Macau gambling industry's quick V-shape rebound from 2014 to 2019

Abstract

PurposeThe purpose of this study is to summarize the factors that result in V-shape rebound of Macau gambling industry's from 2014 to 2019. Both internal and external factors are examined and discussed by representatives from academia, industry and government.Design/methodology/approachPractitioners from the gambling industry offered their cutting-edged analysis and viewpoints with observation and comments from scholars and government representatives in gambling domain.FindingsInternally, actions are taken by both the Macau government and Macau casino operators to rebrand Macau with nongambling elements and to adjust the strategies to attract more tourists from a wider range. Externally, global economic upturn and support from the China government also enhance Macau's quick rebound. A total of nine key factors are finally recognized.Originality/valueThis study provides answers and sense-making explanations to why Macau gambling industry can recover in such a short time after a big drop in Gross Gambling Revenue in 2014. This work reveals that Macau, by learning the lessons from the dramatic decline, conducts various self-rescue action plans which contribute to the quick V-shape rebound. This study is also a self-examination of Macau gambling industry from the firsthand perspectives of scholars, government representatives and casino management.

City resilience and recovery from COVID-19: The case of Macao

“…We submit that Macao's recovery phase is creating future vulnerabilities for a city increasingly reliant on gaming revenues and casino development. Research at the beginning of COVID-19 outbreaks in Macao acknowledged the possibility of limited economic diversification in a recovery scenario, due to the crucial importance of gambling to the city ( Liu et al, 2020 ). The relative absence of policy and public consultation in Macao throughout COVID-19, and the government's top-down approach to virus containment is unlikely to create a diversified economy.…”

Taking a break is for accomplishing a longer journey: hospitality industry in Macao under the COVID-19 pandemic

“…Macao experienced the SARS epidemic in 2003, which devastated the hospitality industry for a short period, particularly in Hong Kong (McKercher and Chon, 2004). Comparing the experience of SARS in 2003, when few online mental health services were provided for those in need (Liu et al , 2020), the current COVID-19 pandemic now includes the use of internet services and smartphones (Macao News, 2020). Technology-enabled solutions are now part of managing COVID-19 in Macao.…”

“…There is no alternative economy to gambling and hospitality in Macao (Liu et al , 2020). Since the first cases of COVID-19 in Macao, and a temporary closure of casinos for a few weeks, the gambling venues remained open, staffed, but with no patronage (Reuters, 2020a).…”

“…Galaxy Entertainment Group, one of the largest IRs on The Cotai Strip, organized more than 50 different internal staff training courses based on health, safety and virus prevention (Galaxy Entertainment Group, 2020). Maintaining and enhancing employment, health insurance and a healthy and safe working environment, have been important CSR practices by Macao’s casino industry during the pandemic (Liu et al , 2020). Wynn Macao and MGM Macao donated a range of COVID-19 preventative supplies, including protective clothing, face masks and liquid bleach, to local charities and social service agencies (Macao News, 2020).…”

“…Galaxy Entertainment Group, one of the largest IRs on The Cotai Strip, organized more than 50 different internal staff training courses based on health, safety and virus prevention (Galaxy Entertainment Group, 2020). Maintaining and enhancing employment, health insurance and a healthy and safe working environment, have been important CSR practices by Macao’s casino industry during the pandemic (Liu et al , 2020).…”