Premium mass to drive Macau growth, market diversity

    An increasing focus on the premium mass market is likely to fuel a more consistent growth rate in Macau and will provide the impetus for casinos to diversify their attractions as the customer base expands, according to executives speaking at G2E Asia in Macau. The market has already seen a significant shift with the share of VIP Baccarat as a total of gaming dropping to just over 63 percent last year, compared with its peak a few years ago. While the revenue stream from the mass market is not as high, the sector is three times more profitable. MGM China Holdings CEO Grant Bowie said the company had always been focused on the mass market, while the sudden spike in VIP revenue that generated headlines had taken most by surprise. “No one expected VIP to take off like that,” he said. “We will still pick those apples but we are sowing the seeds for the mass market,” he said. Gamal Aziz, president of Wynn Macau, said the profile of visitors to Macau is changing. He said the new mass premium market tends to consist of business owners, younger than the current clientele and not reliant on junket operators, or the casino for credit. He said there are potentially millions of clients with a similar profile who are likely to visit in coming years.