Integrated resorts (IRs) must adapt to government expectations and shifting market dynamics to remain competitive, a gaming expert said.
Niall Murray, an expert in IRs, gaming and hospitality, shared insights on the evolving IR landscape during yesterday’s breakfast talk hosted by the France Macau Chamber of Commerce (FMCC).
The event, titled “Growing Regional Competition, Diversification and Its Impact on Integrated Resorts in Macau,” highlighted both the challenges and opportunities facing IRs in Macau and across Asia as they navigate a post-pandemic world.
With a wealth of experience from senior roles at notable establishments like Omni Hotels and the Venetian in Las Vegas, he underscored the growing regional competition Macau faces.
“There is a lot happening internationally, and Macau is currently in a transitional recovery phase following Covid-19,” said Murray, chairman of Murray International.
This transitional phase presents multifaceted challenges for Macau’s IRs.
Operators are tasked with fulfilling numerous responsibilities tied to their 10-year concessions, which include enhancing non-gaming investments and revitalizing older districts.
However, Murray cautioned that “there is no clear roadmap to the finish line,” leading to confusion and uncertainty in the economy.
Murray provided a comparative analysis of global markets, with a particular focus on Las Vegas, which has seen notable recovery post-pandemic.
He pointed to innovative entertainment options and the expansion of sports facilities as key factors driving this transformation.
A standout example is “The Sphere” at the Venetian Resort, Las Vegas, recognized as the world’s largest spherical structure.
This USD2.3 billion venue features an immense LED screen and can accommodate up to 18,600 guests, showcasing cutting-edge audio-visual technology.
In contrast, regions like Cambodia and Australia face regulatory hurdles that stifle growth potential.
Murray said these challenges limit their ability to innovate like Las Vegas, which has embraced a diversified tourism strategy incorporating major sporting events alongside traditional gaming.
Turning his focus back to Macau, Murray highlighted significant statistics indicating a rebound in visitor numbers and gaming revenue.
In August, visitor arrivals reached a record high of 3,651,731—a 13.3% year-over-year increase—surpassing pre-pandemic levels from August 2019 by 0.8%.
Notably, same-day visitors surged 23.4%, while overnight visitors increased 2.7%, with the mainland remaining the primary source market at 2.75 million visitors.
Despite these promising figures, Murray expressed concern over Macau’s competitive standing relative to other regions.
He praised Singapore for its collaborative public-private sector initiatives that enhance its appeal as a destination.
Although Singapore operates only two casino resorts, it remains “very competitive,” with operators nearly doubling their initial investments.
Murray said Singapore “doesn’t rest on its laurels,” as demonstrated by ongoing projects like the Marina Bay Sands Expansion and Resorts World Sentosa 2.0, both set to be completed by 2029 and 2031, respectively.
Additionally, the country is enhancing its transport infrastructure with the expansion of Changi Airport Terminal 5 to accommodate more visitors.
These substantial investments aim to bolster Singapore’s tourism sector by creating world-class facilities that appeal to both leisure and business travelers.
The Marina Bay Sands expansion includes a new hotel tower, a 15,000-seat entertainment arena, an additional 1,000 hotel rooms, expanded MICE (Meetings, Incentives, Conventions and Exhibitions) facilities, and an increase in gaming machines.
In contrast, Resorts World Sentosa focuses on expanding Universal Studios Singapore with attractions like “Minion Park” and “Super Nintendo World,” constructing a new waterfront lifestyle complex with 1,100 hotel rooms while enhancing the waterfront promenade.
Murray said successful integrated resorts must continuously innovate while collaborating strongly with government entities.
He referenced MGM’s plans to develop a new project at Mina Zayed Waterfront in Abu Dhabi as an example of this trend.
In discussing regional competitors, he said the Philippines is making significant strides through aggressive expansions by companies like Alliance Global Group.
Conversely, he noted Macau risks stagnation by focusing too heavily on compliance rather than innovation.
Looking ahead, Thailand could emerge as a formidable player in the integrated resort landscape under Prime Minister Paetongtarn Shinawatra’s proposed casino legislation—anticipated to pass as early as 2025 with potential openings by 2029.
This law has attracted major players due to its favorable terms, with gaming licenses valid for 30 years with a base tax rate of just 17%, compared to Macau’s hefty tax rate of 40% on gross gaming revenue.
With “ambitious goals to increase inbound tourism from 36 million to 60 million by 2030,” these developments are seen as vital for revitalizing Thailand’s economy and shaking up the gaming landscape. Nadia Shaw
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