Strategic Destination Management in the Face of Foreign Competition: The Case of Macao SAR

ABSTRACT

This study illustrates that the gaming market is underutilized in mainland China, and legalizing casino gambling is strategically helpful in mitigating the problem of market underutilization and preventing a mass exodus of capital to foreign gaming establishments. An analytic model is constructed to analyze and predict the possible consequences of such a prospective policy for a major gaming destination: Macao. To maintain its economic prosperity, Macao is advised to upgrade its gaming facilities and service levels, and to promote itself as a world-class gambling destination. In the long term, it must widen its clientele base and diversify its economy.

KEYWORDS:

• Capital outflows
• gaming legalization
• market underutilization
• economic diversification

Additional information

Notes on contributors

Li Sheng

Li Sheng is Professor, Macao Polytechnic Institute, Edif. Kind Light Garden, Rua de Chiu Chau, No. 48-52, Taipa, Macao SAR (E-mail: [email protected]).

Weibing Zhao

Weibing Zhao is Assistant Professor, Institute for Tourism Studies, Colina de Mong-Há, Macao, SAR (E-mail: [email protected]).