The CAT (Casino Tourism) and the MICE (Meetings, Incentives, Conventions, Exhibitions): Key Development Considerations for the Convention and Exhibition Industry in Macao

ABSTRACT

In 2006, Macao became the world's leading gaming destination in terms of gaming revenue and by mid 2008 had surpassed the gaming revenues of Las Vegas and Atlantic City combined. Casino tourism (CAT) in Macao continues to grow, but with the opening of The Venetian, the first integrated resort on the Cotai Strip, ¹ convention and exhibition-based tourism is beginning to emerge. Due to its lure of being a high-yield tourism sector, MICE (meetings, incentives, conventions, exhibitions) tourism has been increasingly introduced at destinations, including gaming jurisdictions such as Las Vegas. Yet, Macao's gaming industry for the greater part remains divorced from the need for a convention product in terms of revenue creation at present, with two models of gaming development emerging. It is a key aim of the Macao Government to develop Macao into a major leisure and entertainment center, widening and expanding its tourism market segment beyond gaming. The MICE sector has therefore become an increasingly important focus and direction of resources for the Macao Government. Macao, though, is faced with the challenge of changing traveler perceptions of the destination from being solely a gaming destination to that of additionally being an attractive convention and exhibition destination image. Macao is also entering a regional market with mature and leading MICE destinations. This article examines strategic planning and management considerations for Macao as it attempts to reposition itself to develop the MICE industry in the world's most lucrative gaming market. Highlighted are the challenges in re-branding and repositioning Macao, economic justification, and tourism policy considerations on issues such as infrastructure development to support this vision of the Macao Government and those of the newly integrated resorts emerging on Macao's Cotai Strip.

Keywords:

• Casino tourism
• MICE tourism
• destination image
• tourism planning

INTRODUCTION

It has been cited that within tourism, meetings and conventions are one of the fastest growing segments (Weber & Ladkin, 2003; Oppermann, 1996; Oppermann & Chon, 1997). Several reasons are given, with the main reasons being the economic benefits for the destination and community as well as improving image (Opperman, 1996). The principal assertion given for building convention centers is the economic impact of delegates spending more, staying longer, and not solely spending on hotel and restaurants but on leisure activities such as retail, events, and visits to local attractions such as museums and theaters (Clark, 2004). Economic impact and the value of conventions has often been a main thrust of research as fiscal issues are often more tangible and easier to trace than destination attractiveness and regional development (Mackellar, 2006).

Morgan and Condliffe (2006) caution that an economic study by itself may only provide a limited overview of the economic benefits of a convention to the area and should be examined within the context of noneconomic factors such as social, environmental, cultural, and destination image impacts. This convention boom lacks empirical support with Lee and Lee (2006), noting in their discussion of the feasibility of convention and exhibition center development that this has “been based on voluminous feasibility and market studies and abundant political rhetoric about economic impact and community services. However, some development projects seem to be based on too optimistic feasibility studies and upward growth forecasts for the future C&E [Conventions and Exhibitions] market’ (p. 112). Clark (2006) also warns of an amenity “creeping commitment” by cities developing the convention industry in a similar manner as the hotel industry in providing a list of amenities such as pools, customer loyalty programs, and in-room amenities. With the convention industry, this focus would be on facilities such as pedestrian bridges, underwriting entertainment events, and other features to attract conventions.

The MICE industry now spans the globe with increasing competition from established and emerging markets, which has given greater need to address and consolidate several strategic issues to remain competitive (Weber & Ladkin, 2003). Factors highlighted were marketing, infrastructure, human resource management, and service quality issues. Sanders (2004) researched and presented several myths within conventions in American cities, underscoring that, while there was an image of growth in conventions and exhibitions that spurred the creation of even greater convention space, there has been, in effect, no growth, and that more space did not create more business. Cities, though, continue to promote convention growth as an economic development certainty. There has, however, been a lack of empirical research conducted on the performance of convention centers over time. With the increasing use of incentives by discounting and complimentary facilities, with traditional marketing approaches having less appeal, this has put convention facilities and CVBs (Convention and Visitor Bureaus) under greater scrutiny (Sanders, 2004).

