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Political Impacts Of Integrated Resorts Tourism Essay

Paper Type: Free Essay Subject: Tourism
Wordcount: 2053 words Published: 1st Jan 2015

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South Africas gaming industrys gross gambling revenue in financial year 2011/2012 grew by 7.5 to R18.4 billion. In fiscal year 2011/2012 South Africas 37 casinos paid nearly R4.7 billion to government revenue through 36 percent gross casino tax. R10.1 billion was invested in casinos between 1997 to 2000, representing 2.1% of the total South African capital formation. Also, social and responsible gambling programs were funded with more than R80 million (CASA 2012). Presently, there are 830 table games and 22,688 slot machines in all over South Africa’s casinos. Casino industry has generated almost 100,000 direct and indirect new jobs, also adding 7,000 hotel rooms and two international convention centers (CASA 2012).

Montecasino is located in Fourways, North of Johannesburg is known for being Gauteng’s number one entertainment destination. It was first opened on 30 November 2000. Montecasino entertainment complex offers a world class gaming, leisure, entertainment and shopping experience. Montecasino entertainment complex encompasses 3 hotels, The Palazzo Montecasino offering 246 rooms, Southern Sun Montecasino offering 194 rooms & SunSquare Montecasino with 179 rooms. . It was designed and built by South African architect company, Bentel Associates International, at a cost of R1.6 billion rand. It currently attracts over 9.3 million visitors annually. Montecasino has a non-smoking and two smoking casinos, with more than 1700 slot machines and 70 gaming tables, from American Roulette, Craps, Baccarat, Poker and Blackjack to novelty games like Wheel of Fortune and Life of Luxury and progressive slots jackpots. Montecasino is also the largest of Gauteng’s five casinos, covering 38 hectares of prime real estate in the northern suburbs of Johannesburg.

Theme: Monumental Theme

Design: Ancient Tuscan Village (Italian design)

The main building with the casino has a fake sky, painted on the roof, inside going from light to dark from one side to the other.

Political impacts of integrated resorts

Before the introduction of the National Gambling Act in that year, South Africa had a flourishing illegal gambling industry which was almost entirely controlled by whites, offered players no protection against fraud, was readily available to minors and totally ignored problems associated with compulsive and problem gambling. A decade later, illegal machines are down from approximately 150 000 to less than 10 000, while the number of legal machines has increased from the approximately 7 000 which existed in the pre-1996 old “homeland” casinos in 1994 to 22 000 in 2010, a figure which is still well below these which existed illegally.

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Today, there are 37 legal casinos in all nine of South Africa’s provinces, bringing numerous benefits to the locations and communities where they operate. The provisions of the National Gambling Act, along with the regulations made in terms of it, have provided South Africa with a regulatory framework which is universally regarded as the most stringent and scrupulous gambling regime in the world.

Social impacts of integrated resorts

The social impact of gambling can range from productivity loss, bankruptcy, crime, suicide, illness, abuse, divorce and separation, social services and treatment costs. The social impact of gambling is not confined to the problem gambler. It most certainly affects others such as spouses, children, extended family members or close friends.

The history of gambling is that of a stigmatized behavior that has passed through numerous cycles of guarded acceptance and prohibition. The recent spread of gambling in South Africa has been characterized by attempts to neutralize the stigma associated with this behavior. Nevertheless, there are very real personal and social problems associated with gambling (COSATU 2012).

Problem gambling. Pathological gambling is a progressive disease that devastates not only the gambler but everyone with whom he or she has a significant relationship. Studies on the impact of gambling found a strong correlation between greater availability of gambling and pathological gambling. Some of the consequences of problem gambling – even if not at a pathological stage – at the personal level can include an increased level of depression and anxiety, impaired judgment, reduced tolerance with other people, and loss of self-respect. Negative effects on work and study can include poor performance, high absenteeism, lower productivity, and unemployment or difficulty in maintaining employment.

Crime. There is positive correlation between crime and gambling. Gambling addicts resort to criminal activities in order to finance their habit. Theft, robbery and fraud are some of the things that problem gamblers sometimes engage in. Gambling is also a haven for organized criminal syndicates. Gambling operators usually refuse to acknowledge this for fear of losing wealthy clients (COSATU 2012).

The South African casino industry is also extensively involved in social investment programs which benefit local communities, particularly the disadvantaged, and in 2010 contributed more than R107 million to this purpose. Such community upliftment programs range from the establishment of trusts to support various local NGO initiatives to the upgrading of infrastructure in less developed areas and regular donations towards charitable and welfare organizations, as well as beneficiaries in the environment, arts, sports, culture and other deserving causes (CASASA 2012).

