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Page | 1 Queen Margaret University EDINBURGH MASTER OF BUSINESS ADMINISTRATION (HOSPITALITY MANAGEMENT) DISSERTATION A Study on the Socio-Economic Perspective of the Singapore Integrated Resorts Lum Chan Seng Student ID: 07008515 Supervisor: Mr. Tony Toh Yew Soon 08 November, 2009

Dissertation Socio Economic Resort of Singapore

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Queen Margaret University

EDINBURGH

MASTER OF BUSINESS ADMINISTRATION

(HOSPITALITY MANAGEMENT)

DISSERTATION

A Study on the Socio-Economic Perspective

of the Singapore Integrated Resorts

Lum Chan Seng

Student ID: 07008515

Supervisor: Mr. Tony Toh Yew Soon

08 November, 2009

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TABLE OF CONTENTS

SECTION PAGE

Declaration 2

Acknowledgement 3

Abstract 4

Table of Contents 5

List of Figures/Tables 7

List of Appendices 10

CHAPTER 1 INTRODUCTION 11

1.1 Background 12

1.2 Integrated Resorts 13

1.2.1 Definition of Socio-Economics 14

1.2.2 Objectives of Research 14

1.2.3 Research Methodology 15

1.2.4 Limitations of Research 15

CHAPTER 2 LITERATURE REVIEW 16

2.1 Introduction 17

2.1.1 Revitalising Singapore's Tourism 18

2.1.2 Singaporeans' Love for Gambling 20

2.1.3 Gaming Industry 21

2.1.4 Gaming Opportunities in Asia 21

2.2 Industry Analysis 22

2.3 Social Costs versus Economic Benefits 23

2.3.1 Potential Social Problems 23

2.4 Economic Benefits 27

2.5 Formulation of Strategies for the IRs 30

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CHAPTER 3 RESEARCH METHODOLOGY 31

3.1 Qualitative and Quantitative Research 32

3.1.1 Qualitative Research 32

3.1.2 Quantitative Research 33

3.1.3 Comparison of Qualitative and Quantitative Methods 33

3.2 Justification of Selected Method 35

3.3 Research Procedures 36

3.3.1 Primary Data 37

3.3.2 Secondary Data 37

3.3.3 Sample Size of Primary Data 38

3.4 Method of Data Analysis 39

3.4.1 The Survey Questionnaire 39

CHAPTER 4 ANALYSIS AND FINDINGS 41

4.1 Introduction 42

4.1.1 Characteristics of Respondents 42

4.2 Analysis of Data and Findings 43

CHAPTER 5 DISCUSSION 72

5.1 Socio-Economic Impact 75

5.1.1 Economic Factors 75

5.1.2 Cost-and-Benefit Analysis 77

CHAPTER 6 CONCLUSION AND RECOMMENDATION 78

6.1 Conclusion 79

6.1.1 Socio-Economic Impact 80

6.2 Recommendation 82

6.2.1 Gambling Controls 83

REFERENCES 85

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LIST OF FIGURES

Figure 2.1 Visitors' Arrivals - July 2008 to July 2009 19

Figure 2.2 Visitors' Arrivals - top 15 markets 19

Figure 2.3 Snapshot of Singaporeans queuing up at betting booth 20

Figure 3.1 Quantitative and Qualitative Research 34

Figure 4.1 Respondents' Nationality 43

Figure 4.2 Respondents' Gender 44

Figure 4.3 Respondents' Age 45

Figure 4.4 Respondents' Marital Status/Highest Education level 44

Figure 4.5 Respondents‟ Current Employment Status 48

Figure 4.6 Respondents‟ Annual Income 49

Figure 4.7 Respondents‟ Gambling Experience 50

Figure 4.8 Respondents‟ Frequency of Gambling 51

Figure 4.9 Respondents‟ Time spend in Casino 52

Figure 4.10 Respondents‟ Money Spend in Casino 53

Figure 4.11 Respondents‟ Opinion - Crime Rate 55

Figure 4.12 Respondents‟ Opinion - Divorce/Separation 56

Figure 4.13 Respondents‟ Opinion - Child Neglect/Spouse Abuse 57

Figure 4.14 Respondents‟ Opinion - Personal Bankruptcy 58

Figure 4.15 Respondents‟ Opinion - Suicidal Attempts 59

Figure 4.16 Respondents' Opinion - Gambling Addiction 60

Figure 4.17 Respondents‟ Opinion - Social Vice 62

Figure 4.18 Respondents‟ Opinion - Moral Values/Standards of Singapore 63

Figure 4.19 Gambling in Casino will have adverse effect to Singapore 64

Figure 4.20 Respondents' Opinion - New Capital Investment 66

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Figure 4.21 Respondents‟ Opinion - Revitalising Singapore's Tourism 67

Figure 4.22 Respondents‟ Opinion - Increase Employment Opportunities 68

Figure 4.23 Respondents‟ Opinion - Increase Local Government Revenue 69

Figure 4.24 Respondents' Opinion - Increase Singapore's GDP per capita 70

Figure 4.25 Respondents‟ Opinion - Improve Economic Benefits 71

Figure 5.1 Respondents‟ Opinion about the IRs 74

(economic benefits versus social costs)

Figure 5.2 Singapore Property – The Sail @ Marina Bay 76

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LIST OF TABLES

Table 4.1 Respondents‟ Perception on the Social Impacts 54

Table 4.2 Respondents‟ Perception towards Casino Gaming 61

Table 4.3 Respondents‟ Perception on the Economic Benefits 65

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LIST OF APPENDICES

Appendix A Survey Questionnaire 91

Appendix B Respondents‟ Feedback and Comments 96

Appendix C SPSS Survey Data 97

Appendix D Singapore‟s Unemployment Rate – 1998 to 2009 98

Appendix E Singapore‟s Unemployment Stabilised 99

Appendix F Singapore‟s Employment Statistics 100

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CHAPTER 1

INTRODUCTION

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1. INTRODUCTION

1.1 Background

Singapore is a small island city with a total population of about 4.65 million. The local

population consists of approximately 77% ethnic Chinese, 14% Malays and 8%

Indians. The remainder 1% is made up of Eurasians and other guest workers. It is a

relatively young population with only 217,000 or 7% of the population currently over

the age of 65. This is set to change dramatically from now to 2030 when 800,000 or

18.7% of the population will be aged 65 years and above. The proportion of those

between 15 and 45 years currently make up nearly half the population (Singapore

Facts and Figures, 2009).

It is a relatively affluent population, and nearly 80% of the population is categorised as

middle class. The concept of middles class is prevalent in both common parlance and

the social sciences. The phrase “middle class” is extremely ambiguous; no consensus

exists on either the upper bound or lower bound separating the middle class from other

classes, Eisenhauer (2007). Singapore's GDP per capita in 2007 was S$52,994 and it

remains one of the wealthiest countries in the world - this rate of GDP is comparable

to that of the Scandinavian countries. There are over 7,000 Multi-National

Corporations (MNCs) with operations based in Singapore, 4,000 of which are regional

headquarters (Singapore Facts and Figures, 2009).

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1.2 Integrated Resorts

Integrated Resorts (IRs) by definition are resorts with mixed development like hotels,

restaurants, convention centre, theme park, shopping centre, casino, etc. (Lee, 2005).

As it is generally a gaming component - casino, integrated resorts development has

stirred a great controversy among the Singaporeans.

On 18 April 2005, The Prime Minister of Singapore, Mr Lee Hsien Loong announced

the cabinet's decision to develop two integrated resorts in Marina Bay Sands and

Resorts World at Sentosa. The Singapore Government stated that the aim of the

Integrated Resorts is to boost the country's tourism industry. There has been very keen

competition from the neighbouring countries like Malaysia, Thailand and Hong Kong.

According to the Government, the Integrated Resorts are expected to create some

35,000 jobs directly and indirectly (Business Times, 08 Nov 2005).

There has been debate among the Singaporeans on the plan to build Integrated Resorts.

Religious groups and social workers voiced their disapproval at the negative social

impact of gambling. The Government, however, promised to have a proper and strict

safeguard to limit the social impact of gambling, among others exorbitant entrance fee

and the casinos would not extend credit to local population (Parliamentary Debate on

IR Decision, 2005).

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1.2.1 Definition of Socio-Economics

Socio-economics is often considered as multi-disciplinary, applying theories and

methods from sociology, economics, history, psychology and many others. It has

emerged as a separate field of study in the late twentieth century. In most cases, socio-

economists focus on the social impact of some sort of economic change, which is

basically a study of the relationship between the economic activity and social life

(Davis et al, 2008).

1.2.2 Objectives of Research

This research deals with the socio-economic factors that have potential impact on the

Singapore IRs. Its focus is to investigate and analyse the socio-economic impact, with

the aim to formulate strategies for the Singapore IRs. The research has the following

objectives:

i. To identify and critically evaluate the significance of the socio-economic

factors of the IRs.

ii. To analyse the social impacts, such as triad activities, money laundering,

gambling addiction, family separation, divorce, etc.

iii. To evaluate and analyse the economic benefits that outweigh the social ills

iv. To identify, evaluate and formulate strategies for the IRs.

