Integrated Resorts

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INTEGRATED RESORTS

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INTEGRATED RESORTS

Background Information

Among the latest buzzwords in hospitality, business is

integrated resorts. As a term, integrated resorts have gained

momentum in recent years as well as gaining general usage in the

realms of legal gambling. Worth noting is that the idea about

integrated resorts came into fame with the bid procedure for the

two Singapore Casino licenses. As early as 2004, the Singaporean

regime made it clear that it did not want just casinos and or

resort facilities dominated by conventional operations. This was

in line with longstanding traditions and or regulations in which

casinos were given the least recognition as far as development

and acceptance is concerned. Nevertheless, the country’s regime

mandated that only a small fraction of the actual facilities

would be used for casino operations. The rest would be utilized

as support facilities as well as client oriented amenities that

would be key pillars of development. As such, the authorities

came up with a licensing structure that required that only a

small proportion of the gross floor area would be utilized for

casino operations. The largest part would be used in theatres,


hotels, theme parks, convention centers, museums, and retail, as

well as food and beverage offerings. Unsurprisingly, other Asian

countries including South Korea have followed suit by swiftly

changing their stance on casinos as well as gambling and gaming.

As insinuated above, the concept of integrated resorts is

deeply rooted in resort and casino business. Indeed, integrated

resorts are not an entirely new concept in the world of gaming.

Rather, Singaporeans were instigating international world class

developments merging elements already found in various major

casino developments around the world (for instance, Australia’s

Crown Entertainment Complex, Las Vegas Palazzo, South Africa’s

Grand West Casino, and Malaysia’s Genting Highlands among

others). Currently, many operators speculate to have the first

integrated resort. In reality, however, the mid-20th century

developer J. Sarno (Nevada) can lay claim the distinction of

having established such a facility. Opened in 1966, Caesars

Palace is widely viewed to have ushered in a new era as far as

casinos are concerned. This facility functioned as a crucial

catalyst for the rather diversified styles of casino resorts that

followed. Indeed, the developer constructed the Circus casino


some years later and it was a heavily themed family resort –

serving a model for future developments because it brought about

a considerable shift in the makeup as well as profile of

visitors. Altogether, Sarno’s facilities may have remained

principally casinos, but were no longer centered on gambling.

Their non-gambling amenities were distinguishable.

Nonetheless, modern concept of integrated resort involves

developments that have happened over the years. In fact, the

concepts relate to facilities, as well as amenities that generate

virtual areas or cities of entertainment (Douglas 2006, p 75-80).

However, such a description does not do the modern concept of

integrated resort justice because such facilities and or

amenities also transform the landscape around them via spurring

complementary developments, as well as enhancing the interest

amongst some to involve residences in close proximity. As such,

they can emerge as substantial areas of economic activity as well

as catalysts for further development. Evidently, describing the

term-integrated resort becomes no easy in part because the scale

of such facilities and amenities is varied. In defining

integrated resort as a concept, it becomes critical that we


understand the term resort. The term resort, too, lacks a clear-

cut definition and numerous descriptions have been put forward.

For instance, resorts have been described as places

frequented by leisure and or holiday guests for recreational and

or tourism purposes – though meeting business also emerges as a

significant focus for these facilities and amenities. The key

part in describing a resort revolves around the fact that it

comprises a wide variety of recreational facilities (Nunkoo and

Ramkissoon 2009, p 257-277). In addition, it constitutes part of

a destination – whose underlying cultural or natural

characteristics are a motive for travel. Accordingly, resorts can

be described in relation to tourist accommodation catering

primarily to travelers, offering a variety of recreational

facilities, as well as differentiated via experiential qualities

in the framework of a particular regional destination. Such a

definition focuses on the ever-rising significance of the

experiential nature of tourism, and draws interest to the

increasingly significant association between resorts and their

surroundings (Hockey 2003, p 59-62).


Accordingly, integrated resorts have been defined to involve

various elements, including the scale as well as mix of amenities

or facilities. Indeed, the scale and mix of assets as well as

amenities and their ability to function as catalysts capable of a

transforming a region’s economy are some of the elements that

make such developments different from conventional casinos,

hotels, spas and casino-hotel complexes. Thus, an integrated

resort emerges as a euphemism for a rather large-scale

entertainment development based around a casino. Worth noting is

that the casino part, while physically small, can still function

as the primary economic engine that drives overall returns, as

well as facilitates investment in other areas. This illustrates

that the casino element occupies a significant place in the

integrated resort concept because it is meant to have such

magnitude and significance that it can generate sizeable funds

for development. Even with the casino occupying a relatively

small space of the gross floor area in integrated resorts, it

ought to have the capability to generate a disproportionate

contribution to the cash flow so that considerable investment can


be made in non-gaming amenities or facilities, which might not be

otherwise sustainable.

