Views on Macau | Smoking ban: What steps should Macau take?

The debate about smokers’ versus non-smokers’ rights continues and will continue as long as there are smokers in the world. What we all agree in this debate is that no employers should sacrifice employee health for business return. It is the responsibility of each employing organisation to find the right balance between employees and customers.
Since 6th October 2014, the Macau Government has expanded smoking ban to casino main floors. Smoking is now only allowed in VIP rooms and enclosed airport-style smoking rooms that do not contain any gaming tables or slot machines. Some expressed concerns that the policy could hurt gaming operators’ revenue which is already declining due to Beijing’s anti-graft campaign. In the same month, Barclays said, “the negative impact from a stricter smoking ban is now highly likely to be more than we previously expected.” There seems to be evidence that Macau casinos are suffering from the non-smoking policy. Macau casino revenue fell to 23.3 billion patacas in December 2014 for a seventh straight month of decline and the biggest drop since records began in 2002 according to the Gaming Inspection and Coordination Bureau.
When the Hong Kong government implemented the 2006 Public Health (Smoking) (Amendment) Ordinance to ban smoking in indoor areas, the catering trade feared they would close down business. The purpose of the Amendment Ordinance was to protect members of the public against second-hand smoking in both indoor workplaces and indoor public places especially restaurants and karaokes. The smoking ban was enacted finally in the face of the overwhelming opposition from the catering trade. However, the results were positive. The Hong Kong government stated that restaurant receipts had surged by around 30% after the smoking ban had taken effect for around two years, and that employment had also increased in the hospitality industry in the same period.
A recent report published by the School of Public Health and Department of Community Medicine of the University of Hong Kong indicated that the Amendment Ordinance made an important contribution to the protection of many catering workers in their workplace. Levels of tobacco chemicals in smoke-free restaurants were reduced by up to 90% compared to the pre-ordinance period. This helps to reduce the harm of second-hand smoke, thereby improving the community health and reducing the medical expenditure of the government.
Returning to the topic of Macau, did anyone – gaming operators or financial analysts – count those long-term benefits of tobacco control raised by the Hong Kong government? With more than 85% of government revenue coming from the casinos, it still remains to be seen if the long-term benefits will outweigh the potential immediate financial losses.
In Macau, there are many gamblers coming from mainland China which is the world’s largest nation of smokers. A hypothesis is that the desire to smoke will urge gamblers to leave the gaming tables to smoke, allowing them to take time to consider leaving with their winnings or going back. These smoke breaks will lead to casino revenue loss. But I think this concern is far less important than the two emerging issues – China’s economic slowdown and Macau’s labour problems.
Macau now relies too much on one source of visitors – mainland gamblers. Beijing has urged Macau to come up with concrete plans to diversify its economy. It is time for Macau to transform itself with responsible gaming and environmental initiatives and gain the potential to be a world tourism and leisure destination, competing with other Asian countries such as Singapore.
Given the shortage of labour, casino operators are facing the rising labour cost and negative impact of employee turnover on operating performance. There is an increased awareness of employee rights in Macau. Labour activists advocated the smoking ban to be enforced in VIP rooms as soon as possible. Besides offering competitive wages, building a pleasant working environment can help to attract and retain staff.
As a key market player in Macau, the gaming industry should take greater social responsibility in the development of a sustainable community. Macau is suffering not because of tobacco control but because of being unchanged in response to global dynamics. Teresa Chan, CSR Asia Weekly, Courtesy CSR-Asia.com