Greater onus, therefore, has been placed on the planning and management for MICE development being integrated within an overall strategic tourism roadmap. Priporas (2005) proposes several initiatives in marketing and developing the city of Thessaloniki as a MICE destination, some of which could be applied to locations in general wishing to enhance or introduce a convention product. These include creating a development plan and image of the city incorporating rich cultural history, having a specific promotional program, service quality training for those in tourism, and modernizing or introducing infrastructure and transportation facilities to effectively support this development. An example of a global strategic MICE initiative is The Best Cities Global Alliance, which is the “world's first and only convention bureau alliance with eight partners in five continents” (Best Cities Global Alliance, 2008). It is a strategic CVB alliance and network of eight cities unified with the objective of providing higher standards of service to potential clients. Through the aim of distinguishing themselves on service quality attributes, it is acknowledged that, in the end, clients will choose a destination that best fits their needs. The Alliance has members across the globe, including Singapore as an Asian partner.

In 2006, Macao became the world's leading gaming destination in terms of gaming revenue (Macau Business, 2008a), recording 22 million visitors in that year (Macao Statistics and Census Service, 2008a). By the first quarter of 2008, revenues from the gaming industry had reached US$3.72 billion, exceeding the Las Vegas Strip and Atlantic City combined (Destination Macau, 2008). Increasing over the years, by the end of 2006, taxation from gaming revenues represented almost 80% of Macao's public revenue (Macao Statistics and Census Service, 2008b). There has been a global rush by tourism destinations to embrace and commit resources to the MICE industry with the perception that, to be successful, a MICE market must be a feature of the travel market mix. This is not the case for Macao given the increasing revenues generated solely by the gaming market. Historically, and until the liberalization of Macao's casino industry in 2001, Macao's image received negative media coverage on account of criminal underworld dealings and vice (McCartney & Kong, 2003). This is an image that Macao wishes to discard through the objectives of casino liberalization and tourism policy, with the MICE tourism seen as a market to reposition Macao as a high-quality entertainment and leisure destination. This article discusses the key challenges as Macao looks to change its tourism destination image perceptions in the region, being a relatively new entrant to the MICE market, with neighboring mature players such as Hong Kong and Singapore. Macao's rapid development since casino liberalization has seen the opening of Wynn, Galaxy StarWorld, MGM Grand, Crown, and the first integrated resort on the Cotai Strip, The Venetian. This has given greater burden to an infrastructure (from physical to human resource needs) that has not kept pace with this vision of a quality leisure destination as well as the requirements of the MICE industry to achieve an effective foothold. Given similarities such as resolving organized crime issues, changing image perceptions, and development of an entertainment capital, many have looked to Las Vegas as a model to follow in Macao.

Historically, gaming and MICE tourism have not been compatible. Casinos have targeted the leisure tourist motivated primarily on gambling, inexpensive dining, and a complimentary (“comp”) system of rooms and accommodation, a contrary position of the business traveler who may not be particularly price conscious (Fenich & Hashimoto, 2004). In their discussion of Las Vegas, which successfully developed into a MICE destination, with Atlantic City primarily a leisure tourism destination, Fenich and Hashimoto (2004) highlight that the image of Las Vegas being connected to organized crime had been one that did not attract business people. The focus of success was on generating revenues from the gaming floor, with items such as hotel rooms not considered profit centers but part of the comp system. “There were many stories about conventioneers arriving in Las Vegas only to find that the casino had arbitrarily canceled their room reservations because regular gamblers had shown up at the last minute” (Fenich & Hashimoto, 2004, p. 66). They go on to discuss that gradual change started out of concern of rising competition with the potential of newer gaming jurisdictions ending the Las Vegas and Atlantic City duopoly, thereby pushing gaming operators to look at competitive positioning and additional revenue sources. The MICE financial model was also attractive as conventions mid-week and non-holiday periods (times not normally for gamblers) paid full price for the various meeting products from hotel rooms to food and beverage, and when combining these various sources of revenue generated more than the average gambler. This followed with a massive investment in facility construction, establishing “a symbiotic relationship between the casino and convention industries” (p. 78).