Nevertheless, the casino constitutes the nucleus as well as

the structure of the integrated resort (McDonald and Eadington

n.d, p 1-2). Altogether, the integrated resort is planned for

many visitors and a variety of food and beverage facilities or

outlets are required as complementary amenities. Worth noting is

that the range and breadth of restaurant and lounge offerings

constitutes an even greater magnet effect that can improve the

overall appeal of a venue. Consequently, this allows more

facilities to be added, including such non-gaming assets as

showrooms, cinemas, golf, courses, nightclubs, spas, amusement

parks, as well as retail shopping malls. This indicates that the

scale of integrated resort is enormous. New integrated resorts

may also include residential hybrids, including apartments and

time-share units.

Ethical and Moral Issues Related To Casino Management

As mentioned above, the casino constitutes a key part of the

integrated resort concept. Worth noting is that casinos are

widely known for their gambling and gaming activities.


Nevertheless, Asian gaming markets have witnessed exponential

growth. Resultantly, major gaming industry operators have sought

to open new casinos there. Inspired by Macao’s emergence as

East’s Las Vegas, numerous Asian nations have legalized or

considering to legalize casino gambling and gaming.

For instance, South Korea has increased its gambling casinos

in the recent past. Indeed, the past one decade or so has seen

the country’s inbound traffic post compound annual growth rate

(CAGR) of approximately 7.6 percent. The number of visitors to

the country has also increased significantly as new integrated

resorts development as well as favorable laws come to place. In

particular, Chinese visitors to Seoul have jumped to 18.1 percent

–considerably faster than 4.2 percent for Japan. Nonetheless,

such favorable growth has been accelerated by the emergence of

integrated resorts as well as changing laws regarding casinos as

well as resorts. Among the most renowned in the country is

Seoul’s Walkerhill Hotel. Perhaps, this hotel represents a

perfect example of the trend in the Asian region over the recent

past. Nonetheless, the hotel has been around for decades and for

over forty years, it has sought to reflect the changes in the


society. More so, it has come to be known for striving to adopt

the integrated resort concept via coming up with such facilities

as Paradise casino Walkerhil which is known to offer visitors the

most of Seoul excitement. It boasts diverse as well as modern

facilities together with it great range of gaming activities. The

casino emerges as an integrated resort particularly considering

its expansive dinner shows, gift events, hotel facilities, guest

game tournaments, as well as other amenities. In essence,

Walkerhill hotel has shifted focus into becoming a premier

integrated resort by shifting focus from casino-centric resort

facility to business-centered one. Seoul Walkerhill hotel also

can be viewed in terms of the transformation in the society and

the need by the government to diversify its revenue sources. Eun-

jung (2014, web) notes this shift as the regime accelerates

efforts to lower regulations for developing integrated resorts

incorporating a wide variety of tourist contents with gaming

facilities. In particular, the report notes that the Asian states

including Singapore and Macao are raising their global

competitiveness by developing excellent resort complexes and

Seoul ought to up its game. The emergence of Walkerhill Hotel as


an integrated resort, thus, should not come as a surprise. In

addition, Taiwan is considered opening a multi-million casino

complex, but the idea was rejected by local residents (Haque

2004, p 227-240). This has raised an important question regarding

whether gambling and gaming should be legalized within the

integrated resort concept. After all, casinos bring the concept

of integrated resorts to life.

Nonetheless, gambling and related gaming activities have

long been linked to the moral breakdown as well as regarded by

some as sinful activities that corrupts society. With emergence

of gambling and gaming activities in facilities such as

Walkerhill hotels and others, South Korean regime has remained

cautious over gambling addiction and other problems to the

society. Indeed, casinos and their gambling and gaming activities

can turn individuals into an addiction and has been shown to

destroy families. What is more, due to the huge amount of funds

involved, gambling, and related gaming activities often breed

organized crime, as well as money laundering at the local level.

Nonetheless, the irresistible lure of economic improvement in

terms of more jobs, improved tax revenue as well as tourism boost


generated by the amenities of integrated resorts continues to

attract more nations to legalize casino gambling, as well as

gaming. Admittedly, other factors, including the resort nature of

the casino facility, location competitors in the region,

monopolistic situations, timing, as well as necessary

supplementary measures can affect the benefit from casino

gambling and gaming.

Nevertheless, Singapore and other Asian markets including

Seoul are relatively new to the casino gambling and gaming having

dropped their decades old ban over the last decade or so.

Singapore opened its two integrated resorts in 2010. Perhaps, it

is easy to question why the region re-examined its anti-gambling

and gaming position. Integrated resorts are viewed as one-stop

centre for entertainment, as well as major mutations from gaming-

centric casinos. This signifies that integrated resort, though

having casinos at the centre of their operations, are rather

different from traditional casinos in that they are not purely

renowned for their gaming sessions or prominence. In fact, the

potential economic advantages as well as social cost generated by

integrated resorts are radically different from gambling-centric,


traditional casinos (Gazel et al 2001, p 65-75). Yet, as

indicated in this paper, a casino is bound to attract negative

social consequences. The issue, therefore, becomes whether an

economic investment constituting an overall tourist integrated

investment should be allowed because of the gaming component.

