MGM eyes record breaking figures in upcoming Golden Week as investment continues in arts and culture

Catarina Lio and Iwan Dietschi

MGM Macau has its focus on art and culture after promising the government to help diversify the local economy by investing in non-gambling attractions.

The company has announced new plans to expand its space to achieve this at its two properties in town, doubling down on investments.

With the sustained growth in the casino and tourism sector, the gaming operator anticipates robust bookings and increased foot traffic in the upcoming Golden Week.

“We have been in a very good position since the reopening and we’re doing extremely well. I think the trend will continue to strengthen,” said Iwan Dietschi, senior vice president of hospitality at MGM Macau.

“We’re on the right track to establishing a reputation for the extraordinary here in Macau,” he added.

Speaking at a recent opening of a high-end jewelry exhibition at MGM Macau, the executive has expressed optimism for the hospitality sector, adding the upcoming seven-day holidays are set to break post-pandemic records as it is the first holiday of its kind in four years where customers can attend without restrictions.

Local tourism authorities are forecasting an average of 100,000 visitors a day during the upcoming National Day Golden Week, with hotel occupancy rate projected to reach 90%.

“We are very confident that we can bring the extraordinary to Macau,” he added.

Meanwhile Catarina Lio, senior vice president of Brand Marketing for the gaming operator, added that with the development of the market, the trend now among tourists is to “look for a different type of experience.”

“The market [has changed] a lot. It has certainly changed compared to 10 years before. People are coming and they really want to create their own individual experience,” said Lio.

In terms of meetings, concerts and shows, Lio is confident with what the gaming operator can offer.

Following the revamp scheduled to conclude in the third quarter of next year, Lio believes the gaming operator is poised to create the ideal environment and meet evolving market needs.

60,000 square feet of space at MGM Macau is currently under transformation into a completely novel multimedia space for meetings, incentives and conferences. The revamped area will be capable of hosting performances, fashion shows and art exhibitions, among other events of a similar scale.

Clientele shift

Recent research from travel agency giant Ctrip shows that Macau was among the most popular destinations for Chinese outbound travel.

While this trend is predicted to last, there is also a change in demographics.

Just recently, Pansy Ho, chairperson and executive director of MGM China Holdings Limited, spoke at a tourism expo and observed that visitors are increasingly coming for shopping, diverse dining experiences and other forms of entertainment – unlike in the past where the primary reason for visiting was gambling.

When asked by the Times about MGM’s readiness to accommodate such clientele amid this shift, Dietschi remarked, “We understand that obviously the demographics change, and we have a lot of opportunities. There are things that MGM have done already to attract certain types of clientele.”

“We’ve had the opportunity to position ourselves as the hotel catering for a wide audience. Everything that we do has a clear purpose and targets certain clientele – we’re aiming for the crème de la crème,” he added.

Macau has endured some of the world’s strictest anti-virus controls for nearly three years, and a relaxation of border restrictions after China rolled back its “zero-Covid” strategy was widely expected to boost its tourism-driven economy.

Government data shows that visitor arrivals in Macau totaled 17.63 million in the first eight months of 2023, representing a surge of over 360% compared to the same period last year.

Whether the city is able to sustain such growth remains a question, as after the upcoming Golden Week, the next Chinese holidays will be the Lunar New Year.

Gaming analysts have already lowered expectations for September, following post-pandemic record highs in gaming and in tourist arrivals achieved in August.