Dr. Glenn McCartney PhD Assistant Professor in Gaming & Hospitality Management University of Macau FMBA Breakfast Meeting, 24 th April 2013.

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 PhDAssistant 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 impacts

We 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…

2001 2011 Increase (%)

Employed population 205,000 328,000 60%

- Manufacturing 45,000 13,000 71 (-)%

- Hotel, retail 44,000 78,000 77%

- Gaming 18,000 70,000 288%

- Domestic 5,000 17,000 240%

Earnings 4,700 10,000 112%

- Hotel, restaurant 4,000 7,800 95%

- Public utilities 10,000 17,500 75%

- Education 8,700 15,000 72%

- Gaming n/a 13,700

- Health, social welfare 9,900 12,000 21%

Rice (CPI) 53 (82) 115 (110) 54%

Fish 62 143 130%

Some interesting stats – within 10 years…

2001 2011 Increase (%)

Marriages 1,222 3,545 190%

Divorces 348 988 183%

Private Clinics

- Macao 310 355 15%

- Taipa 3 21 600%

- Beds 1,091 1,414 29%

Life expectancy 79 yrs 82 yrs 4%

University students 8,358 24,156 189%

Crime 8,900 12,512 40%

- Assault 1,310 1,729 32%

- Against public authority

324 710 119%

Court caseload - pending

5,278 11,437 116%

Court caseload - filed 9,495 16,747 76%

Some interesting stats – within 10 years…

2001 2011 Increase (%)

Motor vehicles 115,000 206,000 79%

Motorbikes 58,300 110,000 100%

Traffic accidents 9,800 14,100 44%

Phonecalls outgoing 158 billion mins

350 billion mins

122%

- Philippines 3.2 15.3 378%

- Australia 2.4 1.9 21(-)%

- UK 3.1 2.0 35(-)%

- France 0.3 0.2 33(-)%

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…

[email protected]

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