The Study of Impacts and Cognition for the Attitude and Intentions Towards the Penghu Casino Industry Development

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The Study of Impacts and Cognition for the Attitude and Intentions Towards the Penghu Casino Industry Development African Journal of Business Management Vol.4 (1), pp. 111-119, January, 2010 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 © 2010 Academic Journals Full length Research Paper The study of impacts and cognition for the attitude and intentions towards the Penghu casino industry development Chih-Yung Tsai and Yih-Chearing Shiue* Department of Business Administration National Central University, No.300, Jhongda Rd., Jhongli City, Taoyuan County 32001, Taiwan. R.O.C. Accepted 17 December, 2009 The topic of opening offshore tourist casinos has been controversial throughout Taiwan. Supporters usually use Las Vegas in the U.S. as an example, demonstrating that Las Vegas, by opening tourist casinos, has brought prosperity and money to a deserted location like Nevada. Taiwan has wanted to open tourist casinos for some time, especially in the Penghu offshore island area, to rid themselves of the low level of prosperity typical of offshore islands. This study discusses what impacts the casino industry may bring and the attitudes of local residents towards the casino industry, as well as their intentions to develop the casino industry. The results of this study show that the impacts of tourism do indeed affect the residents’ attitudes towards the casino industry. These attitudes also affect future casino development intentions. As a result, this study suggests that decision makers can develop the casino industry with certain plans and restrictions to reduce environmental damage and attempt to elevate the employment rate and income. These preventative measures should increase the intentions of the residents to support casino industry development. Key words: Casino industry, Las Vegas, tourism. INTRODUCTION The Taiwanese government began operating a compu- showing that although Las Vegas is located in the empty terized lottery on January 16th, 2002. The general public Nevada desert, it still generates large amounts of money, enthusiastically supported this lottery. However, the improves public facilities and increases residents’ income following day, January 17th, 2002, the Legislative Yuan and government tax revenue. This is turn fosters failed to pass offshore island development act amend- investment, increases local industrial development and ments following three readings due to the expected and supports a booming local economy through the operation highly controversial casino regulations in this act. On of casinos. Detractors believe that the legalization of January 12th, 2009, the Legislative Yuan passed new casinos will create additional social problems, casino regulations and lowered the minimum required environmental chaos and traffic jams, while damaging number of votes for a referendum to build casinos on local resources, elevating retail prices and producing offshore islands. Proposed at different times, these two more costs on society. To satisfy the increasing needs of similar public policies produced completely different tourists, the government and industry alike must explore results. the environment and take in additional resources. This For years, people in Taiwan have felt that the opening has caused the environment and resources to suffer from of offshore tourist casinos is a highly controversial topic the largest impact and crises (Sung, 2001) to date, and Supporters usually use Las Vegas as an example, destroyed the local ecological environment (Yang and Lin, 2009). Penghu is one of Taiwan’s offshore islands with a complete infrastructure and industry base. However, *Corresponding author. E-mail: [email protected]. because of the current recession, the local government is Tel: +886-3-422-7151 ext 66526. suffering from a financial set-back. The Penghu County 112 Afr. J. Bus. Manage. government is planning to rid Penghu of the low level of from the local residents’ point of view. What are the prosperity typical of offshore islands by opening offshore attitudes and intentions of local residents towards casino island tourist casino to foster economic growth and local development, and what benefits and impacts will it create prosperity. However, government and industry have for the tourism industry? Although the Penghu casino already widely explored the environment, using natural referendum did not pass, the Mioali County magistrate in resources to satisfy the increasing needs of tourists. As a Taiwan, Leo Zhen Hong, showed his intention to fight for result, the environment and natural resources of Penghu a designated casino area. In other words, the have suffered their largest crises to date (Sung, 2001). At government and related organizations still have many first glance, tourism may be the best solution for expectations of the casino industry. We hope the results economic development, but it involves both pros and of this study can provide future decision makers with a cons for the social environment (Andereck, 2000; Ko and reference for planning the casino industry. Stewart, 2002; Wang et al., 2008). On September 26th, 2009, Penghu Island held a county referendum on Penghu Casino Regulation, but the LITERATURE REVIEW Regulation did not pass. Does this result indicate that Proper nouns Penghu residents believe that the casino industry brings more cons than pros? Leonard (2008) indicated that the Casino impact of tourism and the perceptions of the residents greatly affect future tourism development. Therefore, one Wu (2002) believed that the term “tourist casino” is more of the main goals of this study is to understand the tourist appropriate than “casino” because casinos include both impacts and resident reactions generated by the casino gambling and entertainment facilities. They provide industry in Penghu. casino and tourism activities, especially since the Roehl (1999) indicated that the local residents’ percep- operating concept for today’s casinos is not limited to tion of casinos directly affects actual casino development. indoor locations. Even a luxurious cruise ship can be a In other words, residents’ perceptions of a casino affect floating casino. However, this study uses the term casino its development and the quality of life of local residents. to refer to the previous types of casinos. When a casino generates more economic benefits than societal costs, residents will have a greater desire to support casino development. Lee (2001) believed that the Tourism impact intentions and perspective of residents have a great Wang et al. (2008) indicated that in tourist areas, the influence on future tourism. Huang et al. (2006), using the environment will experience a certain amount of change, Chigu Wetlands to research the local perspectives on either scientifically or socially. Therefore, tourism impact ecological tours, found that residents familiar with the involves the tourism activities that cause societal or Chigu Wetlands had higher intentions to develop environmental changes. Lee (1996) showed that tourism ecological tours. Thus, the second motivation of this activities can stimulate investment or increase job study is to discover whether or not the impacts of casino opportunities but also produce local, environmental, or development, and local perceptions of casinos, directly societal impacts due to development and large numbers affect Penghu residents’ intentions regarding the casino of tourists. Therefore, the possible influences of tourism industry. should be considered and discussed when developing Related literature on casino development covers tourism. research topics such as casino industry policy (Hsieh, 2003), casino management systems (Chu, 2002; Ho, 2005), casino operation modes (Chung, 2005; Gonzales Developing attitude et al., 2007) and the impacts of casinos on the economy (Long, 1996; Honga and Jangb, 2004; Kao, 2006; Huang, Attitude means a long-lasting behavioral inclination 2007). Other studies examine the general public’s attitude towards a person, incident, item, or the world in general towards casinos (Grant et al., 2000; Israeli and Mehrez, based on cognitions and favors (Chang, 1992). This also 2000; Kang et al., 2004) and social behavior issues in means the behavior inclinations of abstract concepts casinos (Carmichael, 2000; Lin, 2005; Chan, 2008). towards things or people. Attitude is an important field of However, researchers seldom analyze casino develop- study in Social Psychology. Hay (1993) discovered that ment from the perspective of local residents. Although people’s attitudes towards incidents could be divided into there are analyses about residents’ attitudes towards positive attitudes, acknowledging future potential and improving quality of life. casino development (Chang, 2001), there is still a lack of full discussion regarding the impact of casinos on tourists, especially when people’s historical opinions about casinos Intention may be different from now. Based on the background and motivations mentioned above, this study evaluates the Intention is carried out depending on predictable, planned impacts of Penghu’s casino development from the local and desirable inclinations towards future behaviors. Tsai and Shiue 113 When appropriately measured, intention is the best prediction for personal future behavior (Fishbein and Ajzen, 1975). Morwitz and Schmittlein (1992) believed that intention could be used to predict actual behavior. Related documents of tourism impact and developing attitude Lin et al. (2007) believed that the overall profit of sports tourism has more pros than cons. In this case, residents usually have a higher supportive
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