Inside Asian Gaming

FEBRUARY 2016 inside asian gaming 11 Cover Story service offerings to maintain relevance with what this new Macau tourist will be seeking.” NOT SO HOT “Right now Macau as a whole may have a branding issue,” Mr Cavender says. “It really isn’t seen as a hot destination for younger consumers, and those are the consumers who are spending on travel right now.” He says, “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.” For today’s Macau, it’s still “hard to compete for consumer time and money when they have so many other destinations that they are interested in,” Mr Cavender says. “As consumers look at traveling to new destinations, they are also considering Korea, Singapore, the Philippines, markets that offer a lot more besides gambling.” “Singapore, Korea, and Taiwan have done excellent jobs in promoting the destinations by having an assortment of leisure and entertainment options catering to Chinese visitors,” Mr Wong says. “Singapore and Korea both have casinos, and they have better shopping options than Macau. Their food variety and authenticity are excellent. These places are also rich in sightseeing options and entertainment activities. Taiwan will pose a genuine threat to Macau’s market once it opens up casinos,” a prospect that may have become more remote with the Democratic Progressive Party winning last month’s presidential election. (Beijing has said it won’t allow mainlanders to travel to Taiwan for casinos, and the DPP is considered less friendly to Beijing than the outgoing Kuomintang party.) New integrated resorts will help make Macau more attractive to travelers, Mr Wong says, but beyond casino facilities, the city remains “reluctant to add new tourism facilities and activities.” “Like it or not, Macau must go the way of previous gaming destinations like Las Vegas and develop a quality destination brand campaign that reaches out and stimulates not only the Chinese market, but those throughout Asia as well,” Mr Wieners says. “Macau must work to drive the mass markets of other inbound locations, Southeast Asia, Korea, Japan. When the bulk of Asian markets begin coming to Macau en masse , the Chinese consumers will follow.” Mr Wong also sees Las Vegas providing “the best model” for Macau. “Las Vegas is no longer just Sin City and a hardcore gambling destination,” he says. “The city has somany affordable attractions and leisure activities: shopping, shows and entertainment, exhibitions, golfing, dining, and much more, all at affordable prices. “The key here is scale,” Mr Wong says, but he doubts pint- sized Macau can match the breadth and depth of attractions in Las Vegas, which began with a vast blank desert canvas. “Macau is too crowded for mass tourism. It is not even pleasant to walk around the city, a major problem that inhibits tourists from staying longer. With the soaring cost associated with service operations, Chinese tourists will soon realize – maybe they have already – that it may not be worth visiting Macau unless the city makes major improvements to its tourism infrastructures and facilities. With such a small piece of land, I don’t think Macau will ever be able to solve this problem.” But as US$23 billion of new operator investment rolls out, Macau may never have a better opportunity to reinvent itself yet again. It’s not just about attracting the middle class but making Macau the world center for tourism and leisure that government authorities say they want. That would be a new normal worth with a visit. “Like it or not, Macau must go the way of previous gaming destinations like Las Vegas and develop a quality destination brand campaign that reaches out and stimulates not only the Chinese market, but those throughout Asia as well.”