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The impact of declining gaming revenue in the hospitality industry in Macao
Date Issued
2016
Author(s)
Choi, Mei Chan
Abstract
Macao’s gaming revenue is undergoing decline since Jun 2014. Until December 2015, gaming revenue has recorded decline for 19 consecutive months (DSEC, 2015). Macao is well known as gambling city and it is the major factor attracting tourists every years. With facing the difficulties, how to diversify Macao’s tourism, increase its non-gaming attractions and improve the existing tourism infrastructure becomes the priority topic in the society.
Hotel sector is one of important part in Macao’s tourism industry. But Macao’s hospitality industry is high dependence on Gaming industry, which is considered not sustainable and healthy for the industry. Along with gaming revenue decline, is the industry facing any other problem or difficulties? This research intends to investigate this pressing trend, as well as attempt to better understand what factors influence the customers’ travel decisions. The overall purpose of this research is to, hopefully, better understand how the hospitality industry is shifting from its high dependence on gaming industry to developing its own self-attractions.
This research analysis the factors that influence the customers’ travel decision. It contends that promotion and discount is the most effective way to attract the customers, but argues that the strategy is not enough among the intense competition in the hoteling industry. Providing good service is the key for the customers’ revisit decision and changing the first come guests to loyalty guests. Otherwise, the researcher attempts to compare all attractive elements in the Resort-Hotel, and attempts to provide potential business directions to hotel operators. Combining all findings from an online survey and semi-structured interviews, this research concludes with a series of recommendations. It is expected that such recommendations may provide some business development directions to hotel operations. In addition, such recommendations may be useful as a reference by Macao Government for tourist attractions planning.
Hotel sector is one of important part in Macao’s tourism industry. But Macao’s hospitality industry is high dependence on Gaming industry, which is considered not sustainable and healthy for the industry. Along with gaming revenue decline, is the industry facing any other problem or difficulties? This research intends to investigate this pressing trend, as well as attempt to better understand what factors influence the customers’ travel decisions. The overall purpose of this research is to, hopefully, better understand how the hospitality industry is shifting from its high dependence on gaming industry to developing its own self-attractions.
This research analysis the factors that influence the customers’ travel decision. It contends that promotion and discount is the most effective way to attract the customers, but argues that the strategy is not enough among the intense competition in the hoteling industry. Providing good service is the key for the customers’ revisit decision and changing the first come guests to loyalty guests. Otherwise, the researcher attempts to compare all attractive elements in the Resort-Hotel, and attempts to provide potential business directions to hotel operators. Combining all findings from an online survey and semi-structured interviews, this research concludes with a series of recommendations. It is expected that such recommendations may provide some business development directions to hotel operations. In addition, such recommendations may be useful as a reference by Macao Government for tourist attractions planning.
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M-BA 2016 CHO,MEI.pdf
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