The scenario presented by Fenich and Hashimoto (2004) is of relevance to Macao in equating how the MICE industry is perceived by gaming operators, and being viewed historically as acting on the periphery of an already highly lucrative gaming industry. While The Venetian, Macao, has introduced convention and exhibition facilities, a key consideration for other gaming developers will be on the revenue created by gamblers in Macao's casinos vis-à-vis those of potential MICE delegates. Of relevance will also be the impact of increasing regional tourism competition and the emergence and growth of the gaming industry in Asia. This will influence the overall industry's approach to the MICE industry.

DESTINATION ATTRACTIVENESS FOR MICE PLANNERS AND DELEGATES

The portrayal of an attractive MICE location has become a major objective by an increasing number of destinations, regarded as bringing greater economic benefits and destination creditability. As with Macao, destinations may wish to reposition to attract wider tourism segments and, in particular, the business traveler. For destinations, this can mean shifting image perceptions by potential delegates and those involved in the destination selection process for the MICE event.

Choice of destination can be influenced by various internal factors such as image perceptions and motives and attitudes to external factors, which include time availability and perceived costs of the destination (Baloglu & McCleary, 1999). It has been acknowledged that image perceptions will determine eventual destination choice (Echtner & Ritchie, 1991), and, for most destinations, the success or failure of the tourism industry is based on images held by potential visitors and how these images are managed (Sönmez & Sirakaya, 2002). Gartner (1993) suggested that image formation involved projecting selected images to a particular market segment or specific audience to which it is felt that the message would be more receptive. This can be achieved by the use of various influencing factors such as marketing, publicity, and promotional programs. Convention locations also spend vast sums of advertising and promotion budget in the hope of evoking an attractive destination (Opperman & Chon, 1997). To be identified as a “business city” is to be able to condense multiple identities within the city from numerous stakeholders of varying interests and power (Bennett & Koudelova, 2001). The effectiveness of marketing and promotional programs in not only being effectively received by specific tourist segments, but being believed and acted upon will also be a key determinant (McCartney, 2006).

While association meetings are fairly flexible with respect to destination selection (Oppermann, 1996), given the number of cities and financial capitals in close proximity to Macao, such as Hong Kong and Singapore, and various cities in Japan, South Korea, and Mainland China, corporate organizations are also faced with greater destination choice and access within the Asia region. Considering the factors used in the delegate decision process (Opperman & Chon, 1997; Jago & Deery, 2005), a destination selection process incorporating external and internal factors was conceptualized (Figure 1).

Figure 1 Influencing Factors on Convention Destination Selection.

A range of external and internal forces will have varying levels of influence on the selection of a destination for an association meeting. While image perceptions of the destination as an attractive convention location will play a major role, this must also be considered with other factors, such as member support and personal factors. These factors, as explained by Opperman and Chon (1997), could be a mix of economic, time availability, and personal development factors in what the delegate wishes to achieve from attending.

The distinctions between various forms of meetings, such as corporate, association, and government meetings, are important ones, particularly in the destination selection process (Figure 1). An association delegate may have a choice of whether to attend the meeting, in which case the attractiveness and the prestigious and unique setting of the destination becomes of greater importance (Opperman & Chon, 1997). As an employee or invited member to a corporate meeting, the specific destination or city will be determined by the company, with expenses paid by the company, given meeting dates and a closed program (McCartney, 2007). It will be a key corporate executive or small group who determines the destination, accommodation, transportation, number of guests, work and social program, hospitality hosting, and partner programs, perhaps guided by a meeting planner or conference organizer. With government meetings, the setting is of less importance, with a focus on political agendas and decision making, and less on social program and meeting backdrop.

MACAO AND MICE TOURISM

In 1999, the year of Macao's handover to China (PRC) as a Special Administrative Region (SAR), visitor arrivals were 7 million. As seen in Table 1, by 2007, actual visitor arrivals reached 27 million tourists, with this upward trend continuing. However, only 21.3% stayed overnight, being reflective of Macao being viewed as a day-tripper destination for those coming from Hong Kong or neighboring provinces in China (McCartney & Kong, 2003).

