Abstract
Dubbed the “Las Vegas of the East,” Macao is the only location in China with legalized gaming. Before the world economic recession, tourist arrivals, gaming revenue, and hotel room inventory were all rapidly increasing, and growth is expected to resume as the economy improves. Macao faces many concurrent challenges and opportunities, including a narrow market of high-rolling table-game players, an undue reliance on gaming revenues (rather than shopping and lodging), an arrival pattern concentrated in China and Hong Kong, a long-term labor shortage, and a need to adapt some of the Las Vegas—style management strategies without losing its distinctive identity as China’s gaming playground. This comprehensive analysis assesses ways that Macao can capitalize on its opportunities and overcome its challenges. Suggestions to hospitality policy makers include combining marketing efforts with Guangdong and Hong Kong, developing air traffic from long-haul and low-price carriers, easing traffic congestion with light rail and a new Pearl River bridge, and developing more training and education facilities, as well as inviting expatriate Macao citizens to return for employment.
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