As Macau moves toward its 2022 re-tendering process for its six IR concessionaires, “stability” will likely the watchword for the government policy, according to the analysis of Glenn McCartney, associate professor of international IR management at the University of Macau.
While no one yet knows the specific criteria or even the precise timing for the re-tendering process, McCartney believes that a focus of stability, including preserving Macau’s social and public security gains over the past two decades, will be foremost in the policymakers’ minds.
Diversification will be an important part of ensuring stability, McCartney says, observing that tax revenue from the gaming sector has been providing about 85% of all Macau tax revenues in recent years, and that tourism from mainland China has been accounting for almost 70% of visitation.
Rather than simply generating tourism, Macau needs a clearer focus on tourism management, improving branding and the overall quality of the experience.
He noted that some other nations in region, especially Japan, have been witnessing a much faster rate of growth in the tourism sector, and this is connected to their diversified (i.e. non-gaming) attractions.