Abstract
Today, the casino industry generates various economic effects and is being developed as the major tourism solution that can overcome the limitations of the tourist industry. With the economic benefits from the growth of casino industry in the world economy, we are to implement the policies to facilitate the growth of the industry, therefore, the scale of the international casino industry is on the rise, but the competitiveness on the national level is getting intensified. In order to survive in casino industry, it is necessary to make efforts to establish an economically sustainable casino company. To this end, in-depth study of the financial value of the casino industry for its customers is required and these efforts are important to enhance the competitiveness of the casino industry. In this study, we have made a meaningful approach to apply the customer’s life value to the casino industry. CLV means the financial value obtained by converting the profit to be obtained for a certain period of time from the customers into the present value based on the discount rate. Thus, the purpose of this study was to develop a model and indicators that can be objectively evaluated by finding the life value factor of a customer suitable for the casino industry. As a result, we formed the five components of customers’ lifetime value assessment model, thereby laying the foundation for management of the customers’ specific strategies and customers’ care. Based on the results of the study, the foundation for the competitive advantage in the casino industry could be established as we could contribute to ensure the substantiality of the competitiveness in casino industry.
Highlights
According to the announcement of the UNWTO (United Nations World Tourism Organization) [1] in 2017, tourism is the fastest growing industry in the world economy over the last 60 years, producing 10% of the world’s GDP, creating one out of 10 jobs, and accounting for 7% of global exports
This study aims to develop the indicators for assessing the lifetime value of a casino customer for sustainable and growth of the casino industry
The casino industry in the tourism area is deemed a relatively higher value-added business and is dubbed as the “golden and no-smoking industry”, showing its potential to be a substitute for regular tourism products with strong resistance to climate environment
Summary
According to the announcement of the UNWTO (United Nations World Tourism Organization) [1] in 2017, tourism is the fastest growing industry in the world economy over the last 60 years, producing 10% of the world’s GDP, creating one out of 10 jobs, and accounting for 7% of global exports. The casino industry is cultivated and developed as a core industry of tourism with the goal of gaining foreign currency and various economic effects such as securing revenue for local governments, activation of local economies, creating income and jobs for local residents, redeveloping cities, diversifying leisure activities, and attracting foreign tourists [2]. Asian countries including Korea are striving to grow casino industries with the aim of economic benefits, such as attracting foreign currency through overseas capital investments. It is seen that there is a move towards activating the casino industry in Asian nations, and Thailand, Japan, Vietnam, and the Philippines, especially, are expanding their existing casino businesses further, and Singapore is tapping into the casino industry [3]
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