TABLE 1 Forecast of Macao Travel Statistics and Casino Revenue: 2005–2012

	Predicted Total	Percentage of	Overnight	Average	Projected
	Visitor Arrivals	Visitors Staying	Guests	Length of	Casino Revenue
Year	(millions)	Overnight	(millions)	Stay (days)	(US$million)
2005	18,711.2	23.7	4,434.6	1.25	5,755.2
2006	21,039.1	27.8	5,838.6	1.29	6,771.5
	21,998.1 ^a	21.3 ^a	4,680.9 ^a	1.21 ^a	7,077.9 ^b
2007	24,046.1	31.8	7,637.4	1.54	8,552.0
	26,993.0 ^a	21.3 ^a	5,739.7 ^a	1.36 ^a	10,377.8 ^b
2008	27,583.6	35.5	9,800.0	1.69	10,650.4
2009	29,873.6	37.9	11,311.1	1.95	12,839.5
2010	31,636.5	37.9	11,993.9	1.95	13,877.5
2011	33,192.7	38.0	12,599. 9	1.95	14,860.3
2012	34,831.2	38.0	13,238.5	1.95	15,915.2
Source: Mellen and Okada (2005).

Macao's historical problem of being a day-tripper destination is predicted to only slightly improve to stabilize at 1.95 in 2009 (Mellen & Okada, 2005) fueled by the efforts of the new casino concessions of The Venetian and Wynn in attracting conference delegates. Yet, this trajectory has already been below predictions in 2006 and 2007 (see Table 1). As highlighted by Mellen and Okada (2005), the predicted tourism growth is contingent on several factors, such as the Macao visitor being less reliant on hardcore gamblers and greater dominance by convention and business tourists; the rapidly growing Chinese economy, which in turn is creating a new middle class with discretionary income for such activities as traveling, gambling, and shopping; and the continual growth of visitors under the Individual Visitation Scheme (IVS) implemented in 2003 after SARS, allowing certain Mainland China visitors to travel individually. Prior to this, travelers from China were only permitted to travel to Macao and Hong Kong in groups.

Macao's visitor arrival figure has continued to grow in tandem to increasing casino revenue, illustrating Macao's continued reliance and focus on the gaming tourist. While there has also been a gradual increase of dependence by the Macao Government on taxation from gaming revenues, which represents almost 80% of Macao's public revenue (Macao Statistics and Census Service, 2008b), the percentage of visitors to Macao staying overnight in a hotel has remained low. There has been a slow improvement in average length of stay in Macao in 2007, reflective of a slight rise in hotel occupancy rates (Table 2). This could be accredited to new convention and exhibition events at The Venetian, as well as other leisure travelers now staying longer.

TABLE 2 Macao Hotel Room and Occupancy Rates

Year	Total Number of Rooms	Occupancy Rates
1995	8,479	60.05
2000	9,201	57.57
2001	9,030	60.66
2002	8,954	67.13
2003	9,185	64.27
2004	9,168	75.55
2005	10,832	70.93
2006	12,978	72.23
2007	16,148	77.19
Source: Macao Statistics and Census Service (2008a).

MICE has been part of the Macao Government's tourism destination positioning statement for several years prior to the gaming liberalization process. However, this has been on the fringes of traveler motives, limited essentially to corporate meetings arranged by local premium hotels. McCartney and Kong (2003) discussed the compatibility of gaming and MICE within the context of Macao, and questioned how well MICE and gaming could interact and transplant the model developed in Las Vegas. They noted the dominance of the day-tripper gambler, which was reflected in tourism statistics, such as an average length of stay of 1.28 room nights in 2002 and the absence of a central coordinating “convention authority” present in progressive MICE destinations. In the study of Macao's destination image from travelers in the cities of Beijing, Shanghai, Hong Kong, and Kaoshiung, of 33 image attributes, the attribute of being a place to have a meeting or exhibition was ranked low in all source markets (McCartney, 2006).

