IAG April 2015 - page 7

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asiangaming
April2015
7
In Focus
Macau’s number two and three visitor sources. Until direct flights
between Taiwan andmainland China resumed in 2008, Macau (like
HongKong)hadanicheasastopover for cross-strait travelers. Since
then, Macau’s arrivals from Taiwan have fallen by 490,000 or 34%.
Macau’s arrivals fromHong Kong have decreased 1.8 million from
their 2007peak.
As Macau’s tourism and gaming capacity grew, focusing on
mainlandChinamade sense. China is right next door, has 1.3 billion
people, no legal casinos, and for two decades has been the world’s
fastest-growing major economy. By percentages and sheer scale,
China’s economic expansion has been much greater than other
regional economies, The Platinum Ltd Managing Director Mary
Mendozanotes,making theChinesemarketby far themost tempting
target forMacauoperators.
Moreover, Macau has strong cultural and social ties to the
mainland.AbouthalfofMacau’spopulationwasborn inthemainland,
and local community leadership turned towardChinaduring thecity’s
final, indifferent decades of Portugal’s colonial administration. “I’m
surprised they’ve done as well as they have” attracting visitors from
beyond themainland, SpectrumAsia chief executive Paul Bromberg
says. “They’re completely focusedonChina.”
BIGSPENDERS
TargetingChina,Macau’sgamingrevenueballooned to$45.1billion in
2013, nearlyseven times thefigure for theLasVegasStrip. Inaddition
to providing proportionately greater gaming revenue than their
arrival numbers, mainland visitors are also the biggest non-gaming
spenders, although thegapnarrowed last year.Mainlandvisitors’ per
capita non-gaming expenditures declined 8.2% toMOP2,354 ($294)
in 2014, ahead of visitors from Singapore at MOP1,904 and Japan
at MOP1,846. Despite the decline, mainland visitors accounted
for 70% of total visitor non-gaming spending. Mainlanders have
fueledMacau’s shopping boom; evenwith last year’s pullback, their
MOP1,078 per capita shopping spending doubled that of any other
THERISEANDFALLOFNON-CHINESETOURISTSTOMACAU
|ArrivalsbySourceMarket From2003 to2014
Year Total Visitors MainlandChina MainlandChina
HongKong
Taiwan
Greater China
Non-Greater
Non-Greater China
Visitors
Visitors%of Total
Visitors
Visitors
Visitors%of Total
ChinaVisitors
Visitors%of Total
2003 11,887,876
5,742,036
48.3%
4,623,162
1,022,830
95.8%
499,848
4.2%
2004 16,672,556
9,529,739
57.2%
5,051,059
1,286,949
95.2%
804,809
4.8%
2005 18,711,187
10,855,496
58.0%
5,614,892
1,482,483
95.9%
758,316
4.1%
2006 21,998,122
11,985,617
54.5%
6,940,656
1,437,824
92.6%
1,634,025
7.4%
2007 26,992,995
14,866,391
55.1%
8,174,064
1,444,082
90.7%
2,508,458
9.3%
2008 22,993,185
11,613,171
50.5%
7,016,479
1,315,865
86.7%
3,047,670
13.3%
2009 21,752,751
10,989,533
50.5%
6,727,822
1,292,551
87.4%
2,742,845
12.6%
2010 24,965,411
13,229,058
53.0%
7,466,139
1,292,734
88.1%
2,977,480
11.9%
2011 28,002,279
16,162,747
57.7%
7,582,923
1,215,162
89.1%
3,041,447
10.9%
2012 28,082,292
16,902,499
60.2%
7,081,153
1,072,052
89.2%
3,026,588
10.8%
2013 29,324,822
18,632,207
63.5%
6,766,044
1,001,189
90.0%
2,925,382
10.0%
2014 31,525,632
21,252,410
67.4%
6,426,608
953,753
90.8%
2,892,861
9.2%
Source:
MacauStatisticsandCensusService
Economicdiversificationhasprovenelusive
inviewofMacau’sgaming-centric tourist
mix; customerswantwhat theywant.
Anotherpotential areaofdiversification,
greatervariety inMacau’svisitorpool, has
been largelyunexplored, anoutcomeof
what’sbeen soundfinancial judgment, if
poorriskmanagement.
group.Collectively,mainlandvisitorsaccounted for 33.8%ofMacau’s
total retail spending last year.
“They’vebeensosuccessfulwiththeChinesemarketthattheyhaven’t
thought of expanding their horizons,” a regional gaming executivewith
extensiveMacauexperiencewho requestedanonymitysays.
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