Non-China VIPs key target for Asia casinos: marketers

August 24, 2022 Macau Emerging Markets Industry Updates

Acquiring VIP and premium-mass gamblers from outside China is a priority for Asia Pacific casino operators, say several industry marketing specialists spoken to by GGRAsia.

That could be a challenge particularly for Macau operators, that have spent more than a decade generating a lot of their gambling volume from high-value customers from mainland China, added one of the experts.

In pre- Covid-19 times, drawing on Chinese customers had benefitted the tourism and gambling markets not only of Macau, but also of “Singapore, the Philippines, South Korea, Cambodia and Australia”, noted Kevin Clayton in comments to GGRAsia. He has worked as a senior marketing executive for several Macau licensees, and is now integrated resort specialist for consultancy Megabrands Asia.

Since the onset of the Covid-19 pandemic, China has been exercising a zero-tolerance approach to community infection, resulting in movement controls for outbound and inbound travellers to the mainland, Macau, and Hong Kong.

The Chinese authorities have also continuously emphasised in the past few years a crackdown either on citizens travelling overseas for casino play, or being involved in online betting: referred to collectively as “cross-border gambling”. The country has amended its criminal code to outlaw anyone assisting others in such activity. It came into effect from March 1, 2021.

Commenting on other developments recently in the Macau high-roller market, and referring to how regional casinos formerly recruited players from mainland China, Mr Clayton noted: “VIP customer acquisition and financing through traditional junkets is now a thing of the past.”

He added: “A battleground in Asian markets will be Chinese and [South] Korean expats living, working and owning businesses in [the destination] market – particularly in [South] Korea and Vietnam where locals are banned from entering foreign-owned casinos.”

Jit Ng, chief marketing officer of Hoiana, a casino resort in Vietnam, said it was essential for an operator to get a “broader” clientele, and work on getting a suitable product mix for attracting them. The gaming and leisure complex, located on Vietnam’s central coast, has a foreigner-only casino and has been launching luxury hotel accommodation on a phased basis.

“Our strategy has always been about striking a balance in our customer base due to the attractiveness of Da Nang as a major tourist spot not only for Chinese, but also for [South] Koreans, Malaysians, Japanese, and Singaporeans. These markets have always been important to us, and our balanced approach have been effective in bringing in valuable customers,” the Hoiana executive said.