Macau, reinvented

The island of gaming wants to rebrand itself as a well-rounded entertainment hub. But in a city that’s so stereotypically known for gambling, Joyce Yip looks at whether its efforts can be successful.

Last month, Macau Legend Development – the operators of Macau Landmark hotel and Macau Fisherman’s Wharf entertainment complex on the Macau Peninsula – started a roadshow in Hong Kong for an initial public offering to become the first new casino listing after MGM China Holdings went public in 2011.

Outside of the books, the island’s prosperity is not hard to see; however, having cut the ribbons of two substantial entertainment-gaming resort complexes in the past three years, the world’s largest gambling market is undoubtedly trying to clean up the hedonistic imageries of smoke-clouded gambling tables as a well-rounded hub that’s suitable for families, shoppers and even children. But in a city that’s so stuck in the gambling stereotype, how can hoteliers find a new light?

Unlike the casinos we’re so used to in Macau city centre – such as MGM and Lisboa – the more spacious Taipa side has been pumping out a series of casino-resorts that open up a menu of non-gaming activities.

These include the Galaxy Macau, which boasts a raised-wave pool, a high-end whisky bar and a night-time laser show; City of Dreams, which hosts Cirque du Soleil’s House of Dancing Water as well as a nightclub that often features celebrity DJs or internationally acclaimed parties;
the Cotai Strip, which houses a slew of international brands in both the Venetian and Four Seasons complex; and the recently debuted Sands Cotai, a conglomerate of Conrad Hotel, Sheraton Hotel and Holiday Inn.

Regular events held in the area include pop-up shows, movie premiers, showcase fights and big name concerts, including Justin Bieber and Rihanna.

Despite all the non-gaming facilities already in the market, Galaxy Macau’s vice-president in hotel operations Paul Town says his biggest challenge is still to cut through the stereotypes of gambling with the notion of “total destination”.

“The Macau market is getting more and more sophisticated in terms of appreciating entertainment past gaming,” he said, adding his marketing strategy is to build an emotional bridge between the tourist and the experiences the resort can offer.

Such is a microfilm launched late last year featuring two star-crossed lovers who met in Macau to find their destiny. The online movie wove in scenes from the island’s historical sites along with the interior of the resort. Aside from Facebook activation, the resort also leverages on the network of online travel agencies.

My job is to drive demand to the resort; and it’s only with great product that enables great experiences. We’re constantly evolving: as in, if you haven’t been to Macau recently, you haven’t been here at all

Brendon Elliott – vice president of sales and resort marketing at Venetian Macau

But with a 13.5% year-on-year growth in monthly gross gaming revenue in May alone to measure 29.6 billion pataca, it’s difficult to justify any investments that are not made to market the velvet and felt tables. According The Wall Street Journal, Galaxy Entertainment Group even saw first-quarter earnings (before interests, taxes, depreciation and amortization) rose 29% over the previous year, fuelled mainly by wins from mass-market gamblers.

One solution may lie with animated personalities Kung Fu Panda, Shrek and Alex the lion from Madagascar, says Brendon Elliot, vice-president
of sales and resort marketing at Venetian Macau. Elliot just opened the doors to the latest DreamWorks Experience in the Cotai Strip Resorts to bring themed parades, unique F&B offerings (“Shrekfast” to replace breakfast, for example), meet-and-greet with the characters in costume, a DreamWorks-themed Ice World in the fourth quarter as well as special room packages.

“This partnership with DreamWorks is the single largest venture aside from creating the resort itself, and we’re proud to say it’s not just family-oriented, but it’ll even speak to children,” Elliot says. “These are larger-than-life personalities, and these are the kind of experiences and products we want to offer because not everyone can afford to go to Universal Studios, just like there are people who go to The Venetian and can’t afford to go to Venice.”

Partnerships, however, are not foreign to the Cotai Strip. Elliot brought in Carnevale in 2011 when he invited dancers from Rio de Janeiro to march through the resort in a three-day mardi gras event; carnivals from New Orleans and Venice were brought in the following years.

The tipping point into entering the substantial venture with DreamWorks, however, sparked during last year’s Winter in Venice event, when one character in the parade, the Gingerbread Man, unexpectedly went viral. In response, Elliot and his team made the man in the costume perform
everyday stunts such as getting on a bus, crossing the road or finding his way between the Sands and Cotai resorts to get more attention on social media.

“The engagement and interaction with the Gingerbread Man, was really unexpected. The Gingerbread Man, was originally just one character in the parade; but in just days of witnessing the viral effect, we knew it had to be bigger,” he says. “This is the interaction we need: this diversification of entertainment that goes past non-gaming and is passed through people’s personal networks. The DreamWorks Experience is perfect for that.”

Though Elliot admitted Macau’s gaming to non-gaming entertainment revenue is about 85:15 and would take a long time to reach Las Vegas’s 50:50, the new audience of families and booming growth in non-gaming projects in the city are living proof that his strategy is working.

“My job is to drive demand to the resort; and it’s only with great product that enables great experiences. We’re constantly evolving: as in, if you
haven’t been to Macau recently, you haven’t been here at all.”

Town agrees, adding though gaming is the bread and butter of the resort, it can never work by itself.

“In today’s Macau, you can’t put a gaming fort here and expect it to grow on its own without any supporting services,” he says. “These non-gaming facilities are seen as a part of the experience: someone in the casino will need to eat; they want a nice time when they’re done with the tables, or their family will want a nice time. So, in a way, we are integral elements to the financial bulk.”