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1.2.3 Research Methodology

In order to have a good coverage and representative sample, 300 individuals will be

selected randomly. The survey will be conducted on participants with different age

group, gender, occupation, educational background, and also whether they are familiar

with or have any experience going to a casino, as the experienced and inexperienced

casino goers tend to have different behaviour and expectations. The survey

questionnaires once completed are collected and analysed by the researcher. All the

participants would be asked about their opinions on the socio-economic impact of the

IRs.

1.2.4 Limitations of Research

There were constraints and limitations in this research:

i. The sample was drawn from disparate sources before the operation of the IRs,

so it may not accurately represent the general population.

ii. The survey was carried out in the absence of a surveyor, and there may be

some misinterpretation of the questions.

iii. Sampling errors could exist due to time constraints and selection of the English

educated respondents can be biased in their thoughts.

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CHAPTER 2

LITERATURE REVIEW

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2. LITERATURE REVIEW

2.1 Introduction

Literature review is an unambiguous and logically arranged work which is presented

including all the pertinent research work done until this page. Its factual intention is to

categorise and draw attention to the significant variable, to file the essential findings

that may be used as a foundation on which the current investigation is build and

develop the hypothesis (Sarantakos, 2005).

The Integrated Resort projects (IRs) are undoubtedly a necessary step to Singapore‟s

future economic viability. As Singapore has no natural comparative advantages, it

must capitalise its ability to stay at the forefront of the global economy, with focus to

attract foreign investors, tourists and talent. Surveys have suggested that Singapore is

seen as 'unexciting" compared to other travel destinations, and has been labelled as

conservative, moderate and stale; concentrating on traditional "cultural" projects like

the Asian Village, Tang Dynasty and Haw Par Villa, and failing to move on with new

innovations (Straits Times, 20 April 2005).

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2.1.1 Revitalising Singapore's Tourism

Visitor arrivals to Singapore fell by 4.5% year-on-year in July 2009 to reach 881,000

visitors. Visitor‟s days were estimated at 4.6% million days, year-on-year decrease of

11.6% in comparison of July 2008 (923,000), as shown in Figure 1. The decline in

tourism is certainly a concern for Singapore and the solution is to revitalise

Singapore‟s tourism and create a unique Singapore niche. There is little point in

selling Singapore as a country rich in heritage and culture; rather, the IRs will market

the modern entertainment, vibrant city life, and a constantly changing environment

Singapore can best call her own (Singapore Tourism Board, 2009).

Although China is ranked third among the top 15, as shown in Figure 2 below, there is

good potential for the Chinese tourists market. With the rise of China and the influx of

middle-income Chinese tourists (the segment with the largest growth potential, in

which most are willing to splurge at the gaming tables), the IRs would become more

crucial than ever. The Feedback Unit itself has ascertained that Singapore wants "an

iconic destination resort that offers world-class entertainment and leisure facilities",

not a mere gambling facility like Macau; one should bear in mind that the IRs main

functions go beyond the mere attraction of tourist revenue via the casino, but rather in

the creation of a holistic tourist destination.

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FIGURE 2.1 VISITOR ARRIVALS, JULY 2008 – JULY 2009

FIGURE 2.2: VISITOR ARRIVALS, TOP 15 MARKETS – JULY 2009

Source: Singapore Tourism Board

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2.1.2 Singaporeans’ Love for Gambling

As reported in “Today” on 27 August, 2009, Singaporeans have a love for gambling.

Even without the casino, Singaporeans reportedly indulged in gambling, such as 4D,

TOTO, football betting and horse-racing. Their growing appetite for gambling drove

an increase of 3.6% in betting and sweepstakes duties, totaling S$1.4 billion (4D

accounted for S$1.1 billion). Individuals claimed S$19 billion in reliefs (for example

CPF, child, caregiver, maid levy, NS man); 218,600 people with assessable income of

over S$20,000 did not have to pay tax (Today, 27 Aug, 2009).

FIGURE 2.3:

SNAPSHOT OF SINGAPOREANS QUEUING UP AT BETTING BOOTH

Source: Today, 27 Aug 2009

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2.1.3 Gaming Industry

The casino industry in Asia has been booming over the years, both legally and

illegally. Despite moral, political, security, and religious barriers in legalising and

operating gambling facilities for recreation, Asia still presents great potential for

expansion of the gaming industry, partly due to Asians‟ inherent wagering nature, as

shown in Figure 3 above. China‟s growth has attracted great interest from the casino

operators in anticipation of the growing numbers of high rollers from China. Asia and

Middle East have accounted for 22.4% of the global gaming revenue, illustrating the

growth of the region as a gaming industry. Singapore, Japan, Thailand, and Taiwan

are all tending towards legalising casinos in the hope to partake in this growing

industry (Ministry of Trade and Industry, 2005).

2.1.4 Gaming Opportunities in Asia

There are vast gaming opportunities in the region. Malaysia, Philippines, South

Korea, and Macau have acquired a highly lucrative 85% share of Asia‟s legal casino

industry. Although there are many illegal casinos in Thailand, Laos, and Vietnam, they

are smaller scale and generally lack sophisticated facilities that could be of threat to

major players. Of the leaders, Malaysia seems more of a concern as its IR complex is

what interests Singapore. Potential new players such as Thailand are of a lesser

concern, as they are more interested in operating a pure gaming casino instead of an IR

(Ministry of Trade and Industry, 2005).

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2.2 Industry Analysis

The Integrated Resort that envision in Singapore is an iconic destination resort, which

offers world-class entertainment and leisure facilities. Casino gaming is becoming

widely available around the world and Singapore‟s intention is not to develop a

gambling attraction that compete in the gambling market (Lee, 2005). The Integrated

Resorts in Singapore will not be like the gambling facilities in Macau or Australia,

which mainly cater to local patrons. One possible model for Singapore is a premium

themed mega-resort, which has a large scale development that takes advantage of

beach and marina settings to create a truly get-away holiday feel for visitors.

Sited away from the buzz of the city centre, the themed mega-resort is a tourist

destination in its own right, has a wide range of entertainment facilities such as hotels,

restaurants, retail outlets, theatres, and themed attractions. The best example of this

model is the Atlantis resort on Paradise Island in the Bahamas.

Another possible model is one sited within the city as part of a high-intensity

integrated development. The facilities usually include hotels, shopping, food and

beverage (F&B), theme attractions as well as cultural amenities such as concert halls,

theatres and museums. They add to the buzz and colour of the city. Examples are the

urban integrated resorts in Las Vegas. Hence, there are various issues that need to be

considered.

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2.3 Social Costs versus Economic Benefits

Learning from the other countries, there are many similar entertainment hubs that are

not economically viable if the casino component is removed. This is because the

gaming and non-gaming components in such complexes are inter-dependent. Revenue

generated from the casino is used to cross-subsidise the other non-gaming attractions,

which in turn attract the large number of visitors. While tourism strategy is not

dependent on the IR projects alone, the IRs would play a more significant role in the

overall strategy. These facilities leverage off each other and become viable because of

the high volume of traffic drawn to the wide range of entertainment options available.

It is inevitable therefore that there are social costs involved and the government is

prepared to go ahead with the casinos considering its wide-scale economic benefits

(Ministry of Trade and Industry, 2005).

2.3.1 Potential Social Problems

Potential social problems are very much anticipated with the upcoming operation of

the casinos in Singapore, and listed below are potential problems that may have

serious impact on the IRs:

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i. Compulsive Gambling

People are prone to falling prey to compulsive gambling once they are addicted, and

this often leads to bankruptcy or family problems. The misconception that by

continuing to gamble despite suffering a loss would enable gamblers to recoup their

losses often proves to be their demise. A study by Widgery (1998) found that the

number of people seeking help for gambling addiction increased after the casinos

opened. However, it was added that part of this rise could be due to increased publicity

in problem gambling and support services. Therefore, it is expected that a similar

upsurge in the number of gamblers seeking help can be expected if a casino opens

here. Nevertheless, it is dependent on whether the casino enlarges the pool of gamblers

or draws largely on the existing pool of gamblers.

ii. Increase in Crime Rate and Vices

In the first six years of casinos in Minnesota, the crime rate in counties with casinos

increased more than twice as fast as in non-casino counties. According to an analysis

by the Minneapolis Star Tribune, the median crime rate in casino counties rose 39

percent during that period as compared to an 18 percent increase in non-casino

counties (McGrath and Ison, 1995). Casinos are usually the favourite hangout for

troublemakers or lawbreakers to carry out their underground dealings. With these

undesirable characters, crime rate and vices will rise, and it is only a matter of time

before prostitution, triad activities or drug peddling creeps in. Gambling addicts may

end up stealing or robbing to satisfy their gambling needs or desire.

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iii. Child Abuse and Neglect

The National Gambling Impact Study Commission in America reported that children

of compulsive gamblers are often prone to suffer abuse, as well as neglect, as a result

of parental problem or pathological gambling (NGISC, final report, June 1999). With

the absence of proper guidance from parents who are addicted to gambling, the child

may end up with bad influence, mixing with the wrong company and learning the bad

things, such as smoking, gambling and stealing. Parents who lost money at the

gambling table often neglect their children or vent their frustrations on them. In most

of these cases, physical abuse of children is common. Such emotional trauma would

scar them for life, making them emotionally unstable and it may also result in juvenile

delinquency problems.

iv. Impact of casino Gambling on Bankruptcy

A study by Nichols, Stitt and Giacopassi (1999), noted that personal bankruptcies went

up significantly in five of the seven casino communities when compared to the control

groups. A possibility exists that the casino may increase the bankruptcy rate in

Singapore. While many Singaporeans are not considered poor by international

standards, the cost of living is high, causing a strain on the breadwinner of the family.

