Macau must find its own formula to develop the non-gaming entertainment industry, rather than blindly follow other places, according to the head of the American Gaming Association (AGA).
Geoff Freeman, president and chief executive of AGA, said Macau should avoid duplicating the moves of mature non-gaming entertainment markets as Las Vegas and Singapore, the Hong Kong Economic Journal reported.
While Macau has seen a decline in gaming revenues in the past year, the non-gaming elements show some promise, Freeman was quoted as saying.
Macau is moving in the right direction as it seeks to diversify its industry revenues, he said.
In Las Vegas, it is not just nightclubs that are lucrative, Freeman said, pointing out that dayclubs also bring the US city millions of dollars of business opportunities.
A symbiotic relationship has to be created between the industry and tourists, he said, adding that the transformation should be a a continuing process.
Non-gaming entertainment contributes less than 10 percent of Macau’s total gaming revenue at the moment, compared with two-thirds in Las Vegas.
Apart from the pressure brought about by the Chinese government’s anti-graft pressure, Macau’s gaming sector is also facing rising competition from Japan and Korea, among other places.
Freeman, however, expects the Macau market to thrive as demand is expected to rise in the Asia region in the next five to 10 years.
[Chinese version 中文版]
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