This paper explores the underlying principle for the integrated

resorts provision in Singaporean market. This will include

looking into the attempts by the regime to calm the negative

social consequences. The underlying principle of provision in

this area is founded on policy innovation, including the cities’

(Seoul and Singapore) having received backlash over the years for

being watered too clean. Indeed, the integrated resorts represent

an example of the lager Asian society’s attempt to shake off its

image as a pleasant, but unexciting destination. The facilities

and amenities in the resorts in Seoul and other cities are meant

to offer visitors attractions. It is evident that integrated

resorts in the area have meant that gambling and related gaming

activities have moved from a practice framed in moralistic terms

to a practice framed in techno-rational ones. Indeed, there


exists a historical transformation from purity binary to the

wealth binary over time.

Humpreys (2010, p 1-19) notes that the diffusion process

involving gambling has helped calm the fears surrounding

integrated resorts and their casinos. Seoul’s Walkerhill hotel

and its development to become an integrated resort underlines

such a process. Indeed, Humprey’s claims that gambling and gaming

in Australia, U.K, and US may help explain Seoul and Asia’s need

to change its stance. Worth noting is that Seoul, like many other

destinations currently adopting the integrated resort concept

including Singapore, faced a worldwide tourism competition

pressure and it was predictable that the regime had to turn to

casino gambling legalization as a source of revenue. In essence,

the pressures of the society necessitated a shift in attitude

towards gambling and gaming. Gambling and related gaming

activities emerged as alternatives to gaining tourism and tax

revenues. South Korean regime eased up hoping to have a share of

the swiftly expanding Asian gambling market. To an extent, the

government, as well casino entrepreneurs influenced the

development of market in the region. First, they took a strategic


action to create social ties internally, as well as externally.

Secondly, they strategically utilized language to frame

integrated resorts, gambling and gaming via amplifying their core

elements, extending the original concept, as well as bridging to

other potentially problematic frames. Nichols et al (2002, p 59-

75) contends that legitimacy is a process in which a number of

stakeholders contend to transform the social world. The Singapore

regime and others across Asian region tried to maximize the net

influences of integrated resort operation in the country, while

the casino investors tried to maximize the investment profits via

expanding casino operation.

Worth noting, is that the Singapore regime differentiated

integrated resorts from gambling-centric casinos, and never

wanted a gambling hall to compete in the market. If possible, the

government would like to attract mega-theme Park without the

casino element. However, projects in the mould of Disney theme

parks typically need a significant amount of government co-

investment and the Singapore government never envisioned such a

model. In fact, the integrated resorts envisioned in Singapore

were privately funded and iconic destination facilities or


amenities offering world-class entertainment, as well as leisure

facilities. This has emerged as a hallmark of integrated resort

concept across predominantly conservative Asian region. Such a

notion is further strengthened by the emergence of foreigner-only

laws with regard to casino-resorts. Overseas experiences,

however, evidence that integrated resorts without the casino

element may not prove economically viable. Thus, revamping

gambling as well as gaming policy in Seoul became a necessity if

it wanted to attract private investors. Altogether, the economic,

as well as the tourism environment in the Asia Pacific was

transforming swiftly and the society came to learn about the

significance of competitive business (Jha 2010, p 7). The swiftly

growing Asia pacific outbound market as well as the emergence of

low cost airlines represents significant opportunities for

tourism and hospitality industry. It is fair to say that many

nations are moving swiftly to create major tourist attractions

and as well as exciting tourism products, and Seoul did just that

in allowing integrated resort development. If Seoul never

responded and adapted to the transformation in the global market,

she would be gradually missing her tourism share.


A Micro-Examination of Facilities and Services within the IR- A

Balanced Against the Services Provided Within the Traditional

Resort?

