During a panel discussion at the MGS Summit, Macau’s leading casino operators shared their perspectives on the current state of the market and the strategic importance of non-gaming investments. MGM China’s President and COO, Hubert Wang, emphasized the need for unique positioning and cautioned against repetitive investments, advocating for a complementary approach among operators.
Strategic Investment Focus:
Hubert Wang, MGM China’s President and COO, suggested that the success of non-gaming investments is influenced by the “Pareto principle,” where 20% of the investment yields 80% of the impact. He stressed the importance of identifying and focusing on impactful initiatives rather than pursuing repetitive investments. This strategic approach aims to maximize the overall benefits of non-gaming expenditures.
Complementary Offerings:
Wang urged Macau’s concessionaires to avoid duplication and instead complement each other’s offerings. While some operators may focus on concerts, others might emphasize the arts. The key, according to Wang, is collaboration to create a diverse and attractive entertainment landscape that appeals to a broad range of tourists, ultimately benefiting all stakeholders.
Concerts Driving Economic Growth:
Sands China’s President and Executive Director, Wilfred Wong, highlighted the potential economic impact of concerts, even if their direct profitability might be minimal. Wong emphasized that driving the concert economy can contribute significantly to the overall economic growth of the city. A collaborative effort among concessionaires to organize popular concerts was seen as mutually beneficial.
Government Collaboration for Tourism Growth:
SJM’s Chief Operating Officer – Gaming and Hospitality, Frank McFadden, emphasized the need for a collaborative approach between the government, academia, and industry experts to create a “visitor experience ecosystem.” This ecosystem would address impediments such as traffic, taxi services, and flight amenities, collectively fostering an environment conducive to Macau becoming a tourism hub.
Talent Development and Retention:
McFadden acknowledged the importance of addressing the “brain drain” from Macau by bringing back foreign talent to mentor and train local professionals. This sentiment was echoed by other panelists, including Hubert Wang, who stressed the significance of training local talent to assume leadership roles, especially in strategic thinking and vision.
International Perspective for Growth:
Macau operators, including Wilfred Wong of Sands China, recognized the need for an international perspective in driving growth, particularly with the increasing focus on non-gaming elements. While the majority of management may be local, attracting and nurturing outside talent becomes crucial in fostering innovation and leadership in the evolving industry landscape.
The insights shared by Macau’s leading operators underscore the strategic considerations essential for the success of non-gaming investments. The emphasis on unique positioning, collaboration, and talent development reflects a forward-looking approach to navigate the dynamic casino market. As Macau continues to evolve into a comprehensive entertainment destination, the collective efforts of operators, supported by government collaboration, are pivotal in shaping the city’s future as a global tourism hub.