Working group hears UNLV professor: 'fun economy' now a major global industry, with implications for Hawaii tourism

Beau, a professor with long experience studying tourism and gaming, told the tourism and gaming working group on Feb. 19 that the global "fun economy"—tourism, sports and entertainment—has grown to become a major economic force and that Hawaii must weigh cultural and local impacts when considering gaming or other new attractions. The presentation took place at Conference Room 430 of the State Capitol; the committee did not take votes.

Beau said tourism accounted for about 10% of global spending and that, when sports and entertainment are added, the combined "fun economy" reaches about 14% of global spending. "For the first time in the history of planet Earth, 10% of all the money spent on all the Earth was spent by a tourist," he said, adding that the 14% figure is likely a floor rather than a ceiling. He cited Singapore and Las Vegas as case studies where gaming and large-scale entertainment shaped visitor patterns and GDP.

The professor emphasized that outcomes differ by jurisdiction and urged the committee to rely on localized, pre‑ and post‑implementation studies rather than one-size-fits-all assumptions. He said some places that added resorts and gaming saw measurable increases in GDP and inbound visitors, while other impacts depend on whether facilities attract new visitors or cannibalize existing local spending. "It depends on the kind of gambling that's been legalized," he said, describing how tourism‑oriented gaming tends to create the largest visitor impacts in case studies he has examined.

Committee members pressed on several practical issues. One member asked how to account for culture and land‑use constraints in place like Hawaii; Beau recommended consultations with indigenous and local stakeholders and pointed to international examples where cultural concerns were integrated into planning. Members also asked whether gambling produces happiness; Beau said the broader literature finds that spending on experiences tends to raise wellbeing but that there is not yet firm, direct evidence isolating gambling's specific contribution to happiness.

Beau offered to provide the committee with jurisdictional reports and data used in his studies, including analyses linking new resort development to GDP changes. He also noted substitution effects—where casino spending displaces other local spending—can be measured but depend on whether a project draws new visitors.

The meeting transitioned to a responsible‑gaming presentation after Beau's remarks. No formal motions or votes were recorded during the session. The committee asked presenters to share follow-up reports and data by email to help members evaluate potential economic benefits and cultural trade-offs associated with gaming and related entertainment investments.

Next steps: Beau said he would provide jurisdiction‑specific reports and additional data to the committee for members' review.