The global casino industry is booming, with Asia accounting for most of the recent growth in gaming revenues. In slightly more than a decade, Macau’s casino revenues have increased from just over two billion dollars to US$38 billion. Singapore’s casino revenues are almost at par with the established market of the Las Vegas strip in a short span of two years. Such spectacular growth in such a short time period could easily create a feeling of complacency among top management at casino companies operating in these markets. This paper is based on the premise that strong operating results of casino companies in Macau as well as Singapore have more to do with the huge pent-up demand for gambling products among Asian (mostly Chinese) customers than with astute management orientation or strategy of casino operators. But the Asian party will not go on endlessly. Faced with increasing labor shortages, and imminent competition from countries such as the Philippines, revenue and profit growth of casino companies in Macau and Singapore will inevitably slow down. In order to survive increased competition and rising macroenvironmental challenges, casino companies in both markets will need to pay attention to their long-term strategy and invest in building an appropriate organizational culture, fostering employee identification, and developing customer loyalty.
|Title of host publication||Proceedings of the 11th APacCHRIE Conference|
|Place of Publication||Macau SAR, China|
|Publisher||University of Macau|
|Number of pages||17|
|Publication status||Published - 2013|
|Event||APacCHRIE Conference: Facing the challenges, grasping the opportunities - Winning in the hospitality industry in uncertain times - Macau, Macau, SAR, China|
Duration: 21 May 2013 → 24 May 2013
Conference number: 11th
|Period||21/05/13 → 24/05/13|
Kale, S., & Spence, M. T. (2013). Does huge pent-up demand weaken attention to customer experience: Lessons from IRCS in Macau and Singapore. In K. Chon (Ed.), Proceedings of the 11th APacCHRIE Conference (pp. 1-17). Macau SAR, China: University of Macau.