Economic impacts of integrated resorts

The contribution of the Casino gaming sector to the GDP in South Africa in general, and to the Gauteng province, has been exponential over the years. For example, in the last five years, the gambling Casino industry in South Africa had a total turnover of over R62 billion, with R5.6 billion paid in Casino gaming tax. The total Gross Gaming Revenue increased from R8.2 billion in 2005 to R14 billion in 2009.The increase in revenue was also due in part to more Casinos being licensed throughout South Africa. However, the Gross Gaming Revenue appears to have stabilized, having reached over R15 billion in 2008 and declining by R1 billion in 2009 (Gauteng Gambling Board 2010). During the 2009 financial year, South Africa’s casinos generated quarterly revenue of approximately fifty billion rand, with a full year aggregated figure of two hundred and twelve billion rand (The South African National Gambling Board, 2009).

In terms of the Casino gaming tax, the tax paid increased from R763.7 million in 2005 and the payment for the most being in 2008, but did not decline to R1 billion in 2009. Apart from 2006, the average number of jobs in the Gauteng Casino industry has been at around 11,000.

The industry has also contributed to job creation in the country for example, the employment multiplier of 5.6 would imply that for every one job created directly by the gambling sector, a further 4.6 jobs are created through indirect and indirect effects. The above suggests that the initial employment of 11,093 in 2009 resulted in the total employment of 51 028 through the indirect and induced employment effect of the gambling sector. The total Gross Added Value Added (GVA) of the gambling sector (direct, indirect and induced) is R7.1 billion in Gauteng. (Gauteng Gambling Board 2010).

Technology impacts of integrated resorts

Angel Eye

Designed to put the brakes on a rampant card-switching problem in Asian countries, Angel Eye relies on bar codes placed on each card with invisible ink. As the baccarat dealer deals cards, a sensor in the dealing shoe keeps track of the cards being dealt and transfers the information to a computer. After the cards on the table are revealed, the dealer presses a button on the shoe, and the results of the hand judged by the computer are displayed. Security starts flexing its muscles if the results on the table don’t match the computers.

TableEye21

TableEye21 combines several technologies into a single impressive service: an overhead video camera keeps track of the action, and by using a mixture of video analysis software and information from RFID chips, it’s able to overlay the video feed with real-time information of the cards being dealt and the chips being wagered. In the meantime, TableEye21′s robust software methodically tracks all kinds of stats for the table, including dealer rounds per hour, trend reports, and player win percentage. Casinos use that information to help identify when a player is counting cards or working in cahoots with the dealer to screw the casino out of money.

Promotion event

Montecasino hosted South Africa Tennis Open for the second time in 2010. It was held for the first time in 2009 at Montecasino, with the venue proving to be catalyst in the restaging of the tournament after 14 years. The R3.5-million event ran from 1 to7 February 2010, with the qualifying tournament taking place on January 30 and 31. The SA Tennis Open is a 250 series event on the ATP World Tour, which means that the winner took away 250 South African Airways world ranking points. South Africa Tennis Association Chief Executive Ian Smith said that the players loved the venue last year, which helped to attract a strong field yet again. The response from the public was overwhelming, with the semifinal and final days (Saturday 6 and Sunday 7 February) being sold out a week before the event.

Celine Dion live show at Montecasino: Thousands of South African fans had flocked to see international Superstar Celine Dion performing live under African skies at Montecasino, Johannesburg on 01 March 2008. The concert was staged adjacent to the spectacular new outdoor piazza in Montecasino, giving the audience the opportunity to experience the magic of Celine Dion in a Tuscan village under African skies.

Streams of revenue

Sources of revenue of Montecasino are: three hotels with a total of 619 rooms; conferencing and meeting facilities that comprise 16 venues totaling 2000 square meters of floor space; the 1 850-seat Teatro; and three restaurants – Billy G’s, a 700-seater buffet restaurant, Cobblestones Pub, a 150 seater pub-style restaurant, and @Monte Restaurant & Wine Bar, an upmarket 120-seat venue. Montecasino’s 95 percent of the R1 billion-plus revenue comes from casino.

Montecasino in 2012 is moving away from the silo approach where the different divisions such as conference venues, hotels, theatres, gaming, entertainment, and restaurants were responsible for their own turnovers and it’s now finding ways to combine offerings for visitors to ensure maximum value and enjoyment for them and improved usage and profitability for Montecasino. Montecasino is focusing on the package offerings they can offer to corporates, associations, clubs, families, or any group. Positive aspect of this realignment exercise are the logistical opportunities to leverage across the extensive company-owned and privately-owned facilities at Montecasino. Montecasino is moving away from the strategy – which saw its various divisions such as gaming, hotels, restaurants and theatres responsible for their own turnovers – towards improved profitability and usage from all its divisions.

Spas

Lanna Spa ( Thai massage)

This Lifestyle spa is stylish and elegant and provides the perfect escape for indulgence and pampering. The name Lanna literally means “land of a million rice fields” and is a temple for the body, mind and soul. Lanna Spa offers a full range of unique treatment services including Clarins Beauty treatments for him and her, Thai Herbal and Oil Massage, Lanna Body Wraps, Manicures and Pedicures, a full range of waxing or simply create your own special package to suit your needs. The décor is simple, yet elegant with a strong Thai influence. There are 9 treatment rooms including a couples room, a relaxation room, a boardroom to meet with clients and indulge them with a pamper session thereafter and a 12 seater Jacuzzi.

 

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