Macau’s Tourism Industry – How much is too much? A discussion on present gaps and considerations for responsible tourism

Macau’s Tourism Industry – How much is too much?A discussion on present gaps and considerations for responsible tourism growth in the future Dr. Glenn McCartney PhD Assistant Professor in Gaming & Hospitality Management University of Macau FMBA Breakfast Meeting, 24th April 2013

Bit of background • Been in Macao for 15 years starting as Director of Marketing and of PR of Macao’s 2nd largest casino hotel • Consulted for Waldo, Sands, StarWorld, MGM, Galaxy, and most of 2012 for The Venetian (opening of Sands Cotai Central) • During Macao’s liberalisation period worked for the Macao Government on gaming and tourism research - visited and reported on Korea, LV and Atlantic City developments

Sole author of 2 textbooks published by McGraw-Hill

Is there such a thing as too much tourism? • Depends if you are: • A local resident working or have a company benefiting in the industry • A local resident not working in the industry and limited benefits • An investor of some sort (and not necessarily living in Macao, and therefore subject to its local impacts) • You’re a foreigner working in Macao, getting a nice salary, and in the end will move back to your country and home • You are the natural environment (but who’s really asking them?)

So when do you say too much? • Can’t get a taxi? • Can’t afford a flat? • Can’t get a seat in my local restaurant I have been going for years? • Even if I did the menu has changed for the tourists and more expensive • Actually the local restaurant isn’t there anymore – replaced by a jewelry or pawn shop • As well as the business and environment landscape changing, values and attitudes start to change in families – money is king? • Higher school drop out rate eager to join industry • See more natural settings disappear or become concreted? • People don’t say hello on the street anymore….. Basically its when the negative fallouts from the developments outweigh the perceived positive ones

So depends if you are getting the brunt of the negative impacts or benefiting from the positive impactsWe call this the double edged sword of tourism

But Macao needs to keep developing in order to increase and drive visitation, tourism revenues, length of stay, positive word of mouth referral, shifting destination brand image… So the business opportunities are anything that can assist in this drive forward

And within this lies opportunity

Drive forward should more than ever in Macao now be based upon responsible and sustainable principles and codes on planning and management for Macao’s future development

Some interesting stats – within 10 years…

Some business barriers… • Depends if private or public sector: • Degree of collaboration between the gaming industry and the Macao Government • Organisational cultures and leadership styles – both in the gaming industry and Government • Government capacity and capability • Onus on the gaming industry to satisfy revenue and investor interest today (short term/long term focus) • Weakness in intellectual capital – an attribute of an international city is its intellectual capability • No tourism master plan – meaning quick fixes not long term strategy planning. Merely papering cracks to date. • We don’t know what to fix as limited scientific research on major issues relating to tourism and hospitality. Occasional reports on wealth gaps, satisfaction index – but given that this industry is over 80% of GDP it is not enough.

Managing tourism capacities is only one development factor from several…

Questions? glenn@insightsunlimited.com

Macau’s Tourism Industry – How much is too much? A discussion on present gaps and considerations for responsible tourism