Macau's tourism landscape is changing. Non-gaming spending is up, driven by new attractions and a shift in tourist demographics, reports Macau Business.
Macau is experiencing a shift in its tourism landscape, with non-gaming spending on the rise, according to a report by Macau Business. This change is being driven by investments in non-gaming entertainment and a subsequent change in the profile of tourists visiting the city.
Data acquired by Macau Business from the Statistics Department shows that per capita spending, excluding casino gambling, has increased significantly. The average spend now stands at MOP 2,168, a nearly 40 percent jump compared to 2019. This surge in non-gaming spending coincides with a change in visitor demographics. Macau Business, citing data provided by the Tourism Bureau (MGTO), reports an increase in younger visitors (aged 24 and below) from 14.7 percent in 2019 to 17.4 percent in the first nine months of 2024. Older visitors (aged 55 and above) also increased from 23 percent to 26.6 percent during the same period. Conversely, the proportion of visitors aged 25-54 decreased from 62.3 percent to 56 percent.
This demographic shift is linked to Macau's push for diversification, with integrated resorts investing heavily in non-gaming attractions. “Macau is actively promoting moderate economic diversification by increasing non-gambling elements," explains Matthew Liu, Professor of Marketing at the University of Macau, to Macau Business. "After the pandemic, major resorts in Macau have added a variety of diverse entertainment activities, such as concerts, conferences, exhibitions, and tourism events. This effectively attracts more young people, family guests, and middle-class tourists to Macau for tourism and consumption.”
Macau's casinos are shifting their focus from high-rolling VIP gamblers to a larger volume of casual bettors, according to several sources. Jenny Lao Phillips, Dean of the Faculty of Business and Law at the University of Saint Joseph, told Macau Business that the future of gaming gross revenue (GGR) lies in attracting more customers who make smaller bets, driven by investments in non-gaming entertainment that are changing the profile of tourists visiting Integrated Resorts.
This trend is not limited to casinos, as Patrick Lo, lecturer at Macao University of Tourism, explained to Macau Business that visitors focused on luxury spending have decreased, while younger travelers interested in local culture and activities have become more prominent, similar to trends observed in Hong Kong.
Ben Lee, Managing Partner at IGamiX Management & Consulting Ltd, confirmed this shift with data shared with Macau Business, stating that the amount of funds players bring to Macau is significantly lower than pre-pandemic levels, likely around 25-40 percent. He attributes this partly to the decline of junket operators, which has shifted the focus to the mass market, now representing over 70 percent of GGR.
While the traditional Baccarat segment has decreased considerably, the premium mass GGR, an alternative to the VIP market, has already surpassed pre-pandemic levels, suggesting a more sustainable path forward for Macau's gaming industry.
Read related article: ‘Macau Casino Outlook Tied to Chinese Economy’
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