The CAT (Casino Tourism) and the MICE (Meetings, Incentives, Conventions, Exhibitions): Key Development Considerations for the Convention and Exhibition Industry in Macao

Abstract

ABSTRACT In 2006, Macao became the world's leading gaming destination in terms of gaming revenue and by mid 2008 had surpassed the gaming revenues of Las Vegas and Atlantic City combined. Casino tourism (CAT) in Macao continues to grow, but with the opening of The Venetian, the first integrated resort on the Cotai Strip,1 convention and exhibition-based tourism is beginning to emerge. Due to its lure of being a high-yield tourism sector, MICE (meetings, incentives, conventions, exhibitions) tourism has been increasingly introduced at destinations, including gaming jurisdictions such as Las Vegas. Yet, Macao's gaming industry for the greater part remains divorced from the need for a convention product in terms of revenue creation at present, with two models of gaming development emerging. It is a key aim of the Macao Government to develop Macao into a major leisure and entertainment center, widening and expanding its tourism market segment beyond gaming. The MICE sector has therefore become an increasingly important focus and direction of resources for the Macao Government. Macao, though, is faced with the challenge of changing traveler perceptions of the destination from being solely a gaming destination to that of additionally being an attractive convention and exhibition destination image. Macao is also entering a regional market with mature and leading MICE destinations. This article examines strategic planning and management considerations for Macao as it attempts to reposition itself to develop the MICE industry in the world's most lucrative gaming market. Highlighted are the challenges in re-branding and repositioning Macao, economic justification, and tourism policy considerations on issues such as infrastructure development to support this vision of the Macao Government and those of the newly integrated resorts emerging on Macao's Cotai Strip.