INTERNATIONAL TOURISM INSTITUTE

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INTERNATIONAL TOURISM INSTITUTE
ECONOMIC IMPACTS OF SLOVENIAN GAMING INDUSTRY
USING TSA METHODOLOGY by Janez SIRŠE,
M.Sc. CEI COOPERATION ACTIVITY MEASURING THE
ECONOMIC IMPORTANCE OF TOURISM IN CEI MEMBER
STATES (focused on TORUISM SATELLITE
ACCOUNTS) Dolenjske Toplice, 17.-18. October 2007
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INTERNATIONAL TOURISM INSTITUTE

• The paper summarises the findings of the
  project Janez Sirše, Tina Vidjen, Janja Kalin,
  Dušan Luin Comprehensive Evaluation of the
  Economic Impacts of Gaming in Slovenia Using the
  TSA Tourism Satellite Account Method,
  Ljubljana, International Tourism Institute, 2006
• Janez Sirše M. Sc. is Director of International
  Tourism Institute in Ljubljana and Senior
  Lecturer at the Faculty of Economy in Ljubljana.
  

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• THE PURPOSE OF THE STUDY

• The gaming tourist products account
  approximatelly 25 of Slovenian tourism offer.
  Most of the revenues generated by casinos are net
  inflows from abroad, since the bulk of guests
  visiting Slovenia because of their interest in
  gambling are represented by foreign visitors.
• Gaming brings about both positive and negative
  impacts to the local communities and the national
  economy and therefore it can be assessed from
  different points of view. For the purpose of our
  study, we study gaming as an economic activity.
  We have used the method of Tourism Satellite
  Accounts to assess the Slovenian gaming industry
  from the point of view of its actual and
  potential significance to local, regional and
  national economies, as well as for the
  development of a comprehensive range of tourist
  products.

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• CASINOS DEVELOPMENT TRENDS

• Recent worldwide trends of land-based casinos
  are heading mostly into two directions
• the offering of smaller casinos catering to the
  need of local populations to satisfy their urge
  for gambling
• the development of gaming-and-entertainment
  tourist resorts that offer more comprehensive
  experiences and relaxation.
• Such all-inclusive experiences in modern
  gaming-and-entertainment resorts designed to a
  certain theme and expressing the typical offer of
  the location comprise entertainment programmes,
  wellness products, business conventions,
  festivals, food and beverage, cultural events,
  recreation, sports and other attractions.

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• ECONOMIC IMPACTS OF CASINOS

• The positive and negative impacts of gaming can
  be divided into the following categories
• Casinos operating mostly in the domestic market
  They represent mainly a tool for the
  re-distribution and the charging of additional
  taxes on the income of domestic subjects. Casinos
  of this type, by rule, induce a downward
  development spiral.
• Casinos attracting guests from foreign economies
  The income and profits spent come from foreign
  economies, thus generating net inflows of foreign
  money. In addition to that, gaming guests buy
  other tourist services, as well. The more
  structured the gaming tourist product, the
  stronger the effects of the multiplier of
  gaming-guest spending.
• To absorb positive multiplier effects of
  spendings in casinos local, regional or national
  economies has to have an adequate size and
  structure. They need to be involved in
  development plans and investments in gaming at
  the right time.

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• GAMING INDUSTRY IN SLOVENIA
• IN 2004

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• TSA FOR GAMING INDUSTRY IN SLOVENIA for 2000
  2003

• Gaming visitors are tourists travelling to a
  location that is not their usual environment,
  where spending on games of chance is their main
  motive for travel.
• Gaming tourist consumption includes visitor
  spending on services offered by gaming companies
  visitor spending on gaming services, including
  entrance tickets and tips, as well as spending on
  other services offered by casino companies
  accommodation, food and beverage, transport,
  travel agency services, retail, events and
  conventions.
• Gaming tourist offer includes gaming, business,
  convention, cultural, festival, sports, wellness
  and other services. The gaming TSA therefore uses
  the same classification of products (typical,
  connected and specific) as proposed by the TSA
  framework and the system of national TSAs for
  Slovenia. The only difference in the
  classification of products and services on the
  basis of the list recommended by the WTO
  (TSA/TCP) is that the gambling and betting
  activities have been separated from recreational
  and other leisure activities. In addition to the
  activity of casinos, we have also analysed a
  series of other economic activities supplying
  products and services to casino visitors.

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• TSA FOR GAMING INDUSTRY IN SLOVENIA - AGREGATES

• Gaming consumption
• includes all the expenses paid by visitors for
  gaming services, including entrance tickets to
  casinos and tips.
• Gaming tourism consumption
• includes all the expenses paid by visitors for
  gaming services and other services offered by
  gaming companies in Slovenia (in addition to
  gaming services also expenses for accommodation,
  food and beverage, travel agencies and tour
  operators owned by Slovenian gaming companies).
• Internal gaming tourism consumption
• comprises all expenses paid by (or commissioned
  by) gaming visitors during their travel and stay
  outside their place of residence or their usual
  environment (with reference to trips). Internal
  gaming tourism consumption is the total spending
  in the country by domestic gaming visitors and
  foreign gaming visitors in the same country.
• Gaming value added
• is the value generated by gaming and other
  activities in the economy and the result of
  gaming tourism consumption.
• Gaming gross domestic product
• is the sum of value added (at basic prices),
  generated by gaming and other activities as the
  result of gaming tourism consumption and net
  taxes on products and import duties included in
  the price.

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• TSA FOR GAMING INDUSTRY IN SLOVENIA CONSUPTION
  (mio EUR)

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• TSA FOR GAMING INDUSTRY IN SLOVENIA AGREGATES

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• TSA FOR GAMING INDUSTRY IN SLOVENIA TAXES

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• TSA FOR GAMING INDUSTRY IN SLOVENIA MULTIPLIER
  12

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• TSA FOR GAMING INDUSTRY IN SLOVENIA MULTIPLIER
  3

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• TSA FOR GAMING INDUSTRY IN SLOVENIA SECTORAL
  COMPARISON

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• CONCLUSIONS

• Application of TSA methodology to the gaming
  industry is a considerable improvement to the
  collection and evaluation of tourist consumption
  and production within national TSAs.
• The results have confirmed that the gaming
  industry is extremely important to the Slovenian
  tourism industry in particular and to the
  national economy
• The value-added multiplier of the gaming industry
  is 2.1. The importance of gaming, offering a
  comprehensive tourism product in addition to mere
  gambling, including accommodation, cuisine,
  wellness services, convention programmes and
  entertainment centres, while encompassing the
  wider offerings of the local environment, is
  growing exponentially.
• By comparison to the economic activities selected
  among the most efficient businesses in Slovenia,
  the gaming industry holds the top position in
  terms of value added by production, as well as in
  terms of productivity, its share in exports
  (consumption by foreign visitors) and payment of
  taxes.
• It should be pointed out that 85 of the gaming
  value added and taxes paid stem from the
  consumption by foreign visitors.
• Slovenia has few strategic advantages that can be
  successfully exploited. One of them is certainly
  the tourism industry, which includes gaming.

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