Panel Title

Session 2-2-F: But What Does the Research Say? Perspectives on Macau’s Free Fall

Location

The Mirage Hotel & Casino, Las Vegas, Nevada

Start Date

8-6-2016 10:30 AM

End Date

8-6-2016 12:00 PM

Abstract

This paper briefly reviews the success in last decade and analyzes the challenges in Macau casino gaming industry. Macroeconomic and political factors in China are the principal direct cause of Macau’s gaming revenue decline in 2014, implicating the vulnerability and unsustainability associated with the VIP business model of casino gaming industry. Although Macau continues to face challenges since late 2014, the prospect of Macau gambling industry is still optimistic in the long term, as there are emerging positive catalysts which will boost demand. From casino operators’ perspective, they should continue to try to increase revenue from mass market and non-gaming business by relocating the resource and adding more non-gaming amenities. This paper provides a fresh perspective, and a new line of thinking with regard to how casino gaming industry in Macau will develop in the future. It therefore potentially directs a new path of research in the area.

Keywords

Casino gaming industry; China -- Macau; Macau; VIP market; Mass market; Diversification; Gambling industry

Disciplines

Economics | Hospitality Administration and Management | International Business | Tourism and Travel

Comments

Attached: PDF containing 32 slides

 
Jun 8th, 10:30 AM Jun 8th, 12:00 PM

The Challenges and Opportunities in Macau Casino Gaming Industry

The Mirage Hotel & Casino, Las Vegas, Nevada

This paper briefly reviews the success in last decade and analyzes the challenges in Macau casino gaming industry. Macroeconomic and political factors in China are the principal direct cause of Macau’s gaming revenue decline in 2014, implicating the vulnerability and unsustainability associated with the VIP business model of casino gaming industry. Although Macau continues to face challenges since late 2014, the prospect of Macau gambling industry is still optimistic in the long term, as there are emerging positive catalysts which will boost demand. From casino operators’ perspective, they should continue to try to increase revenue from mass market and non-gaming business by relocating the resource and adding more non-gaming amenities. This paper provides a fresh perspective, and a new line of thinking with regard to how casino gaming industry in Macau will develop in the future. It therefore potentially directs a new path of research in the area.