After lifting the decades old ban against casinos, up to 19 bids

were submitted for the enormous project, although only a few made

it to the final. A casino license was given to Las Vegas Sands

Inc to construct as well as run a casino in Marina Bay. As well

as running a casino for leisure activities including gaming, the

Marina Bay Sands Integrated Resort included three towering hotels

bridged via a rooftop Sands SkyPark, a Moshe Safdie-designed

museum, a waterfall, business retail space, as well as a

convention center. Expectedly, gamblers across the world were

anxious to see the outcome of the firm in Singapore. Indeed, the

global society was excited about the plan for up to 11,000 jobs

opportunity and new integrated resort experience (Walker and John

2007, p 593-607). Genting International was awarded the other

license for the casino-resort project, and featured a marine life

park, universal studios, a casino, retail space, hotel rooms, and

other facilities. Nevertheless, it is evident that integrated

resorts are far more superior to conventional space not only in


terms of facilities/amenities available but also job creation and

revenue generated. In justifying the construction of such huge

facilities, the government noted that the project entailed the

best overall plan that met the country’s economic tourism

objective. Singapore’s case is representative of the trend across

Asia, and Seoul has also witnessed significant job opportunities

with continued development of Walkerhill hotel. Indeed, Chinese

visit South Korea in their numbers due to the nation’s per-capita

disposable income, which has grown. In addition, the visa process

has been streamlined thus presenting an opportunity for rising

businesses including Walkerhill hotel to prosper. For instance,

in 2012, the table plunge per Chinese VIP at Paradise casino

Walkerhill stood at approximately 186 percent greater than

Japanese (Korean Investment & Securities Co 2013, p. 8-26). This

signifies that even with the foreigner-only laws integrated

resorts’ revenue are bound to improve across Asia. The range of

activities and or amenities also provided in Seoul resorts

including Walkerhill is key in ensuring profitability. This

includes traditional resort offerings, contemporary café and bar,

prestigious designer boutique as well as trendy brands in retail


shop facilities. Altogether, the transformation of such hotels as

Wakerhill to embrace the integrated resort concept will prove

more profitable than traditional resorts because of improved

revenue generation.

Integrated Resorts Justification and Implications

Essentially, the project is crucial in strengthening Seoul’s

position as a pioneer MICE destination. The project reflects the

Asia’s vision for a large-scale, family resort with excellent

family leisure attractions, as well as other attractions. The

integrated resorts have emerged as a centerpiece of the country.

As an example, Singapore’s Marina integrated resorts’ total cost

(land price and associated capital cost) has value in excess of

S$5 billion, making it among the most expensive resorts globally

(Jalal 2010, p 8-39). Indeed, since their announcement the two

integrated resorts have helped boost Singapore’s economy. The

construction of the two integrated resorts in the country is also

viewed as helpful to the society because it helped several

sectors halt decline.

The two developments in Singapore are particularly viable,

as well as sustainable because tourism performance has


continually experienced healthy growth. For instance, in 2007 the

country welcomed up to 10.3 million visitors representing a 5.4

percent growth over 2006 (Jalal 2010, p 8-39). Seoul has not been

left behind and has been consulting regional firms to expand its

portfolio in integrated resort business. For instance, Genting

Singapore –operators of the (RWS) Resorts World Sentosa -

recently announced plans to construct a gaming facility in South

korea (Stradbrooke 2011, Web). Such trend has become common among

casinos in South Korea in an effort to take advantage of rising

demand for these facilities. Indeed, casino Walkerhill intends to

expand its facilities at the operation as well as construct an

integrated resort on Yeongjong. This signifies the presence of a

favorable business environment, and the fact that the South

Korean regime instituting supportive regulations. What is more,

it signifies a considerable transformation in society with regard

to perception about these facilities.

Financial Viability, Sustainability, and Conclusion

The integrated resort’s profits are structurally destined to

enhance along with increasing demand and sales. In addition, the

regime appears to coming up with rather favorable regulations.


Since 2010, South Korea’s casino stocks have done well and the

move to ease the visa process for visitors from China will only

serve the business. Indeed, the growth potential of integrated

resort operators in Seoul should be highlighted with China’s

booming per-capita income levels as well as rising demand for

leisure spending. Thanks to steady profit generating ability,

integrated resorts boast a relatively stable financial structure.

In 2013, it was predicted that the portion of Chinese punters or

visitors was to grow 22 percent at Walkerhill. It is beyond doubt

that such figures represent a considerable value addition to the

country’s GDP all of which further underlines the project’s

significance. They have not only helped to draw in more visitors

but also supported the services industry of the region.

Altogether, integrated resorts’ contribution to the country’s

economy can never be underestimated. With this in mind, managing

organizations that control such developments have their work cut

out in the future. This is particularly true considering the

rising significance of competitiveness in the tourism market. The

managing organizations will have to realize that casino resorts

were not legalized in across Asia to overtake Las Vegas as a


gambling and gaming destination, but to feature amenities, as

well as facilities such as theme parks and museums to boost

tourism.

Consequently, managing such development will require Seoul

to be marketed as a fun global city to work and live in. So far,

the emergence of integrated resorts such as Walkerhill has proved

successful in attracting visitors to the country. Social problems

are also likely to arise due to addicted gamblers, as well as an

influx of foreign workers and visitors. Managing organizations

will be required to act accordingly and measures may include

periodical surveys, as well as researches on the costs, as well

as advantages of gambling. Altogether, measuring productivity is

challenging in service industries and managing organizations for

integrated resort development will require concerted input from

stakeholders.


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