Macau is strategically leveraging the burgeoning concert economy to fuel revenue growth and diversify its tourism offerings under the (relatively) new 10-year gaming concessions.
The success of recent entertainment events in driving significant foot traffic, hotel bookings, and restaurant spending has underscored the potential of this sector.
Speaking to the media on the sidelines of the recent Asian IR Summit in Macau, Jeffrey Jiang, Senior Vice President of Entertainment Services for Galaxy Entertainment Group, highlighted the positive impact of concerts.
He pointed to the example of the popular Chinese boy band Teens in Times, whose 2023 concert in a Galaxy venue attracted a young fanbase. While seemingly paradoxical given Galaxy’s focus on premium mass gaming, Jiang explained the underlying synergy: “The parents of these top-tier Chinese artists’ fans are our main target for gaming. In this way, the concerts serve as a crucial revenue driver.”
Macau’s gaming operators are actively capitalizing on this trend to broaden their revenue streams. However, challenges remain in fully realizing this potential. These hurdles primarily involve the limited size of existing venues and the demanding schedules of top-tier international artists.
Addressing the competition for outside acts, Jiang stated, “International artists have always been a key direction for our efforts. A significant portion of international artists make their city or country selections when planning their entire Asian tour. Therefore, we communicate not only with mainland Chinese cities and Hong Kong but also with international promoters. Of course, they might also consider neighboring countries like India, Japan, and Korea. Sometimes, the final decision rests with the international artist themselves.”
He further elaborated on Macau’s current standing, noting “Macau’s recognition among many international artists is not yet as high as Hong Kong or Shanghai, which have established themselves as financial centers with years of international standing.”
Another significant obstacle is the preference of many major international artists for stadium-sized venues for their Asian tours, citing examples like Taylor Swift, Travis Scott, and Lady Gaga.
Jiang acknowledged this limitation: “Currently, Macau, while the government has developed an outdoor performance area, it is still in a trial operation phase and not yet equipped to host shows with capacities of 50,000 people or more. I believe that in the future, the government will gradually improve the outdoor venues to meet the needs of global international artists requiring capacities of 40,000 to 50,000 or more.”
The executive expressed optimism for the future, adding, “As Macau’s position and reputation in the global performance landscape grows, along with the availability of diverse venues, I believe more and more international artists will come. This year, we have already hosted Green Day, a top global punk band, and Andrea Bocelli, a leading figure in classical music.”
Jiang also noted the long lead times involved in securing international acts: “International artists often plan their Asian tours one to two years in advance. Galaxy Arena only opened in 2023, so there is naturally a time lag.”
Melco’s niche approach
During a panel session titled “Enhancing Macau’s position as a regional and global sportainment hub,” at the Asian IR Summit, Galaxy highlighted its large-scale concerts in driving mass traffic and gaming revenue from parents of fans.
Meanwhile, Melco Resorts & Entertainment has adopted a slightly different strategy, focusing on smaller, more exclusive events. Kevin Benning, Senior Vice President and Studio City General Manager at Melco, explained during the Asian IR Summit panel that their approach is tailored to the Studio City Event Center’s more intimate capacity.
Benning highlighted the importance of understanding what makes sense for their specific venue: “We’re 4,000 to 5,000 seats, so much smaller than what Galaxy has. So we need to get a little more creative at times to find the right sports and entertainment that fits our footprint and can meet all of our needs. That’s where you’ve seen a little more unique events at Studio City compared to some of the other places.”
He provided examples of their creative approach: “Recently, we brought FISE, the Battle of the Champions, street skating to Macau. It was successful because there were multiple teams from Japan that were very well known with huge followings. There were also Spanish and Taiwanese teams with huge followings, as well as groups from Korea. Even with only 4,000 seats, we figured out how to bring in the right teams and the right events that can excite the market to come and visit.”
Addressing overlapping concerns
The burgeoning concert and event economy in Macau presents both opportunities and challenges, particularly concerning the potential for scheduling overlaps that could strain infrastructure and resources. Operators acknowledged the issue of simultaneous events, often concentrated on weekends, which can pressure transportation networks and cause hotel demand to skyrocket within short periods.
Jeffrey Jiang of Galaxy Entertainment noted the capacity limitations and the fact that a significant portion of hotel rooms are typically reserved for gaming patrons, potentially leaving leisure visitors underserved. In this context, Jiang emphasized the potential of Hengqin’s hotel inventory to complement Macau’s, suggesting it could cater to the needs of non-gaming tourists rather than acting as a direct competitor.
“Hengqin can act as a buffer to kind of withdraw or to share the resources with Macau; that could be a future opportunity,” stated Jiang.
Michael Jensen, Senior Vice President, Strategic Optimization at Wynn Macau, Wynn Palace, strongly advocated for greater collaboration among operators to optimize the event calendar and mitigate scheduling conflicts. “How collectively as operators can we bring that to the market without sort of having everything on the same weekend is a correct point, because it just closes the system,” Jensen asserted.
The executive stressed that a more coordinated approach would benefit Macau as a destination by attracting the right audiences for the right events at appropriate times.
Echoing this, Jiang pointed out the two distinct scheduling realities: the fixed itineraries of touring international artists and the greater flexibility for operator-owned or hosted events. While acknowledging the difficulty in altering established tour dates, Jiang suggested that increased communication among operators could help avoid overlaps for events under their control.
Addressing transportation pressures and the potential of leveraging Hengqin for Macau’s event landscape, Kevin Benning of Melco noted that, on one hand, connectivity between Macau and Hengqin has significantly improved following the launch of the light rapid transit. On the other hand, he raised concerns about the practical challenges of efficiently moving thousands of people across the border within short time frames.
He emphasized that the border crossing process still needs to become smoother.
Overall, Macau continues to provide many advantages, but overcoming some short-term issues could significantly boost relevance and continuity, providing a significant entertainment diaspora for its visitors.
