Inside Asian Gaming

inside asian gaming January 2016 14 realised in the Asian region is that business is also booming in New York with new houses and office towers sprouting like weeds – but where’s the conversation around the causes of casinos closing in the northeast corner of the US? In 2015 four Atlantic City casinos closed and a fifth may follow. The city at one time had a monopoly on the east coast of the United States. The bleeding just won’t stop – shops and restaurants are also closing. The question is now whether the entire city can avoid becoming a bargain basement. Some sources claim that more than 7,500 jobs have been lost already, which means abandoned Cover Story businesses and more houses for sale. Just under a decade ago annual gaming revenue in Atlantic City was over US$5 billion. That revenue is now being spread over 30 casinos in three states – the result being that Atlantic City gaming revenue is now under US$3 billion annually. Next to take a hit may be city government employees, with perhaps another 500 jobs set for the chopping block, right in the midst of winter when business is traditionally slow. This is especially concerning given that social security benefits for laid off workers in that part of the world have only a limited timeframe. Whilst Macau has no major closures in sight the city could still benefit from the lessons Atlantic City is relearning since its gaming sector is now only half of what it was. It is time for Macau to make meaningful moves on its diversification strategy. Macau could begin to consider ideas such as becoming a medical or educational hub – particularly now that the University of Macau has relocated to its much larger campus on Hengqin Island. Research and technology centers or venture incubators could also prove most effective in a diversification strategy. Other initiatives could include creating space for entrepreneurs or venture capitalists. Professional services companies and knowledge workers could easily service Hong Kong, Shenzhen and Guangzhou, especially with Macau’s advantage of proximity to Zhuhai and other major cities in Southern China. LEVERAGING A MACAU-WIDE HALO SERVICE CULTURE The advantages of these diversification strategies are obvious. The unique culture that Macau enjoys by having a rich western European heritage blended with a dynamic Chinese culture affords a mega culture that has less tension than Hong Kong, its sister city across the water. All of these service industries lend themselves to a Halo Service culture. Macau has a professional service orientation – what a loss if we don’t develop and advance that culture to the next level. By 2020 Macau should create a Halo Service culture, setting a new standard of service that is unparalleled in the world. The attitude should be, “The Macau SAR is completely five star.” Dr To is an alumnus and Senior Fellow of the Wharton School at the University of Pennsylvania and a Senior Professor at several distinguished universities “While these transformational changes bode very well for the region, where is this paradigm of generational change in Macau’s service culture and service delivery? This is the key to driving revenues north since the downturn of the last 18 months but so much work remains to be done.”