MACAU -- Once relying heavily on attracting high-rollers and VIP guests, Macau is looking to a new future of non-gambling amenities to fiscally revitalize the city, following three consecutive years of slumping revenue.

The annual three-day Global Gaming Expo Asia (G2E Asia) kicked off its 11th year at the Venetian Macao on Tuesday, in the largest event in the expo’s history. It has drawn more than 12,000 visitors and buyers this year, with 45 percent made up of new exhibitors.

The event’s show floor space has also expanded by more than 25 percent from last year, as Macau’s gambling industry shows signs of bouncing back. Overnight tourism numbers are bound for an increase and gambling revenues have risen for the past nine consecutive months.

“In 2016, the number of overnight trippers surpassed the number of day trippers for the first time,” said Francis Lui, vice chairman of Macau’s Galaxy Entertainment Group, at G2E’s “Asian Markets Forum” keynote address Tuesday. 

Overnight guests accounted for 51 percent of Macau’s tourism figures last year, up from 47 percent last year. It is crucial to continue the trend said Lui, as guests who stay the night spend roughly three times more money than day trippers.

Since 2014, Macau’s gambling industry has seen its revenue plummet from $44 billion to $28 billion last year. According to Lui, the sharp downfall is largely a result of the overreliance of the industry’s business on reeling in high-spenders.

Macau’s economic growth and gross gambling revenue bounced back with a vengeance between 2002 and 2013, hitting its peak of $45 billion following the global financial crisis. However, Chinese President Xi Jinping’s anti-corruption crackdown since 2014 has seen Macua’s high-rollers -- mostly officials -- disappearing.

“Such growth was clearly unsustainable. In hindsight, the business model was far too dependent on VIP consumers,” Lui said, adding that Macau must focus on a more diversified future in order to appeal to more middle-class and family visitors and remain relevant in the global tourism and gambling industry.

Similar to Las Vegas’ longtime push to shift its image from gambling and debauchery to a more family-friendly travel destination, Macau’s government has its eyes set on increasing its non-gambling development by 9 percent by 2020 and looks to eventually surpass Las Vegas’ mass market tourism attractions. Last year, Macau’s non-gambling amenities per capita reached $225 billion compared to Las Vegas’ $255 billion.

However, Lui stressed that casino executives can no longer consider Vegas its only serious competitor, noting Asian gambling markets are continuing to rise in neighboring countries, including Korea, Japan, Taiwan, Vietnam and Thailand.

Korea currently has 17 foreigner-only casinos and is looking to expand its presence in Asia’s gambling industry with the opening of East Asia’s first integrated resort, Incheon’s Paradise City, in April. The opening of the resort marks the first of a cluster of casino resorts set to be developed on Yeongjongdo, including a Caesars resort.

Industry insiders are also bracing for Japan’s future in gambling after it legalized casinos in December.

Macau is currently constructing a 42-kilometer bridge connecting Hong Kong Airport to Macau, which is set to open in 2019, and it is also to expand its gambling amenities to neighboring Hengqin Island -- three times the size of Macau.

This year’s G2E Asia also highlighted various other gambling topics, such as innovative online gambling and integrated resort operations, and featured guest speakers Paulo Martins Chan, director of Macau’s Gaming Inspection and Coordination Bureau, and Wilfred Wong, president of Sands China.

By Julie Jackson (juliejackson@heraldcorp.com)
Korea Herald Correspondent