The Las Vegas business model, with its focus on non-gaming, may offer valuable insights—but Macau must carve out its own path, experts say
Macau Business | February 2025 | Special Report | Concert Economy
An unexpected study by researchers from Shenzhen Tourism College of Jinan University reveals a significant shift in Macau’s tourism image.
What the authors conclude is that Macau, once primarily seen as a gambling hub, is now emerging as a “city of art and fashion,” an “international gourmet city,” a “city of hospitality,” and a “city of history and culture.”
“While gaming remains a prominent aspect of Macau’s identity, the study reflects a shift towards a more diverse and culturally appealing perception,” the researchers note.
However, they also highlight a concern: “The image of ‘a city of hotel services’ is relatively low, reflecting significant hidden risks present in Macau’s hotel industry.”
Carlos Siu Lam of Macao Polytechnic University (UPM) elaborates on this trend: “With Macau’s emphasis on the non-gaming segment, entertainment shows and concerts have become some of its distinctive elements. Concerts featuring popular singers from China, Hong Kong, or South Korea would not only attract fans from these regions, ensuring a strong level of bookings, but also generate revenue in hotel accommodation, F&B, and other related sectors.”
“With Macau’s emphasis on the non-gaming segment, entertainment shows and concerts have become some of its distinctive elements” – Carlos Sui Lam
Importing the Las Vegas model?
Is this transformation essentially an adoption of the Las Vegas business model, where non-gaming revenue dominates?
Macau Business gathered insights from a panel of experts, who hesitate to fully endorse a direct replication of the Las Vegas model.
The closest to this view is Sonny Lo, a political scientist and author with extensive research in the field. “If the Las Vegas model of casinos and the gaming industry is characterised by non-gaming elements alongside family tourism, then this has always existed in Macau. The recent push for economic diversification has not really altered this ‘Macaunised’ version of the Las Vegas casino model.”
But what exactly does this ‘Macaunised’ model entail?
Lo explains: “Many customers from mainland China and Hong Kong still enjoy the playground-like atmosphere of Macau’s casinos, where food, restaurants, and various events cater to them and their families.” He predicts that policies such as relaxed travel rules for Zhuhai tourists will further boost business for Macau’s casinos.
“Macau’s version of the Las Vegas model—where casinos offer a blend of Chinese cultural elements, playground-style betting tables and slot machines, alongside restaurants, food services, and family-friendly tourism—is not only persisting but flourishing,” adds the author of Casino Capitalism, Society and Politics in China’s Macau (2020).
“Macau’s increasing emphasis on integrating non-gaming elements, such as concerts and cultural events, may mirror aspects of the Las Vegas model” – Ryan Ho
Macau’s unique path
Ryan Ho, from Macao Polytechnic University (UPM), acknowledges that “Macau’s increasing emphasis on integrating non-gaming elements, such as concerts and cultural events, may mirror aspects of the Las Vegas model.” He adds, “The development experience of Las Vegas can serve as a valuable reference for Macau.”
However, Ho also points out that Macau’s distinct characteristics set it apart: “Given its market structure, limited land resources, and existing developments, Macau has been formulating its own optimal model to suit the local context and regional environment.”
“Macau can enhance its appeal by leveraging its cultural and historical assets alongside entertainment options. As part of the Greater Bay Area, Macau should collaborate with its neighbouring cities to offer a distinctive multicultural experience for both regional and international visitors,” he suggests.
Prof. Ubaldino Couto, from the Macao University of Tourism, further reinforces this perspective: “It is crucial that we create our own model, tailored to our market demands, capabilities, political system, and other factors shaping Macau’s future.” He also highlights an important reality: “Macau’s gaming revenues surpassed those of Las Vegas years ago.”
“The recent push for economic diversification has not really altered this ‘Macaunised’ version of the Las Vegas casino model”- Sonny Lo
