Mass market to make up 50 percent of gaming revenue in 2016

Revenue from the mass market will account for more than 50 percent of gaming revenue as 2016 progresses, says Bloomberg industry analysts.

“Mass market revenue has been stabilizing for a year now and was only down 4.8 percent vs VIP down 19.3 percent,” said Catherine Lim and Margaret Huang at the G2E conference in Macau, adding there was also evidence that non-gaming revenue is on the up-trend from the current 7 percent of visitor spending.

Earlier this year, SJM’s Angela Leong On Kei and Wynn Macau’s Linda Chen said they believed Macau’s gaming operators’ revenue from non-gaming business will exceed the 9 percent goal of their total income by 2020.

The comments followed from the release of Macau’s draft five-year development plan, that called for an increase in non-gaming revenue of resorts from 6.6 percent in 2014 to 9 percent by 2020.

Chen, the executive director of Wynn Macau said the operator would “definitely” achieve the goal, and added the focus for operators should be to improve the quality of their tourism services, rather than just looking at their non-gaming revenue.

In order to boost non-gaming spend, operators should consider shifting their accommodation offering and positioning, focus on more entertainment options such as live performances and theme parks, and for luxury brands to adjust product mix and pricing to “win back visitors”, said the Bloomberg duo.