Many Singaporeans gamble with hopes to get rich quick, but most may end up

miserable through their indulgence in gambling.

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v. Rise of Loan Shark Activities

With the opening of the IRs, more people are likely to borrow from loan sharks in

order to satisfy their gambling indulgence, and this may lead to an increase in the

number of loan sharks. Casinos are usually a favourite place for loan shark, who is a

person or body that offers unsecured loans at high interest rates to individuals, often

backed by blackmail or threats of violence. Problems of borrowing from loan sharks

can be seen all over in Singapore, and most of the borrowing occurs due to the

addiction to gambling.

vi. Work Performance affected by Financial Problems

In most cases if not all, people who indulge in gambling would be badly affected if

their finances are not properly managed. This would have a spill-over effect on the job

performance of the gamblers‟ immediate family members, as they tend to lose interest

and are troubled by family problems. Some of these problems would threaten the

prospects of Singapore whose critical assets lie in its human resources.

vii. Moral Values and Social Order

The Singapore model is that of morality and social order. Play, escapism, and

individualism have been disparaged as antithetical to the discipline and self-sacrifice

that have underpinned Singapore‟s success. By having IRs, the belief that Singapore‟s

rational and socially puritan model delivers results may be disowned, as an element of

conflict exists.

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viii. Singapore’s Good Reputation and Image

The opening of the IRs may tarnish Singapore‟s good reputation and image that has

established over the years. As a casino is always associated with vices and social ills,

these negativities may erode Singapore‟s years‟ of reputation as a moral and socially

puritan country. Money laundering activities may be involved and this may jeopardise

Singapore‟s reputation as a financial hub.

2.4 Economic Benefits

The IRs are projected to result in S$5 billion in investments, 35000 new job

opportunities, and a S$1.5 billion boost to the economy, translating to an increase in

annual growth of 0.3 - 1.3 % from 2009 onwards (Lee, 2005). Coupling that to the

multiplier effects on key sectors, such as retail, service apartments, rental properties,

hotels and airlines, the appeal of the IRs would become more apparent. Furthermore,

the Far Eastern Economic Review has also reported that across Asia, a huge

investment of US$23 would be solely spent on gambling in 2010, increasing from

US$8 in 2000 (Gilley, 2001).

The gambling market over Asia is predicted to expand further once the casinos are

legalised and available in the region (Poon, 2004; Sim, 2004). Various data had also

revealed that Singaporeans were already spending more than S$180 million a year in

neighbouring Malaysian casinos. A few years ago, S$140 was spent by Singaporeans

in nearby Indonesia's Batam Island and about S$400 million was spent on the casino

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cruise ships (Kaur, 2004). In total, Singaporeans have spent a significant sum on

overseas gambling. Hence, having casinos in Singapore would be a solution to

prevent outflow of Singapore's money, and the IRs would be a good source to generate

revenues and improve the capital investments with higher GDP growth.

i. Contribution to Tax Revenue

The opening of the casino is expected to further increase Singapore‟s betting duties.

The gaming revenue generated might be greater if the casino is able to capture the S$2

billion, which was wagered in underground gambling and betting, as Singaporeans

visit overseas for casino gaming (The Business Times, 29 September 2004). The IRs

can attract these Singaporeans to gamble locally and stem this expenditure outflow.

Assuming that it has the potential to stem the “leakage” of estimated $2 billion that

Singaporean gamblers lose annually at casinos overseas, this implies that more tax

revenue collection, which can be used to improve the well-being of Singaporeans.

ii. Boost for Singapore’s Economy and Tourism Industry

The IRs would bring in entertainment and conventions, hospitality and retail outlets,

which will help to increase the demand for hotel services, greater patronage at

restaurants and heightened convention and exhibition activities. Studies and surveys

have shown that tourism numbers and spending increase with the development of IRs.

Supporters of IR have claimed that tourists‟ duration and repeated visits would also

increase. STB also supports the project, as it believes that the IRs will help to boost the

tourism industry and enhance Singapore‟s attractiveness as a tourism destination.

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Being among the top-three visitor-generating markets, China (with increasing number

of middle-class), and Japan (with existence of high rollers), serve as attractive target

segments for Singapore (Singapore Tourism Board, 2009).

However, stiff competition resulting from the expansion plans and the potential

entrance of various countries may dampen the prospects of tourism industry.

Furthermore, Singapore may suffer erosion in tourist arrivals if the IRs are not well

prepared. Therefore, the magnitude of the tourism boost would depend on how

Singapore markets and positions as a tourism destination. Another concern is the

cannibalisation effect. Tourists may spend more time and money in the IRs, at the

expense of other forms of activities such as shopping and entertainment. For instance,

prices of casino hotels are often marked down heavily and this may affect other hotels.

If the proposed IRs can attract high-rollers, as well as a larger slice of the convention

business, the net impact should be positive.

iii. Employment

As illustrated in Labour Force Survey (Appendix B) the unemployment rate shows a

downward trend due to the improving economic conditions over the past few years,

from 2003 to 2008. For the year 2007, the strong economic recovery has helped to

ease the unemployment rate to less than 2%. Total employment increased by 9.6% in

the fourth quarter, December 2007, growing for the fourth consecutive quarter and at

an increasing pace due to contributions from the services sector. The underlying

growth momentum in job creation has accelerated at the close of the fourth quarter,

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raising employment. The Singapore government‟s primary concerns are still good

employment of its residents and attraction of foreign talents to ensure social stability

and growth sustainability. The local IR industry can easily create thirty to forty

thousand job openings, which is definitely a positive sign to Singapore.

2.5 Formulation of Strategies for the IRs

As countries around the region are making head ways and aggressively promoting

tourism, it is relatively important to understand Singapore‟s environment using the

PEST analysis. This is especially critical with various East Asian countries trying to

develop or integrating gambling facilities into large scale IRs. In maintaining long

term competitive edge of an IR, it would involve extensive management of strategies.

The implications would be evaluated through the Cost-and-Benefit analysis. The topic

on IR strategies or those related to the casino business in Singapore is a relatively new

area of research. Most articles searched were case studies of casino operations. Hence,

this research aims to study on the socio-economic impacts and explore the possible

strategies that IRs with casinos can be adopted in Singapore.

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CHAPTER 3

RESEARCH METHODOLOGY

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3. RESEARCH METHODOLOGY

3.1 Qualitative and Quantitative Research

Research methodology is an important aspect, which defines the way the project is

approached. It is a conceptual frame work that is developed for the research purpose,

using various research methods through a wide range of literature including text

books, journals, etc. According to Zikmund (2003), research methodology can be

classified in various ways. However, one of the most common distinctions is between

qualitative and quantitative research methodologies.

3.1.1 Qualitative Research

Qualitative research methods were developed in the social sciences to enable

researchers to study social and cultural phenomena. Examples of qualitative methods

are action research, case study research and ethnography. Qualitative data sources

include observation and participant observation (fieldwork), interviews and

questionnaires, documents and texts, and the researcher‟s impressions and reactions

(Zikmund, 2003). Qualitative research is much more subjective than quantitative

research and uses very different methods of collecting information, mainly individual,

in-depth interviews and focus groups. The nature of this type of research is exploratory

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and open-ended. Small numbers of people are interviewed in-depth and/or a relatively

small number of focus groups are conducted (Veal, 2005)

3.1.2 Quantitative Research

Quantitative research methods were originally developed in the natural sciences to

study natural phenomena. Examples of quantitative methods are well accepted in the

social sciences, which include survey methods, laboratory experiments, formal

methods (e.g. econometrics) and numerical methods, such as mathematical modeling

(Zikmund, 2003). By definition, measurement must be objective, quantitative and

statistically valid. In short it is about numbers and objective hard data.

3.1.3 Comparison of Qualitative and Quantitative Methods

Through the analysis and comparison (Figure 3.1), quantitative research is objective;

qualitative is subjective. Quantitative research seeks explanatory laws; qualitative

research aims at in-depth description. Qualitative research measures what it assumes to

be a static reality in hopes of developing universal laws. Qualitative research is an

exploration of what is assumed to be a dynamic reality. It does not claim that what is

discovered in the process is universal, and thus, replicable. Common differences

usually cited between these types of research include.

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FIGURE 3.1: QUALITATIVE AND QUANTITATIVE RESEARCH

Qualitative

Quantitative

Objective

To gain a qualitative

understanding of the

underlying reasons and

motivations

To quantify the data and

generalize the results from the

sample to the population of

interest

Method

Subjective - individuals‟

interpretation of events is

important, e.g. using

participant observation, in-

depth interviews etc.

Objective – seeks precise

measurement & analysis of target

concepts, e.g., using surveys,

questionnaires etc.

