thailand and has historically discouraged gambling, many people still associate it with crime, addiction, and moral degeneration. Although there are differing views among the public, a sizable portion is worried that any potential economic advantages may be outweighed by the social repercussions.
There are logistical and regulatory obstacles in addition to social opposition. Key questions remain: How will the industry be monitored, how will corruption be addressed, and what measures will be implemented to promote responsible gambling? Another unresolved issue is whether Thai citizens will be allowed to gamble or if access will be restricted to foreign tourists.
Still, the most pressing concern doesn’t lie within parliament; it’s economic. Thailand’s tourism industry, long powered by waves of Chinese visitors, is suffering a historic slowdown. According to a recent report by Maybank Securities, short-haul travel from China has plunged, dealing a serious blow to the country’s tourism-dependent economy.
In 2025, Chinese tourist arrivals are estimated to have dropped to just 30 percent of pre-pandemic levels, far below projections for a post-COVID rebound. Analysts attribute this to a combination of safety concerns, shifting travel preferences, and broader economic trends in China. The March earthquake and the high-profile kidnapping of Chinese actor Wang Xing in Thailand have only made matters worse.
Why Chinese tourists count
Now, some may ask, why is this such a big deal? Because if you’re talking about building casinos without factoring in Chinese tourism… you’re doing the maths wrong.
Chinese tourists are widely seen as the VIP segment of the gaming market. Their strong interest in games like baccarat, combined with their high spending power, made them the dominant force in places like Macau, where they once contributed over 60 percent of gaming revenue through VIP junket operations.
Even after China’s crackdown on junkets and cross-border gambling, casinos in Southeast Asia, including the Philippines, Cambodia, and Singapore, continue to craft luxury experiences aimed at attracting wealthy Chinese travelers. The irony is that these efforts persist even as Chinese travel numbers continue to decline.
Beijing’s tightening policies have slowed outbound gambling travel. Yet when they do travel, Chinese VIPs still lead the high-stakes scene. This makes them a critical, albeit increasingly challenging, market for casino operators in the region.
That’s why the current slump has exposed a serious vulnerability: Thailand’s overdependence on a single market. As a result, the government is shifting focus to other fast-growing, high-spending tourist sources, especially in Europe and India, to drive future growth.
Thailand picks up the cudgels
Still, the importance of Chinese travellers can’t be ignored. In a clear sign of this, Thailand is hosting 500 Chinese travel agents and media representatives from May 29–31 as part of a major familiarisation initiative. Dubbed the “Sawasdee Nihao” campaign, the event includes trade meetings, site visits, and media outreach, all aimed at generating 5,000 business deals and reaching up to 350 million potential tourists in China.
Indeed, the stakes are significantly higher, and the task at hand is enormous. Thailand must strike a delicate balance between regaining its appeal to Chinese tourists and developing a more robust tourism and gambling industry if it hopes to realise its casino aspirations.
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