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Non-gaming push could impact Macau’s SMEs: Fong

The increase in non-gaming offerings from Macau’s concessionaires could potentially have an impact on local small and medium enterprises, especially in the restaurant and hotel business, says a Macau gaming academic, MNA reports.

Professor Davis Fong, who did a study on local economic diversification noted that the continued non-gaming diversification of gaming operators could reduce the market quota represented by local small and medium enterprises, especially in the hotel and restaurant sectors.

Macau’s integrated resorts was able to take its share of overall hotel revenue in Macau from 67 percent in 2008 to 81 percent in 2015, while its percentage take from the overall restaurant businesses went from 46 to 56 percent in the same period.

Fong said in order to battle the increasing share from gaming operators, the government will need to focus on promoting local dining - those outside of integrated resorts.

“We have a long history of local brands. Whenever local brands face competition from the integrated resorts the government would use public resources to help local SME’s not just survive but create new opportunities,” said Fong, speaking to MNA.

However, Fong said that overall, the increase in non-gaming offerings is good for small-to-medium businesses, especially in the retail sector.

The promotion of hundreds smaller, local brands in the retail sections of Macau’s resorts has helped the local sector grow substantially, he said, adding that the retail sector went from MOP19.4 billion (US$2.4 billion) to MOP61.5 billion between 2008 and 2015.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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