Sample

Small number of non-

representative cases

Large number of representative

cases

Process

Deductive

Inductive

Data Collection

Unstructured

Structured

Data Analysis

Non-statistical

Statistical

Outcome

Develop an initial

understanding

Recommend a final course of

action

Source: Malhotra, (2002) and Miles & Huberman (1994)

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3.2 Justification of Selected Method

Questionnaire survey is arguably the most commonly used technique in management

research. According to Veal (2205), the merits of questionnaire survey are as follows:

Transparency: while it is impossible to have absolute „objective‟, the

questionnaire methods provide a „transparent‟ set of research procedures. How

information has been collected and analysed is clear.

Succinct presentation: quantification can provide relatively complex

information in a succinct and easily understood form.

Comparability: methods such as longitudinal surveys and annually repeated

surveys provide the opportunity to study change over time, using comparable

methodology.

Capturing complexity: questionnaires can be an effective means of gathering a

wide range of complex information on individuals or organization on a

comparable basis.

In this research, a random sample of 300 respondents was selected, with the objective

that a mix of respondents with and without casino gaming experience could be

gathered. Convenience sampling was adopted for this study, which had a pre-

established criterion that the survey was to be addressed mainly to locals so as to

adequately gather the sentiments of this core target group. The respondents were

reached out via face-to-face surveys mostly at cafeterias, shopping areas, offices and in

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the work place. Nevertheless, the sufficient number of responses was obtained from

emails and short interviews to colleagues, friends, and relatives with or without

gaming experience.

The survey was done via two channels. One, respondents were mainly given

hardcopies of the survey forms to fill in, or they were given the softcopies to complete

via emails. In order to gather a wide spread of the respondents, respondents targeted

were aged between 21 to above 60 years old. Where time permits, the surveys were

executed with short informal interviews. However, this was not always possible as

respondents generally preferred to get it done as quickly as possible. The results were

computed in percentages to evaluate the proportion of respondents with regard to the

responses.

3.3 Research Procedures

The procedures of this research involve three different steps such as data collection,

data presentation and data analysis. Data collection includes collecting data from both

primary source and secondary source. Zikmund (2003) stated that primary data are

data collected and recorded for the purpose of the ongoing project at hand. In this

dissertation, questionnaire is used as a primary data collection method. The survey was

done based on cross-sectional study. Cross-sectional study is a study that is done at a

single point of time which involves various segments of a population. Meanwhile,

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secondary data refers to data that already assembled by someone else in the past that

can be used as a supporting fact for researcher (Zikmund, 2003).

3.3.1 Primary Data

Zikmund (2003) stated that primary data are data collected and recorded in the purpose

of the ongoing project at hand. There are eight methods in collecting the primary data:

door-to-door interview, executive interview, mall intercept, central location telephone

interview, direct computer interview, self-administered questionnaires, ad hoc mail

surveys, and mail panels (McDaniel Jr. & Gates, 1998). From the eight methods

mentioned, the researcher used self-administered/self-administrated questionnaire as

the way of collecting primary data for this research. Zikmund (2003) describes self-

administrated questionnaire as a set of questions that is answered by the respondent

rather than by an interviewer. In self-administrated questionnaire, researcher is

required to give clear written-questions to the respondent instead of good interviewing

skill (Zikmund, 2003).

3.3.2 Secondary Data

Secondary data are data that are already assembled by someone else in the past that

can be used as a supporting fact for researcher (Zikmund, 2003). Secondary data can

be used by researcher in various ways such as providing information to resolve the

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investigated problem, as a valuable source of new ideas that can be explored later

through primary research, serves as a prerequisite to collecting primary data, providing

useful information in planning the similar studies, helps to define the population,

select the sample in primary information collection, define the parameters of primary

research, and serves as a reference base against which to compare the validity or

accuracy of primary data. Therefore, for the purpose of this dissertation, journals,

research paper, periodicals and internet resources are used as supporting information.

3.3.3 Sample Size of Primary Data

A sample is selected from the population. The larger the sample the more chance it has

of being representative of the population. A sample that is not representative of the

population is described as biased. The whole process of sample selection must be

aimed at minimizing bias in the sample. The process of random sampling aims to

provide a representative sample and to reduce bias (Zikmund, 2003).

There are a few research methods to conduct this study. A qualitative, or quantitative,

or case study can be selected for this approach. Studies based on research articles are

not effective due to the limited publications available and they were not written for

this project‟s purpose, hence may be inaccurate and biased. Conducting case studies

would however gather information that skewed towards that particular IR‟s business

objectives and climate, hence producing limited credibility. For this case, majority of

the primary data gathering was done via a questionnaire-based survey to evaluate on

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attitudes of respondents towards the establishment of IRs, while secondary data

collection was done via other sources like newspapers and casino related websites. It

would then be developed with strategies based on theses expectations.

3.4 Method of Data Analysis

Data analysis is the heart and soul of quantitative research. For the purpose of this

research, Likert Scale method is used. Likert Scale, frequently known as “Agree-

Disagree” Scale, was first published by psychologist Rensis Likert in 1932 (Ian, 2004).

The technique presents respondents with a series of attitude dimensions, for each of

which they are asked whether, and how strongly, they agree or disagree, using one

number of positions on a five-point scale (Ian, 2004).

3.4.1 The Survey Questionnaire

The survey questionnaire in this research, as shown in Appendix A, consisted of six

sections, from “A” to “F” and was designed to ensure the anonymity of the

respondents. The first section, “A” dealt with the demographic issues regarding the

respondents, while the second and third sections, “B” and “C‟ were evaluating

gambling behaviours. The fourth and fifth sections, “D” and “E” investigated the

perceptions of potential social and economic impacts with the casinos in Singapore,

and the final section, “F” worked on the general opinion towards the development of a

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casino within the IRs. The questions are designed using the five-point Likert Scale (1-

Absolutely Disagree, 2-Moderately Disagree, 3-Neutral, 4-Moderately Agree and 5-

Absolutely Agree), as well as open-ended questions for respondents‟ feedback and

comments.

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CHAPTER 4

ANALYSIS AND FINDINGS

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4. ANALYSIS AND FINDINGS

4.1 Introduction

Data Analysis in Quantitative Research is the major part of a Survey. Using the SPSS

(Statistical Package for the Social Sciences), which is a comprehensive and flexible

statistical analysis and data management system it can generate charts, tabulated

reports and conduct complex statistical analyses for this research. In this chapter, it

provides insight to the conclusions drawn from some of the feedback and analyses,

that are based on the responses received for the survey.

4.1.1 Characteristics of Respondents

Among the respondents surveyed were professionals, business executives, clerical

staffs, technicians, airline crew, students and housewives. They were all of different

ages and selected randomly from cafeterias, shopping areas, offices and work place.

Airline crews were among those who visited the casinos more often due to the nature

of their work and opportunities to travel overseas. Although they might not be

gambling there, most of them would not mind to visit the casino, especially if it is

situated nearby their hotel during their stay over. These respondents provide a good

mix with different educational background and income level.

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4.2 Analysis of Data and Findings

SECTION A

FIGURE 4.1: NATIONALITY

Based on the survey of the 300 respondents, as shown in Figure 4.1 above, there were

85.7% Singaporeans, 11.3% Permanent Residents (PR) and 3.0% others or foreigners.

Although the PRs and others contribute less than 15%, the number is constantly

changing. As Singapore is a small country, it needs foreign talents and workers.

Currently, skilled workers and professionals are sought from different parts of the

world while unskilled workers are predominantly sought from the Asian region. Of

the 4.8 million people currently residing in Singapore, about 478,000 are PRs (source:

Singapore Immigration). The profile of these PRs include students, professionals and

entrepreneurs who decided to stay in Singapore after finishing their studies,

establishing their careers or own businesses.

3.0% 11.3%

85.7%

Others

PR

Singaporean

Nationality

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FIGURE 4.2: GENDER

As shown in figure 4.2 above, male casino goers seemed to be more than the female

casino goers, but the difference is relatively small. According to a research by

Thomas A. and Moore S. (2003), there were important differences between male and

female gamblers. For female gamblers, loneliness, boredom, anxiety, depression and

avoidance coping were all positively related to problem gambling. The research

suggests that female problem gamblers gamble as an escape from dysphoric moods.

Even though male problem gamblers expressed more negative effect than male non-

problem gamblers, there was no evidence to suggest that negative mood was a

precursor rather than an outcome of gambling behaviour. Although it may be

premature to state that Singapore's female population will be affected, nonetheless,

such possibility would likely to affect some of the families based on this study.

43.3%

56.7%

Female

Male

Gender

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FIGURE 4.3: AGE GROUP

The age groups of the respondents are shown in Figure 4.3 above. The survey showed

that a good majority of respondents are familiar or at least know about casino gaming

and understand what a casino is like. This made up a good representation for the

addictive nature of gambling. The majority of those who visited the casinos are

generally between the ages of 31 and 50, which imply that gaming revenue would

generally come from these age groups.

