According to a report by JPMorgan, integrated resorts in Bangkok, Thailand, are expected to generate annual revenues of $2.5 to $3 billion, potentially reaching up to $5 billion. The analysis attributes most of the potential revenue to the influx of foreign tourists.
The investment bank's report emphasizes that Bangkok can access three main groups that drive the financial success of these entertainment complexes: local urban customers, Thai customers from outside Bangkok, and international tourists.
Casinos Expected to Dominate Revenue
Although casinos are expected to occupy only about 5% of the total area of these entertainment complexes, JPMorgan's analysis predicts they will contribute over 90% of the total revenue. Moreover, more than 50% of the revenue is expected to come from foreign tourists.
JPMorgan's report compares the potential of Bangkok's integrated resorts with Singapore, noting similarities in population and urban characteristics between the two cities. However, the bank also acknowledges some key differences that could affect Bangkok's revenue generation. Thailand has a broader range of tourist attractions than Singapore, which might lead to a lower conversion rate of tourists and locals into casino customers.
Additionally, the report notes that the income levels of local residents in Thailand are generally lower than those in Singapore, which could reduce local consumption. With Thailand potentially imposing higher entry fees for local residents, this could also affect the penetration rate of local customers visiting casinos. Despite these challenges, JPMorgan considers Singapore a valuable benchmark for Bangkok, as Singapore has successfully integrated casinos with its broader entertainment and tourism industry.
