72
Gaming
Casino - Galaxy Macau MICE (meetings, incentives, conven-
tions and exhibitions) and hotels that contribute most to non-gaming revenue, experts say. Retail and food and bever- age can help under certain circumstanc- es but nothing else moves the needle signi cantly. Part of Macau’s failure to diver-
sify its revenue is the limited impact of MICE, with the number of events held dropping last year. “The numbers were supposed to come from Hong Kong or China,” SJM’s Mr Murray says. Last year, Macau and Beijing au-
thorities agreed on the creation of a list of MICE events taking place in Macau for which visa application processing will be made easier for mainland trade visitors. MICE supports hotel occupancy,
usually the highest pro t margin item per dollar spent on the resort menu. But rooms need to be held in reserve for gamblers, creating potential operational con icts. “Rooms have to be seen as strategic
assets,” Melco Crown vice-president for customer relationship management, loy- alty and pro t optimisation Steven Pin-
JANUARY 2012
chuk says. “The difference in demand is dramatic between weekends and week- days.” Weekends are the most popular
time for leisure travellers, as well as gamblers. Operators have to make tough choices, choices that become easier if the resort has a massive inventory of rooms, best supported by MICE during non-peak periods, which leads to the Las Vegas model.
Tempting menu “Integrated resorts won’t be the same in every market,” Mr Pinchuk says. “If you have the wrong elements, you’re trying to shift demand. Instead, put the product where demand is.” Galaxy Entertainment Group Ltd.’s
Galaxy Macau has enjoyed outstanding early success with limited MICE and retail components. The resort features Asian hotel brands, Japan’s Okura and Southeast Asia’s Banyan Tree, not pre- viously found in Macau or Hong Kong, consistent with the property’s focus on Asia travellers. Galaxy’s signature non- gaming attraction, the sky top wave pool and beach, arose from research showing
tropical Hainan island was the top tour- ist destination for mainland Chinese and that
they paid premium prices to stay
there. Last month, Galaxy Macau opened
a cineplex, appealing to mainland tour- ists who have a limited selection of imported lms at home, as well as the Macau market. Pro ts may be slim, but IGamiX Management and Consulting managing partner Ben Lee notes that the movies, plus retail and dining options geared to the mass market, create traf c, giving Galaxy Macau the buzz Chinese gamblers like at a property. “Build with exibility to turn to-
ward what the market wants,” Mr Mur- ray says. But as with ships, the bigger the resort, the harder it can be to turn.
About this report: This article grew out of a panel discussion on casino resorts at the recent Asian Casino and Gaming Congress in Singapore. Panellists were Mr Arasi, Mr Murray and Mr Pinchuk. Macau Business special correspond- ent Muhammad Cohen moderated the panel and supplemented the article with additional reporting.
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