4.7%

14.0%

29.3% 30.3%

21.7% 60 above 51-60 41-50 31-40 21-30

Age

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FIGURE 4.4: MARITAL STATUS / EDUCATIONAL LEVEL

Tertiary/University and higher

Jr College/Pre-U Diploma

Sec level Pr level No formal education

Highest Education Level

140

120

100

80

60

40

20

0

Count

43.0%

33.6%

19.7%

3.0% 0.7%

widow/widower

divorce/separated

married single

Marital Status

200

150

100

50

0

Count

1.0% 2.0%

62.0%

35.0%

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The analysis in Figure 4.4 above, shows that respondents, who are married (62%) and

have Secondary education and above (76.6% with Diploma or higher), visit the

casinos more than those without any formal education or with only Primary education.

This reflects on the earning capacity of the respondents and their ability to travel for

vacation. Although this does not imply that the respondents from these categories are

going to the casino to gamble, it shows that they are better educated with higher

earnings and their ability to spend. Interestingly, there were more married people than

those who are single that visited the casinos.

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FIGURE 4.5: EMPLOYMENT STATUS

Although it is quite obvious that the majority are respondents with full-time

employment, which made up more than 90% that had visited the casinos, it is also

interesting to note that the category for housewives is higher (2.1%) than the others.

This shows that housewives have more free time and perhaps better financial

affordability, as compared with the students, and those working part-time. It could

also be due to boredom and loneliness for housewives to visit the casinos, according to

a research conducted by Thomas A. and Moore S. (2003).

Student Retired Housewife Unemployed

Part-time Full-time

Current Employment Status

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

Percent

1.3% 1.3%

2.1%

0.7% 1.3%

93.3%

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FIGURE 4.6: REPONDENTS' ANNUAL INCOME

From the analysis above, it is clear that income level plays an important part when it

comes to casino gaming. Generally, the respondents in Column "B" (income bracket

of more than S$30,000) are the highest followed by respondents in Column "C"

(income bracket of more than S$50,000). This means that these two categories are

financially stable and can well afford to gamble, whereas respondents in Columns "D"

and "E" are not so keen in gambling. Although this does not mean that those in

Column "A" with less than S$30,000 income are not financially stable, it all depends

on the individual's financial commitments. In most cases, people in this income

bracket are usually the younger ones who are mostly single and able to gamble with

spare cash, but it may not be for those who are married with family and children

earning less than S$30,000 per annum.

> S$120,000 between

S$80,001-S$120,00

between S$50,001-S$80,000

between S$30,001-S$50,000

< S$30,000

Annual Income

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Percent

A

B

C

D E

11.7% 10.7%

25.0%

29.0%

23.6%

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SECTION B

Question:

Are you familiar and have you visited a casino in other countries (places) before?

FIGURE 4.7: REPONDENTS' GAMBLING EXPERIENCE

Based on the respondents feedback, many of them had been to a casino and are quite

familiar especially to nearby casino, Genting Highlands Casino and Resort. They

would not mind to visit the casino if there is one in the Singapore Integrated Resort for

experience. Most of them felt that Singapore should have something interesting to

revitalise its tourism industry, although they have yet to consider the admission fee

that will be imposed for Singaporeans, which will be discussed in the later chapter.

22.3%

77.7%

No Yes

Gambling

Experience

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SECTION C

FIGURE 4.8: FREQUENCY OF GAMBLING

From the analysis, 43.0% of those surveyed claimed to have visited a casino at least

once a year, 15.7% at least once in 6 months, 5.0% once in a month, 0.7% once a week

and 1% almost daily. The frequency for gambling implies that people do not go to the

casino as often, but generally for leisure and other non-gambling form of

entertainment. There were 34.6% who claimed that they would visit the casino, but

they are not interested in gambling. The data showed that people seemed to visit the

casino mainly for leisure and probably for the sake of getting the experience,

especially when they are travelling with friends and relatives. However, there are

some who believe that they could probably make a quick profit and these are the

people who visit the casino almost daily or at least once a week.

34.6% Not interested

43.0% at least once a year

15.7% at least once in 6 months

5.0% at least once a month

0.7% at least once a week

1.0% almost daily

Not interested at least once a year

at least once in 6 months

at least once a month

at least once a week

almost daily

Gambling Time

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FIGURE 4.9: TIME SPEND IN CASINO

With the observations on the profile of the respondents, quite a number of them had

visited the casinos. The majority of the respondents had visited the casinos and most

of them had gambled in the casinos with at least once in a year. Whether they were

there for the purpose of gambling or for other entertainment, this represented a good

majority of respondents who are familiar or at least know what casino gaming is like,

and understand the atmosphere of casinos. From this observation, quite a large

number of them or 35.7% claimed to have spent 2 hours or less in the casino, while the

second largest group or 25% claimed to have spent between 2 to 5 hours. Another

group or 4.1% who spent between 5 to 12 hours are likely to be those who are serious

in gambling. However, the second largest group (34.5%) in this analysis is the non-

gamblers, who claimed that they are not interested in gambling.

34.5%

0.7%

4.1% 25.0%

35.7%

Not interested > 12 hrs 5 hrs - 12 hrs 2 hrs - 5 hrs < 2 hrs

Average time spend in gambling in a casino

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FIGURE 4.10: MONEY SPEND IN CASINO

Among those who were surveyed, many of them have travelled overseas for business

or vacation, and visited the casinos, 52.3% are prepared to stake with S$1,000 or less

on the gambling table, while 9.6% of this portion of respondents would prepare

between S$1,000 to S$5,000. Hence, a substantial amount of the respondents are

“small-time gamblers”, who played with low stakes. Only 2% would be gambling

with S$5,000 or more, who are apparently the more serious casino gamblers. Of the

casinos visited by the respondents, the most frequent one is the Genting Highlands

casino, followed by Las Vegas. This shows that IRs with casinos are more popular,

such as Genting and Las Vegas, which have established with the IR concept. The less

frequent casinos are the ones at Macau, Hong Kong, Batam and Korea.

35.4%

0.7%

2.0% 9.6%

52.3%

Not interested > S$10,000

between S$5,001 - S$10,000

between S$1,001 - S$5,000

< S$1,000

Average money prepared to gamble in a casino

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SECTION D

TABLE: 4.1: RESPONDENTS’ PERCEPTION ON THE

SOCIAL IMPACTS ARISING FROM THE IRs

(All responses are shown in percentage %)

Social Impact Absolutely

Disagree

Moderately

Disagree Neutral

Moderately

Agree

Absolutely

Agree

Increase in Crime Rate 4.0 12.3 24.0 37.0 22.7

More Divorce/Separation 4.3 10.3 27.4 37.0 21.0

More Child Neglect or

Spouse Abuse 4.3 10.3 21.0 41.7 22.7

More Personal Bankruptcy 1.7 4.3 13.3 42.0 38.7

More Suicidal Attempts 4.0 10.7 24.3 35.0 26.0

More Gambling Addiction 0.7 5.0 9.7 40.0 44.6

Although the IRs may perceive to be good for the economy, there is apprehension that

the casino will spur gambling addiction and gambling problems. As more than half of

the 300 respondents (42% moderately agree and 38.7% absolutely agree) are of the

opinion that social repercussions would manifest through more family problems,

bankruptcies and the degree of gambling addiction. Respondents are most concerned

with the casino‟s impact on gambling addiction and other related problems. Hence,

measures to curb the prevalence of problem gambling are the primary concern when

drawing up social safeguards.

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FIGURE 4.11: RESPONDENTS' OPINION ON

INCREASE IN CRIME RATE

Most respondents (37% moderately agree and 22.7% absolutely agree) agree that there

will increase in crime rate and it is just a matter of how the government is going to

tackle these problems. Respondents are concerned that there would be increase in

organised crimes especially alcoholism, prostitution, drug trafficking and money

laundering, which are prevalent in countries like Macau and Hong Kong, and

Malaysia.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact- Increase in Crime Rate

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

22.7%

37.0%

24.0%

12.3%

4.0%

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FIGURE 4.12: RESPONDENTS' OPINION ON

DIVORCE/SEPARATION

Generally, families will be affected if one of the family members is heavily indulged

in gambling, and for cases where both husband and wife are addicted to gambling will

be even worse. Although 27.4% had stayed neutral in the survey, 37% of the

respondents moderately agree and 21% absolutely agree. This undoubtedly shows that

people are concerned that the casinos will cause more cases of divorce and separation,

and that would lead to more broken families.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - More Divorce/Separation Cases

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

21.0%

37.0%

27.4%

10.3%

4.3%

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FIGURE 4.13: RESPONDENTS' OPINION ON

CHILD NEGLECT/SPOUSE ABUSE

Although it is a known fact that quite a number of families were affected by parents or

spouses who are pathological gamblers, 41.7% of the respondents chose to moderately

agree and 21% stayed neutral. However, all of them believe that families can be badly

affected by gambling and spouse and children are the victims to such abuse. Reports

have shown that a number of cases happened and to some extent the family was

completely ruined over the loss of money in the casino.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - More Child Neglect/Spouse Abuse

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

22.7%

41.7%

21.0%

10.3% 4.3%

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FIGURE 4.14: RESPONDENTS' OPINION ON

CASES OF PERSONAL BANKRUPTCY

Based on the survey, 38.7% absolutely agree and 42% moderately agree. According

to feedback from the respondents, gamblers tend to lose control over gambling and

become desperate after losing heavily. Gamblers always believe that they can recover

their losses over the gambling table and many of them would not hesitate to resort to

borrowings from credit cards or loan sharks even if they have to pay higher interests.

