Determining Revenue-Generating Casino Visitors Using a Vector Autoregressive Model: The Case of the G Casino in Korea

Abstract

This study used a time-series data analysis to investigate the characteristics of casino visitors that affect casinos' revenue generation. Exchange rates-a traditional measure relevant to tourism-and customer types and nationalities were empirically analyzed with a vector autoregressive model using data acquired from all branches of Korea's G casino. The results suggest that the casinos' revenues were affected by the customers' type and nationality: VIP customers were very important factors in the casinos' revenue generation; moreover, the revenue impact of Russian visitors was quite strong despite their small numbers.