Benefits and Disadvantages of Using Casinos to Attract Tourists

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Las Vegas Attracts Tourists for Both its Casinos and Shows - Thierry
Las Vegas Attracts Tourists for Both its Casinos and Shows - Thierry
Casinos invite controversy. Find out why governments support the idea of using casinos to draw tourists whilst local residents are harder to convince.

Gambling is considered a sin by many so it is no wonder that any plan to increase the number of casinos is met with support by those who see the economic benefits to tourism and disapproval by those who anticipate the social and moral implications. Studies have also suggested that casinos have a limited ability to attract tourists.

Benefits of Casino Tourism

The economic benefits to the local economy seem obvious. People go to the casino and spend money. Everyone knows that despite the odd win by the persistent punter, the house wins at the end of the day. It’s a simplistic analysis but it’s true. Eadington and Butler report that governments such as the U.S, Canada, Australia and New Zealand have employed strategies in recent years to stimulate revenue by legalizing gambling for its perceived economic benefits.

Even though much of the casino revenue goes to sources outside of the casino’s areas, reinvestment into the immediate area is required to maintain existing casinos in order to keep attracting visitors and tourists.

Casinos provide jobs for local residents. They also provide recreational and cultural opportunities for tourists and locals. The conversion of historical buildings or structures into casinos can help to breathe new life and preservation into many buildings of historical significance.

Disadvantages of Casino Tourism

Is it a coincidence that the benefits of casino tourism are more likely to be perceived by the decision makers i.e. those who don’t live and work in the immediate casino vicinity? It does appear to be true when it comes to disreputable forms of entertainment like casinos and brothels. No-one minds them too much as long as they are not in one’s own back yard. Unfortunately, local residents don’t often get the choice.

The perceived associations with casinos are the rise in crimes like drugs, prostitution, robbery and assault. In Mississippi, it was reported by Giacopassi and Stitt that whilst robbery and aggravated assault have increased, other crimes such as rape and murder have decreased.

According to Perdue, Long and Kang, a higher population also leads to increases in the cost of living, traffic congestion, driving hazards and noise levels. Whilst this may be true, the same could be said of many new attractions.

And even if one couldn’t think of any valid objection, there is a pervasive sense that entertainment such as that provided by gambling and casinos, is that these activities are antisocial and anti-family. Gambling can also be addictive so one could argue that every dollar spent on the blackjack table is a dollar that could be better spent feeding one’s children.

Do Casinos Really Attract Tourists?

Whilst casino cities such as Las Vegas and Monte Carlo are best known for their casinos, they are not their only sources of income. The Tourism Company suggests that casinos on their own are not a guaranteed source of visitors and tourists. Las Vegas is now known just as much for its shows and convention facilities as it is for its casinos.

Casinos and Tourism

Casinos are associated with tourism but they are not a guaranteed source of tourism. It’s valid that a tourism strategy would include casinos but only once both the benefits and the disadvantages have been discussed and addressed.

Sources

  • Eadington, W.R, Butler, R.W. (1995). The emergency of casino gaming as a major factor in tourism markets: policy issues and considerations. Change in Tourism: People, Places, Processes. Ed. Butler, R.W, Pearce, D. Pages 159-186.
  • Perdue, R R, Long, P.T, Kang, Y.S. (1995). Resident Support for Gambling as a Tourism Development Strategy. Journal of Travel Research. (34:2). Pages 3-11.
  • Giacopassi, D and Stitt, B.G. (1993). Assessing the impact of casino gambling on crime in Mississippi. American Journal of Criminal Justice. (18:1). Pages 117-131.
  • The relationship between casinos and tourism (2010). The Tourism Company website.
Esma Holden, Esma Holden

Esma Holden - Esma Holden has been an international travel consultant for eleven years.

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