Hence, when their loans become excessive and they are unable to pay up, they declare

bankrupt.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - More Personal Bankruptcy

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent 38.7%

42.0%

13.3%

4.3% 1.7%

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FIGURE 4.15: RESPONDENTS' OPINION ON

CASES OF SUICIDAL ATTEMPTS

Out of the 300 respondents, more than 50% (26% absolutely agree and 35%

moderately agree), felt that gambling could result in more suicidal cases if it is not

properly managed. Attempted suicide after losing a bet is not unheard of. In many

cases, the gambler contemplates suicide and sees death as the only exit strategy. This

is the point where the gambler who struggles with gambling problems may experience

serious social, emotional, financial and health consequences. The problem can

become overwhelming with feelings of shame and failure, and suicide appears to be a

solution to him for all these problems.

.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - More Suicidal Attempts

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

26.0%

35.0%

24.3%

10.7%

4.0%

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FIGURE 4.16: RESPONDENTS' OPINION ON

GAMBLING ADDICTION

There is little debate about the prevalence of gambling addiction. Gambling itself has

been around for centuries, as have the side effects accompany it. However, it has not

been until recent decades that gambling problems have received significant attention

from the medical and psychological communities. The response from the survey

between gambling addiction and suicidal attempts appeared to be correlated, with

44.6% absolutely agree and 40% moderately agree that gambling addiction has a

social impact. Gambling addictions are believed to be on the rise with more than ever

due to the increasing opportunities to gamble. There are more betting booths for

sports betting, 4-D, TOTO, horse racing and overseas casinos than before. Even if

there is no casino, there is always telephone betting and internet betting, which is truly

an addiction for the gambler that is difficult to avoid.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact- More Gambling Addiction

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

44.6%

40.0%

9.7%

5.0%

0.7%

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TABLE: 4.2

RESPONDENTS’ PERCEPTION TOWARDS CASINO GAMING

(All responses are shown in percentage %)

Social Impact Absolutely

Disagree

Moderately

Disagree

Neutral Moderately

Agree

Absolutely

Agree

Gambling is a Social

Vice 1.7 7.0 29.0 40.6 21.7

Gambling is against

Moral Values and

Standards.

9.3 16.3 43.4 19.3 11.7

Gambling has an adverse

effect to Singapore 4.7 17.6 32.0 30.0 15.7

Based on the perception of the respondents on the three categories, most respondents

felt that casino gaming is a social ill. However, they would rather stay neutral and

would not like want to commit in agreeing totally with it. As indicated above, they

preferred to be neutral or agree moderately, which means that social ills would

somehow have no adverse effect if it is controlled. Respondents agree that gambling

is a social vice, but they believe that there are adequate measures from the

government, as Singapore is reputed to have strict law and order. There are

government agencies, such as the Casino Regulatory Authority (CRA) and the

National Council on Problem Gambling (NCPG) already established to tackle these

problems.

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FIGURE 4.17: RESPONDENTS' OPINION ON

SOCIAL VICE

__

Although few would deny that gambling is more of a social vice, 29% preferred to

stay neutral which is the second highest in this category of the survey, and 40.6% just

moderately agree. Respondents felt that since gambling is legalised and many

countries are now looking into various ways to promote tourism with casinos being the

hot topic, there is little they could do to stop it. Many countries have decriminalised

gambling because of its perceived economic benefits.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - Gambling is more of Social Vice

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

21.7%

40.6%

29.0%

7.0%

1.7%

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FIGURE 4.18: RESPONDENTS' OPINION ON

THE MORAL VALUES AND STANDARDS OF SINGAPORE

Quite a large number of respondents are unsure or would not want commit in whether

gambling is against the moral values and standards of Singapore. They (43.4%)

preferred to be neutral. Between those who moderately disagree (16.3%) and

moderately agree (19.3%) is also very marginal. Undoubtedly, this appears to be a

difference in opinion. In looking at the analysis above, regardless of whether it is

legal, whether it is socially approved and culturally tolerated, whether people involved

are irreligious or whether it serves its political or economic end, it is after all the issue

of morality. It is neither undermined nor subservient to religion, society, culture,

economics, politics and the common law, according to feedback from some of the

respondents.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - Gambling against moral values/standards

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

11.7%

19.3%

43.4%

16.3%

9.3%

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FIGURE 4.19: RESPONDENTS' OPINION ON GAMBLING

IN THE CASINO WILL HAVE ADVERSE EFFECT TO SINGAPORE

__

Many had disagreed and opposed to the idea when the debate on whether there should

be a casino for Singapore. However, after going through the economic crisis and

people who lost their job, realised that the IRs had brought them job opportunities and

benefits, their mindset started to change. Although the majority (15.7% absolutely

agree and 30% moderately agree) felt that gambling has an adverse effect to

Singapore, their resentment of having a casino appeared to be wavering. This can be

evidenced with the 32% who do not want to commit and stayed neutral in the survey.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - Gambling has adverse effect to Singapore

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

15.7%

30.0% 32.0%

17.6%

4.7%

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TABLE: 4.3: RESPONDENTS’ PERCEPTION OF THE

ECONOMIC BENEFITS OF CASINO IN SINGAPORE

(All responses are shown in percentage %)

Economic Benefits Absolutely

Disagree

Moderately

Disagree

Neutral Moderately

Agree

Absolutely

Agree

IRs will deliver new Capital

Investment 0.3 1.3 9.7 46.7 42.0

IRs will revitalise Singapore‟s

Tourism Industry 0.3 1.3 10.4 48.0 40.0

IRs will increase Employment

Opportunities 0.3 2.0 11.7 33.3 52.7

IRs will increase local

Government revenue 0.7 0.0 7.3 33.3 58.7

IRs will improve Singapore‟s

GDP per capita 0.0 2.3 20.3 44.7 32.7

In general Singapore will have

more Economic Benefits 0.0 3.0 20.0 44.3 32.7

In summing the analysis above, many Singapore Residents felt that the IRs with

casinos in Singapore would serve as a catalyst for economic development. Almost all

the respondents believe that a casino would have a positive impact due to the ability to

revitalise the tourism industry and increase in local government revenue via tax

receipts. They believe that IRs will have positive effects on the tourism industry,

leading to a higher influx of tourists, which is in line with the Singapore Tourism

Board‟s aim of turning Singapore into a tourist hub. Employment opportunities are

also believed to increase. Hence, there is a general consensus that the development of

IRs in Singapore will eventually lead to a better standard of living for Singaporeans,

especially after going through the current economic crisis where unemployment has hit

Singapore badly.

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SECTION C

FIGURE 4.20: RESPONDENTS' OPINION ON

NEW CAPITAL INVESTMENT

Las Vegas Sands (LVS), which was awarded the bid for Singapore's first IR had

invested more than US$3 billion to develop The Marina Bay Sands. It is one of the

largest investments in the world for a single IR, which was expected to generate an

additional S$2.7 to Singapore's GDP. Similarly for Genting, it had also committed

with a total investment of S$5.2 billion (Channelnewsasia, Oct 2008). There is no

denial about this fact, and respondents (42.0% absolutely agree and 46.7% moderately

agree) generally felt that this is a stimulus for Singapore's economy.

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Economic Benefits - deliver New Capital Investment

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

42.0%

46.7%

9.7%

1.3% 0.3%

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FIGURE 4.21: RESPONDENTS' OPINION ON

REVITALISING SINGAPORE'S TOURISM INDUSTRY

Singapore's tourism industry has reached a 'matured' stage and there will be little

change unless large scale rejuvenation is carried out. The first impact on the

upcoming IRs is the marketing efforts towards Singapore's tourism industry. There

will be media, conferences and many other marketing tools that will contribute to the

success in making Singapore as a tourism destination worldwide. This will boost

Singapore's attractiveness as a premium destination for both business and leisure.

There will be more tourist arrivals and this will certainly generate revenue in the

tourism industry and other related sectors. The response was agreed by almost 90% of

the respondents (40% absolutely agree and 48% moderately agree).

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Economic Benefits - revitalise Singapore's Tourism Industry

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

40.0%

48.0%

10.4%

1.3% 0.3%

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FIGURE 4.22: RESPONDENTS' OPINION ON

INCREASE IN EMPLOYMENT OPPORTUNITIES

Casino entertainment is both capital and labour intensive. No other economic

development tool can generate as many jobs as fast, especially for Singapore after

seeing its tourism on the decline, and going through the economic crisis. Casinos

require relatively large staffs, in fields diverse as accounting, marketing, restaurant

management and security, which is clearly evident with the positive response from the

survey; almost 90% responded positively (52.7% absolutely agree and 33.3%

moderately agree).

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Economic Benefits - increase Employment Opportunities

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

52.7%

33.3%

11.7%

2.0% 0.3%

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FIGURE 4.23: RESPONDENTS' OPINION ON

INCREASE IN LOCAL GOVERNMENT REVENUE

Almost all the respondents agree (58.7% absolutely agree and 33.3% moderately

agree) that the IRs would have a positive impact and generate revenue. Going

forward, Singapore visitor arrivals are forecast to increase to 17 million by 2015 as the

region overcomes an economic slowdown and health scares including the H1N1

pandemic (Straits Times, 12 Oct 2009). This is in line with the opening of the two

IRs; Marina Bay Sands and Resort World at Sentosa, which are scheduled to open in

late 2009 or early 2010.

