A Study on Gaming Industrial Cluster in Macao. Kendrew, K.C. UN Macao Polytechnic Institute 7/3/2008
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1 A Study on Gaming Industrial Cluster in Macao Kendrew, K.C. UN Macao Polytechnic Institute 7/3/2008
2 Concept of Industrial Cluster Groups of enterprises with strong vertical linkages and located within one country, but not always geographically (Porter, 1990) Clusters are geographic concentrations of interconnected companies and institutions in a particular filed( Porter, 1998)
3 Literature Review Clusters have received increasing attention in research on advanced countries, especially in * Some lines of New Mainstream Economics (Krugman, 1991) * Business Economics (Porter, 1990) * Regional Science (Scott, 1996) * Innovation Studies (Braczyk, Cooke and Heidenreich, 1998).
4 Literature Review (Cont.) Industrial clustering in developing countries is significant. The growing amount of case material shows that clusters are common in a wide range of countries and sectors ---Nadvi and Schmitz, 1994
5 Literature Review (Cont.) Introduced to the traditional industry Introduced to the service industry Introduced to the tourism industry Introduced to the gambling industry
6 History of Macao Gaming Industry
7 Early Development of the Macao Gaming Industry 1847 The first time of legalization gaming 1930 The monopoly concession for operating all forms of approved casino games 1937 The casino monopoly concession 1961 Permanent Gaming Region a Low Taxation Region and Regarded Gaming and Tourism as its Major Economic Activities
8 Monopoly System in Gaming Industry STDM was granted her gaming license in STDM had been the only firm operating casino business in Macao for 40 years.
9 Gaming Liberalization after the Handover Feb., Dec., 2002 Apr., 2005 Sep., 2006: Sociedade de Jogos de Macau ("SJM"), Galaxy Casino, S.A. ("Galaxy"), and Wynn Resorts (Macao) S.A. ("Wynn") had granted the concession Galaxy had a sub-concession relationship with Venetians Macao S.A. ("Venetian") SJM signed a sub-concession with the MGM Grand Paradise, S.A. ("MGM") Wynn signed a sub-concession with the Melco PBL Jogos (Macau), S.A. ("Melco PBL")
10 THE SANDS
11 Gross revenue from different gaming activities in 2007 Unit: MOP million Item Gross Revenue Percentage Games of Fortune 83, % Greyhound Racing % Horse Racing % Chinese Lottery % Instant Lottery % Sports Lottery - Football % Sports Lottery - Basketball % 1 USD= 8 MOP 83,802.02
12 CASINO IN MACAO, 2007 No. of Casinos : 28 Gaming Tables : 4,375 Slot Machines : 13,267
13 The Situation of Macao Gaming Industrial Cluster
14 MACAO Peninsula: 8.8 km 2 (a) Taipa: 6.5 km 2 (b) Coloane: 7.6 km 2 (c) a+b+c: 28.6 km 2
15 A Spatial Agglomeration of Macao Gaming Industrial Cluster ZAPE, Macao Peninsula Cotai Strip, Taipa
16 ZAPE, Macao Peninsula 1. Lisboa 2.Kam Pek 3. Fortuna 4. Diamante 5. Club VIP Legend 6. Kingsway 7. Waldo 8. Golden Dragon 9. Casa Real 10. Jai Alai 11. Macau Palace (closed) 12. Sands 13. Oriental 14. Emperor Palace15. Rio 16. Star World 17. Wynn 18. MGM Grand Paradise 19. President 20. Babylon 21. Grand Lisboa
17 Casinos in ZAPE Wynn Star World Grand Lisboa MGM Grand Paradise Opening Date Sep. 6, 2006 Oct. 19, 2006 Feb.11, 2007 Dec.18, 2007 Gaming Tables Slot Machines 1, Hotel Rooms Source: Hong Kong Economic Times, January, 8, A8.
18 Gaming Industrial Cluster in ZAPE No. Percentage in Macao Concessionary 5 83% Casino 20 71% Five Star Hotel 6 40% Four Star Hotel 7 58% Pawnbroking 20 90% Catering Trade &Other Entertainments >100
19 Cotai Strip, Taipa 1. Marina 2. MJC 3. Taipa 4. New Century 5. Grand Waldo 6. Crown 7. Galaxy Resort 8. Venetian Resort
20 The Planed Cotai Strip Sands 7 resort hotels 20,000 hotel rooms Over 1.5 mm sq ft of casino space Over 3.0 mm sq ft of MICE space 25,000 seats for live entertainment 3.0 mm sq ft of retail space Over 4.0 mm sq ft of vacation suites Melco-PBL City of Dreams Macau Studio City (Melco-PBL will not own this but will manage the casino) Galaxy Grand Waldo Hotel Cotai Mega Resort (aka GalaxyWorld Resort). Wynn Owns land on Cotai and has stated that they plan to build one casino resort that will be "the most beautiful hotel on earth".
21 An Industrial Aggregation
22 The Characteristics of Macao Gaming Industrial Cluster
23 The Characteristics of Macao Gaming Industrial Cluster Spatial Aggregation
24 The Characteristics of Macao Gaming Industrial Cluster (Cont.) Competition and Cooperation
25 The Characteristics of Macao Gaming Industrial Cluster (Cont.) Externality
26 The Impact Factors of Macao Gaming Industrial Cluster
27 The Impact Factors of Macao Gaming Industrial Cluster Gaming Licence
28 The Impact Factors of Macao Gaming Industrial Cluster (Cont.) Location The geographical features of Macao Distance Facilitated
29 The Impact Factors of Macao Gaming Industrial Cluster (Cont.) Policy
30 Government Role in Macao Gaming Industrial Cluster
31 Government Role in Macao Gaming Industrial Cluster How to develop the advantage of location
32 Government Role in Macao Gaming Industrial Cluster (Cont.) Planning for a promotion on Macao Gaming Industrial Cluster
33 Government Role in Macao Gaming Industrial Cluster (Cont.) Promote more effective policies to enhance the Macao Gaming Industrial Cluster
34 Conclusion
35 Conclusion Characteristics * Spatial Agglomeration * Competition and Cooperation * Externality
36 Conclusion (Cont.) Impact Factors * Gaming Licence * Location * Policy
37 Limitation Lack of Quantitative Analysis Lack of Comparison of Macao and Other Gaming Destinations
38 Thank you for your attention
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