Marketing to the masses

Galaxy Entertainment added to its range of non-gaming attractions in June, opening Macau’s first Apple Store, as operators seek to appeal to a broader market to replace the shrunken VIP sector. Macau now gets around 45 percent of its revenue from the mass sector, up from the low point of 26 percent in 2Q11. Although the mass sector has significantly higher margins than the VIP at 25 percent to 55 percent compared with 10 percent, for most, that shift is still not yet showing through in the bottom line. Operators face the challenge of product differentiation, as well as competing with other entertainment options and the growing number of casinos opening in other Asian destinations. In China, for example, the opening of Shanghai Disneyland is expected to have a negative impact on the frequency of visits to Macau, with the two sharing very similar spending per capita amongst visitors. The issue is not just...

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