Absolutely Agree

Moderately Agree

Neutral Absolutely Disagree

Economic Benefits - increase Local Government Revenue

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

58.7%

33.3%

7.3% 0.7%

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FIGURE 4.24: RESPONDENTS' OPINION ON

IMPROVEMENT OF SINGAPORE'S GDP PER CAPITA

The IR will bring in entertainment and conventions, hospitality and retail outlets, and

it will help to increase the demand for hotel services, greater patronage at restaurants

and heightened convention and exhibition activities, and hence, providing a

tremendous economic boost. The integrated resort is expected to generate an

additional S$2.7 billion to Singapore's annual Gross Domestic Product (GDP) and to

create 30,000 additional jobs throughout the economy by 2015. Respondents are clear

about this and there were 44.7% moderately agree and 32.7% absolutely agree.

Absolutely

Agree Moderately

Agree Neutral Moderately

Disagree

Economic Benefits - improve Singapore’s GDP per capita

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

32.7%

44.7%

20.3%

2.3%

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FIGURE 4.25: RESPONDENTS' OPINION

IRs WILL HAVE MORE ECONOMIC BENEFITS

There will be enormous economic benefits as the global economy rebound. Apart

from the increase on visitor arrivals, Singapore could become a hub for private equity

funds betting on the leisure and tourism sector amid a growing regional interest in the

IRs. Governments in Asia are becoming to view these resorts as a tool to generate

economic development and inbound tourist arrivals. What this means is that

Singapore could well be positioned to act as a hub for private equity funds or hedge

funds that are looking to gain their exposure to the leisure tourism sector with

Singapore's strong strategic focus and knowledge of the industry (Channelnewsasia, 12

April 2007).

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Economic Benefits - generally more economic benefits for Singapore

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Percent

32.7%

44.3%

20.0%

3.0%

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CHAPTER 5

DISCUSSION

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5. DISCUSSION

In every business there is always success or failure. With the completion of the

analysis and findings, the discussion on the socio-economic impact is on how the two

integrated resorts would succeed and maximise economic benefits, and minimise the

potential social costs. The success of the two IRs is relatively important to Singapore,

as the government had given full support to the project. It is generally agreed that

casinos in the IRs would bring both the social repercussions and economic benefits to

Singapore, according to the survey.

In the analysis on whether the benefits will outweigh the social ills, respondents are

confident that the economic benefits would outweigh the social ills. There were 83%

of the respondents, who felt that economic benefits will outweigh the social ills, while

only a 17% (as shown in Figure 5.1) felt otherwise. This could be as a result of the

government's assurance and efforts to ensure that all social costs anticipated would not

be left unattended. A large majority of Singaporeans are supportive of the launch of

the IRs. Although the respondents are divided over the idea of having a casino, a good

majority however responded in favour and only a minority said that they are against

and would not like to have casinos in Singapore. Gambling is not a driving force for

people visiting the IRs, because among those who responded that they would visit the

casino, many of them expressed that they are there not to gamble but to enjoy the

facilities or to seek other forms of entertainment.

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FIGURE 5.1: RESPONDENTS’ OPINION ABOUT THE IRs

Economic benefits versus Social ills

17.0%

83.0%

No

Yes

Economic Benefits

will outweigh

Social ills

Absolutely Agree

Moderately Agree

Neutral Moderately Disagree

Absolutely Disagree

Social Impact - Gambling has adverse effect to Singapore

100

80

60

40

20

0

Count

15.7%

30.0% 32.0%

17.7%

4.6%

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5.1 Socio-Economic Impact

As discussed in chapter 1, socio-economists focus on the social impact of some sort of

economic change, which is basically a study of the relationship between the economic

activity and social life. Following are some of the factors that may have impact on the

socio-economic aspects of the IRs:

5.11 Economic Factors

There are enormous potential economic benefits that could arise from the upcoming

IRs. The general concern about the social ills that casinos may bring upon the society

has validity, but there are proposed safeguards in negating these effects thereby

allowing Singapore to enjoy the immense economic advantages that come with IRs.

Listed below are some of the economic benefits:

i. Increase in tourism and enhances Singapore‟s status as a tourist hub.

ii. Increase in revenue.

iii. Increase in GDP per capita.

iv. Increase in employment opportunities.

v. It enhances Singapore‟s position as a leading destination for Meetings,

Incentives, Conventions and Exhibitions (MICE).

vi. It boosts Singapore as an international hub for business and finance.

vii. It benefits other industries such as retail, food and beverage, hotel, etc.

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viii. The IRs have also attracted students from the region to study tourism and

hospitality in Singapore. Schools such as the Polytechnic, East Asia Institute

of Management (EASB), Management Development Institute of Singapore

(MDIS) and Singapore Hotel and Tourism Education Centre (SHATEC) have

benefited as a result of the IRs.

ix. Property price in Singapore has increased along with the development of the

IRs and Sentosa has become a sought after haven for the rich, who yearns to

own an elite part of Singapore. For example, when the Sail @ Marina Bay was

first launched in November 2004, the average price was S$950 psf., and over a

few years‟ time, the price had increased to S$2,200 psf. as at Sep 2009, an

average of more than 100% increase (Urban Redevelopment Authority of

Singapore).

FIGURE 5.2: SINGAPORE PROPERTY – THE SAIL @ MARINA BAY

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5.1.2 Cost-and-Benefit Analysis

The tourism-related industries will stand to reap the spin-off benefits of the IRs. Hotel

occupancy will increase, shops, restaurants and other tourist attractions around

Singapore will benefit positively from the creation of a vibrancy and buzz that will

promote Singapore as a top travel destination. The IRs will strengthen Singapore as an

aviation hub and enhance its appeal in the hosting of conventions and exhibitions. The

corporate market is another enormous new tourist segment which Singapore hopes to

capture. Generally, corporate visitors spend much more per person than any other

group of tourist, according to reports.

With this strategic advantage, the economic benefits can be enormous and it would

certainly outweigh the social costs. Tourism has always been an important sector for

the Singapore economy. The more attractive it is as a tourism destination, the easier it

is to develop into a convention and exhibition industry, and an aviation hub that

depends significantly on how attractive it is to the overseas leisure and business

visitors.

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CHAPTER 6

CONCLUSION AND RECOMMENDATION

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6. CONCLUSION AND RECOMMENDATION

6.1 Conclusion

The opening of two IRs is likely to herald a whole new host of economic opportunities

– as well as concerns for the future. There are substantial economic benefits from the

opening of the IRs, either directly or indirectly through multiplier effects, posing great

prospects for Singapore's continued economic growth and advancement. The potential

investment inflow was estimated up to S$5 billion and it would contribute to a 2.77

per cent increase in GDP. With the opening of the two IRs, Marina Bay Sands and

Resort World at Sentosa will provide a host of opportunities with the creation of

35,000 jobs.

The legalisation of the casinos will help to prevent the outflow of revenues, amounting

to more than S$2 billion annually, which leaked through overseas online betting and

also illegal betting. The tourism industry will receive a shot in the arm with the

opening of the IRs. It is hoped that the amenities and attractions of the IRs will boost

visitor arrivals, increase average length of stay and entice tourists back for repeat

visits. Singapore will also be poised to woo a new group of high-rolling tourists and

visitors from the IRs' casinos and the Meeting, Incentives, Conventions and

Exhibitions (MICE) with the new convention and hotel facilities.

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6.1.1 Socio-Economic Impact

Singapore‟s strong reputation as a business and convention hub in Asia has certainly

made an impact and also a home base for some of the region‟s top trade exhibitions.

The MICE sector can be considered a key factor for the Singapore‟s tourism industry.

The opening of the IRs will also allow Singapore to maintain its competitive edge, as

other countries in the region, like Macau, have already aggressively positioned

themselves for a slice of the gaming industry. Apart from the desirable economic

benefits, which the IRs will potentially bring to Singapore, the IR project does have its

detractors. Much of the opposition stemmed from concerns is about the social

drawbacks such as gambling addiction. Excess expenditure by compulsive gamblers

is a valid concern.

However, avenues for gambling are already present, along with the associated

problems. An overwhelming surge in social problems caused by the establishment of

casinos is deemed unlikely, but nevertheless, there are adequate safeguards set up by

the government to tackle any of these social problems. Looking at the current

economic situation, the IRs arrived at a timely basis. The number of new job openings

would certainly boost the local economy, as many people who lost their jobs or were

retrenched during the crisis would be able to find new job replacements and some had

already taken up job offers.

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Singaporeans so far seemed to have confidence in the IR industry, with many people

making their way to seek for jobs in the IRs since the opening day of the IR career fair.

However, what happens 10 years down the road and how well will the IRs be doing?

That is something remains to be seen. How the public would react to the gaming

industry in Singapore will very much depend on the government‟s continued

involvement and strict control in the gaming industry. It‟s something that has been

restricted by the government since “the beginning of time” and for how long and

successful it would be, again depends on the IR management and the government.

