Macau under threat as mainland China gamblers cut spending
Gambling hub needs to broaden appeal as mainlanders bet less amid cooling economy and corruption crackdown, says casino boss
Macau is facing threats to its growth from the mainland’s slowing economy and greater foreign competition, escalating the need for the world’s largest gambling hub to diversify from its casino gaming roots.
Pansy Ho Chiu-king, co-chairman of MGM China, said the economic slowdown and “the fact that … foreign destinations might become competitors” were the biggest risks to Macau’s growth.
As mainland tourists travelled more frequently and further afield, the city could gradually lose its appeal, Ho said.
“We’re already beginning to see that customers coming through our doors are more demanding,” she said.
Mainland tourists have been powering the growth of Macau, which in 2006 took over from Las Vegas to become the world’s largest gambling hub. Casino operators such as MGM China and Sands China have added shops, restaurants and shows to draw mainland travellers as high-stakes gamblers cut spending amid a cooling economy.
I’d like to really do more for Macau, promoting [it] as a destination
Ho, whose father Stanley Ho Hung-sun held a 40-year gambling monopoly in Macau until 2002, is helping lead a drive to transform the city into a global tourism destination. The 51-year-old sees the need to reduce Macau’s reliance on gaming halls that raked in US$45 billion of casino revenue last year.