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Macau struggles to grow beyond gambling

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Macau is fighting a strong – but till now unsuccessful – battle against gambling addiction. The Chinese region is a haven of casino resorts, which generate bulk of their revenue from gambling and non-gambling activities. But Macau’s authorities, in their bid to fight gambling addiction, reckon that the casinos can generate over 40 per cent of their total income from non-gambling activities. It looks realistic, but is not happening. Lacklustre infrastructure, poor branding and an inattentive bureaucracy stand in the way of Macau’s diversification.

Local authorities can do a lot more to promote Macau on an international level. Even in the wake of China’s corruption crackdown – which squeezed gaming revenue – a five-year development plan for 2016–2020 aimed for non-gaming revenue of just 9 per cent.

Despite the gambling hub’s comfortable current-account surplus, transportation links are missing. A long bridge to Hong Kong airport is nearly finished, but other projects lag behind. Trains sit motionless on an unfinished railway linking the casino district to the old city centre. The cavernous Taipa ferry terminal is half empty, while its shabby, chaotic counterpart in Hong Kong jars with the glitzy destination.

Red tape also hinders efforts to roll out new services. Employers hesitate to hire industry pros with global experience, fretting over policies designed to protect local workers. Opening so much as a resort cafe requires permission from multiple agencies.

A relaxed approach to promotion beyond China, where Macau is pigeon-holed as a gambling hub, has failed to lure tourists with more varied interests. That confounds efforts to cultivate an array of attractions, like the many live events and recreational activities on and around the renowned Las Vegas Strip. To secure its future, Macau will have to double down on diversification.

 

Source: Reuters

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.

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