Socially it may turn out to be more harm than good in the long run, if more

Singaporeans indulge in gambling as a form of pastime. Furthermore, if the local

economy becomes overly dependent on the IRs, dire consequences may result if the

IRs close down. Imagine the number of 35,000 jobs that are lost at that point in time,

as well as the confidence level of the people if that were to happen, and Singapore‟s

economy badly affected. But for whatever that happens, Singapore government will

never allow it to fail, and that is the assurance given by the Prime Minister when the

approval for the development of the IRs was granted.

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6.2 Recommendation

With the opening of a casino, more people may become addicted to gambling and the

number of compulsive gamblers and bankruptcies will increase. The social impact of

gambling is not only confined to the problematic gamblers and the immediate family

members. Even relatives and close friends will also be affected by their gambling

addiction. Many have seen how gambling has caused devastation to the family,

violence or even suicide as a solution to end all their miseries.

Apart from the crime rates that will be increased, compulsive gamblers may commit

crimes to satisfy their gambling needs. The presence of the casino is also likely be a

potential breeding ground for triad activities, prostitution, and money laundering. The

social consequences will erode the social fabric; tarnish Singapore‟s reputation and

image as an orderly, clean living, and vibrant society, which has been established over

the years. This may affect investors and tourists from coming.

Although it is inevitable to avoid these social consequences of the casino which is

associated with the IR, having gambling controls have proven to be effective.

Following are recommendations that would be able to resolve all these problems:

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6.2.1 Gambling Controls

i. The proposed casino entrance fee that will be imposed for Singapore citizens

and PRs; S$100 a day and S$2,000 per annum may not be enough to deter hard

core gamblers to visit the casino. For gamblers, they tend to believe that they

can win and the entrance fee of S$100 is not likely to stop them. Increasing the

entrance fee to S$200 a day and S$3,000 per annum would perhaps be a better

restraint.

ii. Spouses and family members can request that people with gambling problem

be denied admission to the casinos.

iii. People who are in debt or with poor credit records, people on public assistance

and bankrupts will be excluded.

iv. Locals should not be allowed to use credit cards, post-dated cheques or any

credit facilities from the casinos.

v. There should be no advertising by casinos in the local media.

vi. The new statutory board, Casino Regulatory Authority of Singapore (CRA), set

up under the Ministry of Home Affairs, to administer and enforce the Casino

Control act, should include the following functions:

a) Ensure that the management and operation of a casino is free from criminal

influence or exploitation

b) Ensure that casino gaming is conducted honestly

c) Regulate the operators so as to contain and control the potential of a casino

to cause harm to minors, vulnerable persons and society at large.

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With the setting up of the National Wellness Centre to provide needs for those

compulsive gamblers, and the National Council on Problem Gambling (NCPG) by the

Ministry of Community Development, Youth and Sports, the following functions can

be provided:

i. Public education programmes on Problem Gambling.

ii. Assess funding applications for preventive and rehabilitative programmes.

iii. Advise the government on the effectiveness of treatment, counselling and

rehabilitative programmes.

In this research, the survey showed that the large majority of respondents are well

aware that Singapore is putting more resources to tackle the gambling problem, and

they are confident that the government would be able to address all these problems

effectively. Conversely, with this framework of “Prevention, Outreach and

Treatment”, the social impact of the casinos can be resolved. Moving ahead, the IRs

are very likely to be a boon rather than a bane, which is more of an economic

prosperity of Singapore. A boost in the economic perspective would be starkly obvious

in the long run.

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APPENDIX A

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APPENDIX B

Respondent

General Comments (Positive) Question:

Do you think that the economic benefits of the IRs in Singapore will outweigh

the social ills?

001 Yes, Casino gambling and Formula One are all new and exciting events that

will transform Singapore.

002 Yes, something new and exciting are just waiting to happen.

003 Yes, casino can definitely boost Singapore‟s economy, but there will be social

breakup if not properly managed

004 Yes, Singapore‟s economy will certainly be better and property price increase

along with the development of the IRs.

005 Yes, it‟s good to have something new.

006 Yes, people will still gamble even though there is no casino.

007 Yes, Singapore government has taken preventive measure for these social ills.

008 Yes, but the government should take more precautionary measures in dealing

with the negative impact (if any) in the future.

009 Yes, IRs are welcome by tourists.

010 Yes, It is good to have IRs in Singapore

011 Yes, good news for gamblers but family bonding will be affected.

012 The pros will outweigh the cons, as gambling has become a social norm. Best

examples are 4-D, Toto and sports betting. Gambling is considered as a hobby

as long as it‟s done in moderation.

013 Yes, but illegal lending (loan sharking) has to be properly managed.

014 Yes, gambling is matter of self-discipline and has nothing to do with the IRs.

015 Yes, the economic benefits will certainly outweigh the social ills. Gambling is a

matter of self-discipline and for the IRs, casino contributes only 25%. The rest

such as hotel, convention and theme park contribute 75%.

016 Yes, in general there are pros and cons in every establishment, casino is only

part of it and it is usually targeted as a negative impact.

017 Yes, but I hope the government can stop Singaporeans from going, especially

those with criminal records.

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Respondent

General Comments (Negative)

Question:

Do you think that the economic benefits of the IRs in Singapore will outweigh

the social ills?

001 No, monetary value can never outweigh family and social values. We will see

more broken families and single parent families in the near future.

002 No, there will be social issues once casino gambling starts to operate.

003 No, it‟s not certain, only time can tell.

004 No, the social ills will eventually become economic problems.

005 No, how do you measure this? What yardstick? Question is not appropriate,

and it‟s not possible to compare meaningfully.

006 No, we have not quantified the negative impact and that may be substantial.

007 No, some talents may leave Singapore if there is casino.

008 No, Singapore has established itself as a clean and strict country which attracts

foreign investment, it should not allow casino to tarnish its reputation.

009 No, more problems will follow-up.

010 No, the negative impact will eventually show in the long run – it may not in this

generation.

011 No, social ills will have negative impact to the country.

012 No, social ills are hard to cure.

013 No, I believe most of the economic benefits will go to the foreign expatriates or

workers, and only a small percentage to the locals. Presently, the youngsters are

hanging out drinking and giving problems at the Clarke Quay. They will turn

their attention to the IRs, and gambling (besides drinking) will become another

social ill once the IRs are open.

014 No, learning from Cambodia, where there are kidnaps, robberies, thefts, etc, the

economic benefits would not be able to offset these damages.

015 No, short term benefits may not be able to offset the long term pain of social

ills.

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APPENDIX C

SPSS SURVEY DATA

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APPENDIX D

Singapore’s Unemployment Rate

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Unemployment Rate (%)

Annual Average 2.5 2.8 2.7 2.7 3.6 4.0 3.4 3.1 2.7 2.1 2.2 NA

Seasonally Adjusted as at

Mar 1.7 3.1 2.7 1.9 3.6 3.7 3.7 3.2 2.5 2.7 1.9 3.3

Jun 1.9 2.8 3.5 2.2 3.4 3.6 3.6 3.4 2.7 2.3 2.2 3.3P

Sep 3.2 2.9 2.0 2.8 3.6 4.8 3.0 3.3 2.8 1.7 2.3 NA

Dec 3.4 2.4 2.3 3.7 3.7 3.9 3.2 2.6 2.7 1.7 2.5 NA

Resident Unemployment

Rate (%)

Annual Average 3.5 3.8 3.7 3.7 4.8 5.2 4.4 4.1 3.6 3.0 3.2 NA

Seasonally Adjusted as at

Mar 2.4 4.2 3.8 2.6 5.0 5.0 4.9 4.2 3.3 3.8 2.8 4.8

Jun 2.6 3.7 4.7 3.0 4.5 4.7 4.7 4.4 3.5 3.1 3.1 4.6P

Sep 4.4 3.9 2.7 3.9 4.9 6.2 4.0 4.4 3.8 2.5 3.4 NA

Dec 4.7 3.3 3.1 5.2 4.9 5.2 4.2 3.5 3.7 2.4 3.6 NA

Resident Unemployed

Persons ('000)

Annual Average 54.4 60.8 59.4 62.0 81.0 91.2 78.4 74.9 67.6 56.7 62.9 NA

Seasonally Adjusted as

at

Mar 37.1 67.8 61.2 43.6 82.5 86.8 86.1 77.3 62.3 72.7 54.1 95.7

Jun 40.1 60.2 74.5 49.7 76.3 81.6 81.6 77.9 66.8 60.1 60.1 91.8P

Sep 71.0 64.0 44.7 66.6 82.5 109.1 70.4 80.7 70.6 47.7 66.6 NA

Dec 73.6 53.0 50.9 87.5 84.5 92.1 75.9 64.9 71.3 45.5 71.8 NA

Resident Median

Duration of

Unemployment as at Jun

(Weeks)

(Non-Seasonally Adjusted)

8.0 12.0 NA 8.0 12.0 12.0 12.0 NA 8.0 8.0 6.0 NA

Last Updated 31 July, 2009

Notes: P = Preliminary NA = Not available

Source: Ministry of Manpower

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APPENDIX E

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APPENDIX F

Source: Ministry of Manpower