The Las Vegas business model, with its focus on non-gaming, may offer valuable insights\u2014but Macau must carve out its own path, experts say<\/strong><\/p>\n Macau Business | February 2025 | Special Report | Concert Economy<\/strong><\/p>\n An unexpected study by researchers from Shenzhen Tourism College of Jinan University reveals a significant shift in Macau\u2019s tourism image.<\/p>\n What the authors conclude is that Macau, once primarily seen as a gambling hub, is now emerging as a \u201ccity of art and fashion,\u201d an \u201cinternational gourmet city,\u201d a \u201ccity of hospitality,\u201d and a \u201ccity of history and culture.\u201d<\/p>\n \u201cWhile gaming remains a prominent aspect of Macau\u2019s identity, the study reflects a shift towards a more diverse and culturally appealing perception,\u201d the researchers note.<\/p>\n However, they also highlight a concern: \u201cThe image of \u2018a city of hotel services\u2019 is relatively low, reflecting significant hidden risks present in Macau\u2019s hotel industry.\u201d<\/p>\n Carlos Siu Lam of Macao Polytechnic University (UPM) elaborates on this trend: \u201cWith Macau\u2019s 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.\u201d<\/p>\n \u201cWith Macau\u2019s emphasis on the non-gaming segment, entertainment shows and concerts have become some of its distinctive elements\u201d \u2013 Carlos Sui Lam <\/p>\n<\/blockquote>\n<\/figure>\n Importing the Las Vegas model?<\/strong> Is this transformation essentially an adoption of the Las Vegas business model, where non-gaming revenue dominates?<\/p>\n Macau Business gathered insights from a panel of experts, who hesitate to fully endorse a direct replication of the Las Vegas model.<\/p>\n The closest to this view is Sonny Lo, a political scientist and author with extensive research in the field. \u201cIf 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 \u2018Macaunised\u2019 version of the Las Vegas casino model.\u201d<\/p>\n But what exactly does this \u2018Macaunised\u2019 model entail?<\/p>\n Lo explains: \u201cMany customers from mainland China and Hong Kong still enjoy the playground-like atmosphere of Macau\u2019s casinos, where food, restaurants, and various events cater to them and their families.\u201d He predicts that policies such as relaxed travel rules for Zhuhai tourists will further boost business for Macau\u2019s casinos.<\/p>\n \u201cMacau\u2019s version of the Las Vegas model\u2014where casinos offer a blend of Chinese cultural elements, playground-style betting tables and slot machines, alongside restaurants, food services, and family-friendly tourism\u2014is not only persisting but flourishing,\u201d adds the author of\u00a0Casino Capitalism, Society and Politics in China\u2019s Macau<\/em>\u00a0(2020).<\/p>\n \u201cMacau\u2019s increasing emphasis on integrating non-gaming elements, such as concerts and cultural events, may mirror aspects of the Las Vegas model\u201d \u2013 Ryan Ho <\/p>\n<\/blockquote>\n<\/figure>\n Macau\u2019s unique path<\/strong> Ryan Ho, from Macao Polytechnic University (UPM), acknowledges that \u201cMacau\u2019s increasing emphasis on integrating non-gaming elements, such as concerts and cultural events, may mirror aspects of the Las Vegas model.\u201d He adds, \u201cThe development experience of Las Vegas can serve as a valuable reference for Macau.\u201d<\/p>\n However, Ho also points out that Macau\u2019s distinct characteristics set it apart: \u201cGiven 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.\u201d<\/p>\n \u201cMacau 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,\u201d he suggests.<\/p>\n Prof. Ubaldino Couto, from the Macao University of Tourism, further reinforces this perspective: \u201cIt is crucial that we create our own model, tailored to our market demands, capabilities, political system, and other factors shaping Macau\u2019s future.\u201d He also highlights an important reality: \u201cMacau\u2019s gaming revenues surpassed those of Las Vegas years ago.\u201d<\/p>\n \u201cThe recent push for economic diversification has not really altered this \u2018Macaunised\u2019 version of the Las Vegas casino model\u201d- Sonny Lo<\/p>\n Previous | China\u2019s help\u2026<\/a><\/strong><\/p>\n<\/p><\/div>\n
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