Dr. Glenn McCartney PhD Assistant Professor in Gaming & Hospitality Management University of Macau FMBA Breakfast Meeting, 24th April 2013 Been in Macao for 15 years starting as Director of Marketing and of PR of Macao’s 2nd largest casino hotel Consulted for Waldo, Sands, StarWorld, MGM, Galaxy, and most of 2012 for The Venetian (opening of Sands Cotai Central) During Macao’s liberalisation period worked for the Macao Government on gaming and tourism research - visited and reported on Korea, LV and Atlantic City developments Sole author of 2 textbooks published by McGraw-Hill Depends if you are: A local resident working or have a company benefiting in the industry A local resident not working in the industry and limited benefits An investor of some sort (and not necessarily living in Macao, and therefore subject to its local impacts) You’re a foreigner working in Macao, getting a nice salary, and in the end will move back to your country and home You are the natural environment (but who’s really asking them?) Can’t get a taxi? Can’t afford a flat? Can’t get a seat in my local restaurant I have been going for years? Even if I did the menu has changed for the tourists and more expensive Actually the local restaurant isn’t there anymore – replaced by a jewelry or pawn shop As well as the business and environment landscape changing, values and attitudes start to change in families – money is king? Higher school drop out rate eager to join industry See more natural settings disappear or become concreted? People don’t say hello on the street anymore….. Basically its when the negative fallouts from the developments outweigh the perceived positive ones And within this lies opportunity 2001 2011 Increase (%) Employed population 205,000 328,000 60% - Manufacturing 45,000 13,000 71 (-)% - Hotel, retail 44,000 78,000 77% - Gaming 18,000 70,000 288% - Domestic 5,000 17,000 240% Earnings 4,700 10,000 112% - Hotel, restaurant 4,000 7,800 95% - Public utilities 10,000 17,500 75% - Education 8,700 15,000 72% - Gaming n/a 13,700 - Health, social welfare 9,900 12,000 21% 53 (82) 115 (110) 54% 62 143 130% Rice (CPI) Fish 2001 2011 Increase (%) Marriages 1,222 3,545 190% Divorces 348 988 183% - Macao 310 355 15% - Taipa 3 21 600% - Beds 1,091 1,414 29% Life expectancy 79 yrs 82 yrs 4% University students 8,358 24,156 189% Crime 8,900 12,512 40% - Assault 1,310 1,729 32% - Against public authority 324 710 119% Court caseload - pending 5,278 11,437 116% Court caseload - filed 9,495 16,747 76% Private Clinics 2001 2011 Increase (%) Motor vehicles 115,000 206,000 79% Motorbikes 58,300 110,000 100% Traffic accidents 9,800 14,100 44% 158 billion mins 350 billion mins 122% - Philippines 3.2 15.3 378% - Australia 2.4 1.9 21(-)% - UK 3.1 2.0 35(-)% - France 0.3 0.2 33(-)% Phonecalls outgoing Depends if private or public sector: Degree of collaboration between the gaming industry and the Macao Government Organisational cultures and leadership styles – both in the gaming industry and Government Government capacity and capability Onus on the gaming industry to satisfy revenue and investor interest today (short term/long term focus) Weakness in intellectual capital – an attribute of an international city is its intellectual capability No tourism master plan – meaning quick fixes not long term strategy planning. Merely papering cracks to date. We don’t know what to fix as limited scientific research on major issues relating to tourism and hospitality. Occasional reports on wealth gaps, satisfaction index – but given that this industry is over 80% of GDP it is not enough. Questions? glenn@insightsunlimited.com