Macau’s Integrated Resort (IR) industry may need additional work on the regulatory framework that underpins it, estimate local experts. In order for the country to experience a sustained growth, a greater cooperation between public and private sectors is needed.
Macau’s IR Industry – A Common Future
Macau would need greater endorsement by both the public and private sectors if its Integrated Resort (IR) industry is to be successful, estimates Associate Dean of the Faculty of Business Administration at the University of Macau, Professor Glenn McCartney.
A long-time observer of the industry, McCartney has pointed out, speaking to Inside Asian Gaming, that the bevy of regulations that has hit the industry in recent years has not been successful in one crucial aspect – achieving a more diversified portfolio, driving new investment, but also bringing a fresh crop of gamers.
In order for this to change, McCartney estimated, more partnerships between private and public sector entities should take place. He also commented on the gambling licenses that have been issued in the past 15 years, arguing that the government could use the knowledge of that practice and identify the progress as well as take note of the missing elements.
Macau seems well-poised to benefit from a practice whereby its private institutions are tying up partnerships with representatives of the IR industry. The University of Macau offers a Master’s Program in Integrated Resort Management, making full use of the fact that the institution is located in the close vicinity of the world’s largest concentration of IR brands.
Of course, the present boon in the operations of Macau casinos has not always been the case. Prior to 2016, the entire industry was slammed with ham-fisted restrictions which killed any innovative vibe. It was only in mid-2016 when we saw the IR sector make a marked push towards recovery.
Benefitting from Academia
The second edition of the Mastering Cotai Seminar featured a number of participants who had come to seek insight into the future of the industry. Students from the University of Macau also presented their research paper exemplifying the benefits from embracing both private and public sectors in seeking better prospects for everyone.
The building blocks of the Macau gambling industry have been identified as those sorts of rare partnerships that do occur between entities of both ends of the spectrum.
And while government has not been exactly enthusiastic, watching out for sanctions from mainland China, the University of Macau and McCartney have been pushing ahead with their plan to point out to the evident advantages of endorsing the IR sector, and more specifically – help it innovate via diversification.
The sector is definitely not lagging when it comes to opportunities for growth, with Macau’s properties still having a lot of sustainable expansion to do. However, instead of seeking to go it alone, they can benefit immensely from the interest of universities and the like further down the road.
With the analyses that comes from public institutions, brand names can only benefit in developing their business strategies. The good news is that they have all decided to sit up and listen what the students from the University of Macau have to say.