Inside Asian Gaming

JUNE 2018 INSIDE ASIAN GAMING 35 “Macau IRs are as healthy in some non-gaming sectors as their counterparts in Las Vegas, for example in retail, as some of the highest-grossing retail shops exist inMacau. Often this is less visible, however, as the store itself may be empty, but the sales are taking place upstairs in a high roller’s room.” – Bo Bernhard IN FOCUS one single destination or amenity, but instead for an agglomeration of destinations or amenities – sometimes under one roof, as at the IR,” he says. The range of amenities and attractions in Macau’s portfolio of IRs generates impressive amounts of non-gaming spending. “A large Macau property generates the same amount of non- gaming revenue as Las Vegas IRs,” Bernhard, who teaches hospitality and sociology at UNLV, says. “But it doesn’t get noticed because gaming revenue is so much bigger.” Overall, on the Las Vegas Strip last year, gaming revenue totaled US$6.5 billion with non-gaming revenue estimated at US$10.3 billion. Macau authorities reported gaming revenue equivalent to US$33.2 billion and tourist non-gaming spending of US$7.7 billion, up 16% from 2016. Bernhard contends the Macau non-gaming growth story remains underappreciated due to the “obsession” with achieving the Las Vegas Strip ratio of roughly one-third gaming revenue and two- thirds non-gaming revenue. “We are actually seeing evidence that the ‘Las Vegasization’ of Macau’s casinos is already happening,” Bernhard says. “This means that Macau IRs are as healthy in some non-gaming sectors as their counterparts in Las Vegas, for example in retail, as some of the highest-grossing retail shops exist in Macau. Often this is less visible, however, as the store itself may be empty, but the sales are taking place upstairs in a high roller’s room.” The trend that Macau and Beijing authorities favor, of greater non-gaming spending by tourism and leisure visitors – overnight visitors grew 18% last year – is gaining momentum. “The diversification that Beijing and the Macau government have sought is happening,” Bernhard observes. “Be careful if you think of messing with it.” Macau is home to some of the world’s highest-grossing retail stores