Inside Asian Gaming

inside asian gaming FEBRUARY 2016 10 Cover Story Some properties and operators are more ready than others for middle class customers. Mr Wieners mentions Sands China’s Venetian Macao and Studio City as middle market friendly properties, and he believes Sands’ Parisian will join that group. “Through a combination of room inventory, available space to build further amenities, and their commitments to promote non-gaming offerings, I feel these resorts will resonate with the new middle class Macau will need to begin attracting,” he says. Mr Wong sees all of the operators tilting toward the middle class to some degree, noting that Wynn and MGM, long focused on the high end and lacking Cotai properties, have been increasing their mass market tables and slots. Galaxy Macau’s first phase retail mix included shops that targeted middle class consumers, including drug chain Mannings and watch shop City Chain plus a range of casual dining along with more upmarket offerings. Galaxy’s Broadway Macau, opened in May along with the resort’s second phase, aims squarely at the middle market. Even before Studio City, Melco Crown’s City of Dreams had a Hard Rock Hotel and later introduced SOHO, a dining and entertainment area catering to the middle market. Later this year, SJM Holdings will reopen its redeveloped Jai Alai casino near the Outer Harbor Ferry Terminal with a 130 room hotel and retail, expected to target middle class customers. MAKING THE TURN “I think there is an understanding amongst the major players that middle class consumers want something different but it’s difficult to transition quickly,” Mr Cavender says. “So, the resorts are going in the right direction but it may take time for the market to develop and for middle class consumers to come in enough numbers to offset any losses to revenue from VIP gamblers and junkets.” Simply having facilities to serve the middle market isn’t enough, Mr Wieners suggests. “From a marketing perspective, organizations like Sands are well oiled machines that understand their customers and where they sit,” the marketing executive says. “Regular road shows and familiarization trips to Chinese agents and end-consumers have allowed Venetian Macao to remain a household name for those traveling to Macau. I see this happening with Parisian upon its opening and partly due to its iconic Eiffel Tower structure. Studio City has much to gain from the same exposure in key inbound markets, and a sexy, exciting product that will visually stimulate but must be combined with the right sales pitch.” It’s not a matter of the sales pitch, but what Macau has to sell. “Macau requires a major reengineering of products and services,” Mr Wieners says. “The majority of properties today have been planned and fitted out with a premium market in mind. In order to see success, the destination as a whole must work to reinvent the perceived service offerings available to visitors.” Citing a new generation of Chinese consumer that have traveled overseas, or see it as a genuine alternative to Macau, Mr Wieners says, “While we need to remain culturally relevant in our offerings, the lack of diverse offerings across entertainment, food, beverage and amusements are keeping the Macau brand off the travel lists for many in the Chinese middle class who perceive Macau as ‘boring’ or ‘just a gaming destination’ or ‘not a place for quality family entertainment.’ I believe the incoming Cotai resorts are aware of this and are in the process of shifting what they can with regards to “The challenge here is still moving beyond the image of hard core gambling as this isn’t necessarily what younger middle class consumers are looking for. Macau has absolutely added more attractions for non- gamblers or casual gamblers to enjoy, but there is still room to go.”