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Part 2 : Macau before Covid-19 ICE365 Macau report
time in 2019 , making up 46.4 % of the full-year total .
In 2019 , gross revenue from mass-market table gaming amounted to MOP141.53bn , with a further MOP15.14bn coming from slot machines , comprising 48.4 % and 5.2 % of gross gaming , respectively .
Essentially , things were “ humming along nicely ,” says Tash . “ Mass was growing , there was a slight decline in VIP , though this was more than covered by the growth in mass gaming , so life was great . Macau was looking great .”
HOME ADVANTAGE
Key to this is the fact that Macau is built for the Chinese consumer – Tash goes as far as arguing that it is “ the only place where the Chinese feel at home ”.
“ They can speak Mandarin or Cantonese ; they have the local food , everything is tailored to them ,” he says .
“ Because of that , and because of Chinese peoples ’ propensity to gamble , you have 1.4 billion people who love gambling , compared to
Las Vegas , where people are not as fanatical about it . If you recall , in 2013 , Macau ’ s revenue peaked at $ 45bn , compared to Las Vegas ’ peak of $ 6.8bn in 2007 .”
Macau , after all , was “ built to accommodate the sheer size of the Chinese gaming and tourism market ,” Wieners adds .
This is reflected in visitor numbers , explains Annie Siara of 86 Connects , a consultancy that helps retail , hospitality and travel brands enter the Chinese market . She points to figures from the Macau Government ’ s Tourism Office , which show 39.4 million tourists came to the SAR in 2019 . Of this number , 70 % came from mainland China .
Its location is also an asset ; it neighbours Guandong province , China ’ s most populous with 126 million residents .
“ The requirement for a wide range of gaming and entertainment offerings has allowed Macau ’ s various development styles to succeed ,” Wieners says . “ The new and exciting attractions of the Cotai area have generated interest from a wide range of customer demographics , while the grind customers who are looking for a quick gaming fix can still find enjoyment on the Macau peninsula .
“ Having been in Macau in 2007 , when the Venetian was the only player in Cotai , there ’ s just been such a demand for the Macau market from Guangdong , and from the Macau Gaming and Tourism Office doing a lot of roadshows in cities that are further afield .”
Wieners says this has not shown any sign of cannibalising revenue from the peninsula , in spite of Cotai ’ s market share growing significantly .
“ You ’ ve got a lot of mass market customers that don ’ t need the bright lights of Cotai . Those looking to get to the seat as soon as they get off the ferry . It ’ s still a premium product , it ’ s just not on the scale of Cotai .”
But that mass market appeal is predicated on inbound tourism from the Chinese mainland . And that was cut off , on 4 February last year .
ICE365 Macau report