Macau’s Casinos Need Segregated Gaming Areas to Boost Foreign Traffic, Expert Suggests

Posted on: September 22, 2022, 07:28h. 

Last updated on: September 22, 2022, 11:04h.

Macau’s casino market is undergoing what is arguably its most significant transformation in 20 years. The Chinese SAR wants to attract more foreign visitors, and a Macau gaming expert believes the best way is to give them their own gambling spaces.

China has always been an important market for Macau, along with Hong Kong. Macau’s long-term aspirations, however, include becoming a destination for tourists from other parts of the world.

The city has already laid out plans to accomplish this, requiring casino operators to invest in community projects that will diversify Macau. Gambling, however, continues to be a big component of its attractiveness. Davis Fong Ka Chio, director of the University of Macau’s Institute for the Study of Commercial Gaming, has a plan to boost the gaming market.

Macau Open to Everyone

Macau wants to be a travel destination for everyone, not just gamblers. This is due, in no small part, to mainland China’s opposition to gambling. It doesn’t want its people flocking to the city and risking hundreds of millions of dollars in capital flight.

However, Macau is practically built on gambling, which will continue to play a significant role in the city’s economic stability. Fong told Radio Macau on Wednesday that offering exclusive gaming zones inside casinos could go a long way to help the gaming market thrive.

I think Macau’s existing gaming facilities can attract foreign visitors, but the gaming elements can be improved in the future. Different ways of playing can be added to the gaming facilities, or a dedicated gaming area for foreign visitors to give them a sense of privilege,” said Fong.

Joining Fong in the conversation was Song Wai Kit, president of the Macau Responsible Gaming Association. He believes there’s another way to boost international traffic, and it’s one that should already be in place.

In order to attract foreign gamblers, casino employees have to speak foreign languages. Of course, this is true of any tourist destination. But Macau, according to Song, may be missing the mark. He emphasized that workforces should strengthen their “multilingual skills,” while the casinos should offer “services that cater to visitors of different nationalities.”

Although opulence abounds in Macau, there is an overwhelmingly common theme on the gaming floors. This might turn off some would-be foreign travelers. That isn’t to say that Macau needs anything like Vegas Vic, but diversity is the key to Macau’s future.

Genting Move Still Shocks

There are six gaming concessions in Macau, with six well-entrenched operators tightly holding on to their licenses. Each of them has submitted applications to receive new concessions at the end of this year, with none expecting to exit.

Samuel Yin Shao Yang, associate director of Maybank IB, warns that some operators may be overly optimistic about their status in Macau. He feels they could be putting their futures there at risk. In an interview with Inside Asian Gaming this week, he highlighted Genting’s success in Singapore and elsewhere as an example of what could happen.

Genting has been the underdog on several occasions –Resorts World Sentosa in Singapore and Yokohama, Japan, are two good examples. Therefore, the Maybank analyst warns operators to “underestimate [Genting] at your own peril.”