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Part 2 : Macau before Covid-19 ICE365 Macau report
MACAU BEFORE COVID-19
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“ PRIOR TO COVID , Macau was definitely booming ,” says Chris Wieners of Macau-based marketing agency Hogo Digital . Wieners first arrived in the SAR in 2007 , at a time when the focus was predominantly on developing the VIP market , comprising high-value customers often transported to Macau by junket operators .
The market ’ s initial period of soaring growth peaked in 2013 at MOP360.75bn ($ 45.13bn ). A crackdown by the Chinese government then saw efforts to stamp out corruption and overspending , curtailing the growth in VIPs and the junkets that brought them to the SAR .
That led to Macau ’ s first ever yearon-year decline in gaming revenue in 2014 , with revenue down 2.6 % to MOP351.52bn . The drop widened in 2015 when revenue fell a further 34.3 % to MOP230.84bn .
CULTIVATING MASS
However , as VIP customers , and the junket operators that brought them to Macau , became more heavily regulated , mass market gaming became the focus .
“ VIP has been the focus for many years ,” Wieners says . “ However , the relationships with both player-direct and with junkets is taking a backseat to mass market share . Those VIP relationships will always be key , but it ’ s just as important for operators to focus on the development of mass and premium mass market share .
“ Not only is this a more viable , less volatile long-term strategy , but it is also going to be required in order to showcase to the government that the operators are focused on growing Macau ’ s mass market – one which will hopefully net more revenue opportunities for non-gaming amenities , including those outside of the integrated resorts themselves .”
Wieners says that the competition among operators was fiercest around the VIP segment . Secondary competition over customer management , which was split between junkets and operators managing customers directly , was also prevalent .
According to Alidad Tash of casino and resort consultancy firm 2NT8 Limited , this has now changed to a focus on “ premium mass ”.
“ These are people who you would describe as super-high rollers ; the profit
ICE365 Macau report