Inside Asian Gaming

INSIDE ASIAN GAMING JUNE 2018 34 [Bernhard] credits IRs with creating what he calls “the world’s most expensive real estate” – a table at a nightclub that costs US$10,000 for four hours – and then parlaying that concept into day clubs that extend opportunities to reap comparable revenue. FEATURE IN FOCUS often are positive effects, as tourists seek to get off property and enjoy other amenities.” In Singapore, the home of Las Vegas Sands’ much envied Marina Bay Sands and Genting Group’s much imitated Resorts World Sentosa, there’s been a restaurant boom that observers attribute to the IRs bringing celebrity chefs and true top-end dining to town. That’s one example of how IRs reach beyond their walls to enhance the overall tourism proposition for a destination. CATEGORY BREEDER IRs themselves are crucibles of innovation, with a mix of amenities and room to experiment. Contrary to popular belief, not everyone can Las Vegas raked in an estimated US$10.3 billion in non-gaming revenue in 2017 succeed running a casino and that’s even more true of integrated resorts, according to Bernhard. In order to survive in a competitive environment that ultimately depends on consumer taste – IRs must solve the title thesis of Clayton Christensen’s The Innovator’s Dilemma : the bigger you get, the stronger your status quo bias. The book uses Apple under Steve Jobs as an example of overcoming the dilemma through an ability to “create new categories.” Bernhard sees that process playing out in the breadth of categories IRs span and the innovations within them. For example, he credits IRs with creating what he calls “the world’s most expensive real estate” – a table at a nightclub that costs US$10,000 for four hours – and then parlaying that concept into day clubs that extend opportunities to reap comparable revenue. Looking at other surprising IR impacts, Bernhard debunks the idea that IRs don’t create good jobs. IR employment almost always involves customer interaction, whether directly or indirectly. Delivering services to consumers successfully builds social intelligence, a trait that’s a better predictor of business success than IQ, studies show. GOOD EXPERIENCES Bernhard also disagrees with the notion that IRs don’t produce social good, a view frequently rooted in the moral judgment that gambling is bad. Judgments aside, his keynote proposes taking a larger view of the IR as a place that produces a wide variety of experiences for visitors. Studies show that experiences tend to have greater positive impact on people than acquiring things. For IRs, their range of experiences works its greatest magic when it comes to tourism. Bernhard cites an “agglomeration effect” that IRs promote by adding new options for travelers. “Many tourists don’t make travel location decisions seeking