How gaming entertainment coverages with the hospitality industry in terms of economic and social impacts

Economic Impacts

Positive – Increased tourism revenue

Gaming facilities attract more tourists to spend money playing card games, table games, etc. Besides this major activity, they also contribute in different sectors in the hospitality industry. They may go the shops near the casino hotel and buy souvenirs for friends and family members, or they may go the restaurants and have their lunches or dinners.

Positive – Increased job opportunities stemming from multiplier effect

The multiplier effect refers to the increase in final income arising from any new injection of spending. The size of the multiplier depends upon household’s marginal decisions to spend. After the casino hotel got revenue from tourists, it will be able to give salary to the employees. Then those employees will go spend their salary in the different areas in the hospitality and other industries, making money keeps circulating and growing in the market. Because of greater demand from customers, companies will be a bigger incentive to expand and hire more staff to support the operations system. Job opportunities increase as a result.

Negative – Unstable revenue gain

decreased casono revenue


Take the current situation in Macau’s gaming industry as an example. Since the anti-corruption activities done by President Xi, the number of Chinese tourists going to Macau for gambling keeps dropping, and this negatively affects amount of revenue gained in the industry, as shown in the diagram.

Social Impacts

Positive – Increased social activities

People are given more platforms to relax. They are motivated not to stay at their homes, and instead they can go gamble with a small amount of money. Hence, on their way from home to the casino hotels, they may meet their friends or come across things they want to buy or consume and feel happier afterwards. All these increase their social activities, and are beneficial to them in terms of social aspects.

Negative – Increased possibility of crime, bankruptcies & social costs

Screen Shot 2015-11-15 at 8.30.05 pm


gambling social cost


However, negative impacts arise when people gamble too much. People may go bankrupt. There is a very old advertisement in Hong Kong talking about the bad sides of gambling, as shown above. You can see the face of the family members are replaced by cards, horse, etc., indicating that too much gambling may lead to the lack of communication and at the end you may lose everything. Also, this industry may increase crime in the country. The news attached above is a very interesting one. It talks about people using invisible ink to write some marks on the card, so when the players wear specially designed contact lens, they will be able to see the marks, to know what the number and symbol for that card, and win in that table eventually. Participants have been caught and put into prison, so don’t copy this.


10 Clever Casino Scams In Recent History – Listverse. (2014, September 16). Retrieved November 16, 2015, from

Macau Gambling-Revenue Drop Divides Investors. (n.d.). Retrieved November 16, 2015, from


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s