Proposed entertainment complexes draw positive and negative views

Of all the flagship policies of the new administration, the establishment of entertainment complexes is drawing the most flak for its potential to cause significant social issues.

The draft law on such complexes, which if enacted, would likely draw at least 100 billion baht of investment funding to Thailand, aims to stimulate tourism along with generating revenue from underground business taxation.

Despite the criticism, Deputy Finance Minister Julapun Amornvivat told Nation Group’s media arm Thansettakij on Friday that the public hearings held from August 2 to 18 showed that quite a lot of people have a positive view towards the draft bill.

“We are ready to improve the draft bill as per comments before submitting it to the Cabinet, Council of State and House of Representatives for consideration,” he said.

He expects the draft bill to be launched next year as the consideration would take some time. “We are ready to accept House of Representatives and Senate comments for improvement to prevent impacts on Thais,” he said.

“We do not know how many entertainment complexes will draw investment nor who will operate them, because the House committee and Finance Ministry does not have the right to decide who or which provinces are capable of setting up such a venue,” he said, adding that these processes should be transparent.

A source from the Finance Ministry believes that the draft bill for entertainment complexes would draw at least 100 billion baht in investments to Thailand. However, the government should put in place clear regulations to ensure that people will not become addicted to trying their luck at the casinos, a source said.

The draft bill stipulates that each entertainment complex will consist of at least four entertainment businesses plus a casino.

Entertainment complexes should be located in specified areas and are operated by companies registered in Thailand with paid-up capital of at least 10 billion baht.

“It’s up to the new government whether these details will be revised or not,” a source said, adding that those who want to use entertainment complex services must be 20 years old and above.

Thai nationals must register for a licence to screen their eligibility, adding that the licence fee for the first year is 5,000 baht and 1,000 baht per year for licence renewal.

Impact on Thailand’s image

Thaniwan Kulmongkol, president of the Thai Restaurant Association, said she disagreed with the draft bill, explaining that she believes entertainment complexes could negatively affect the country, especially gambling which impacts families and the economy.

She pointed out that the draft bill would trigger social inequality, saying that small group entertainment complex operators would gain benefits while leading large groups of people to become serial gamblers, thus increasing their debt burden and potentially leading to crime.

Thaniwan noted that Thailand suffers from a lack of strict law enforcement, adding that the draft bill could well affect the possibility of attracting quality tourists as foreigners would see Thailand as a country that promotes gambling

“As a citizen and entrepreneur in the food business, I am concerned over possible impacts, such as gambling and prostitution, which could affect the image of Thailand and its communities,” she said.

Preventing social issues

Sanga Ruangwattanakul, president of the Khao San Road Business Association, expects entertainment complexes to stimulate economy and tourism, but warned that clear and strict laws must not just be in place but also enforced.

He said the government should be able to counter the public’s doubts that legalising underground tax will benefit the country and not involve corruption.

“Entertainment complexes should be located in secondary cities rather than tourism cities like Bangkok or Phuket, as the policy focuses on stimulating tourism,” he said.

“These venues should be located in non-landmark cities to boost prosperity for the country.”

Sanga stressed that laws for supervising entertainment complexes should be clear on whether Thai people can enter or not. “South Koreans are not allowed to enter entertainment complexes to prevent social issues and crimes,” he pointed out.

He advised the government to consider the draft bill and comments from relevant sectors thoroughly, warning that casino legalisation elsewhere has triggered a conflict between economic benefits and social impacts.