In 2007, The Venetian opened in the Cotai Strip inspired by The Venetian in Las Vegas, providing a momentum for those wishing to position Macao as an elite MICE destination (Nadkarni & Leong, 2007). With 3,000 suites, a 550,000 square foot casino, 1.2 million square feet of meeting space, and 350 stores within 1 million square feet (Macau Business, 2007), this rapid emergence of Macao on the convention stage would also be a significant addition to the inventory of major exhibition and convention centers in China and Hong Kong SAR (see Kay, 2005). This integrated resort model has also been positioned to attract the MICE industry as well as the gaming market, while for other gaming operators in Macao, the focus still remains on the highly lucrative gaming sector, with the creation of two casino tourism models.

The cultural and heritage appeal, also present in Macao, can have an added appeal to destination selection for MICE organizers and delegates. Casinos, however, largely divorce themselves from any external natural or cultural setting with gaming patrons, considering the backdrop largely irrelevant (Smith & Hinch, 1996). The issue is in merging these messages to appeal to a mixture of traveler audiences avoiding destination image confusion, or in the promotion process, a commodification of culture. While the convention and exhibition industry in Las Vegas has been a MICE success in the absence of a rich heritage and cultural legacy, in the case of Macao, it is in providing sustainable differential attraction attributes over competing destinations to potential delegates. In Las Vegas, these evolve around experiences such as world leading entertainment, retail, and dining.

Much of the discussion on considering the development and building of convention centers globally has been based on the premise that these involve public investment with related community interest and participation. A contentious factor in convention development is that, for many destinations, this involves public money, with further money being committed to insure the success of the centers in staying competitive in their total convention product offering (Clark, 2006). The convention development at The Venetian and other major exhibition venues, such as Macao Tower Entertainment and Convention Center, have been through private investment, and therefore manage their own MICE marketing and communications strategy independently from the Macao Government's destination marketing strategy.

Nadkarni and Leong (2007) mention that, given the gaming, entertainment, and leisure components coupled with the developing MICE facilities, this will create a competitive advantage for Macao over regional destinations, yielding higher-spending business tourists. They also add that the liberal export/import policies in Zhuhai (Macao's neighboring city in Mainland China) to those working in the exhibition trade and the large population size can be factors to assist MICE growth. Such policies can assist the integrated resort model (such as The Venetian), while the relevance of any MICE-related strategy on a gaming property would rest on the pivotal issue of revenue potential. The Venetian on the Cotai Strip has been developed with the convention model in mind, while other Macao casino operators at present have limited meeting facilities with a focus on gaming tourism.

The lure of the MICE business is an attractive one. In 2008, the benefit of MICE travelers to Macao is predicted to generate an extra 1.12 million travelers as well as US$35 million of non-gaming expenditure in areas such as retail sales, restaurant receipts, accommodation, and entertainment (Shamdasani, 2008, referencing Jones Lang LaSalle Estimates). As competition has intensified, particularly in Macao's VIP gaming market responsible for the majority of Macao's gaming revenues, this continues to impact and dilute gaming revenues from each operator. Melco/PBL, operating one casino property (Crown Casino) and opening City of Dreams in 2009, jumped from 1% to 16% of the gaming market by January 2008 (Table 3) due to increasing its share in the VIP gaming market.

TABLE 3 2007–2008 Gaming Results: Market Share Per Operator

Casino Operator	Jan 2007	Jan 2008
SJM	46%	30%
Las Vegas Sands	20	21
Galaxy	20	10
Wynn	13	17
Melco/PBL	1	16
MGM	Not opened	7
Total	100%	100%
Source: Macau Business (2008b).

Yet, even with this tightening of competition within the mass and VIP gaming markets, the strategy for some is to stay with the gaming model. The City of Dreams, the next integrated resort and mega gaming project to open in mid 2009 on the Cotai Strip, with the Hard Rock and Grand Hyatt hotel properties, still expects to generate up to 90% of its revenue from gaming (Huxtable, 2008).

Supporting Infrastructure

For Macao tourism industry to follow a similar trajectory as Las Vegas in the development of its MICE industry, a major consideration will be based on achieving collaboration and agreement between tourism stakeholders. The opening of The Venetian has created two gaming models, one being a focus on gaming tourism, the other the integrated resort model encompassing the MICE tourism product. The accelerated gaming developments after the liberalization of Macao's gaming industry have put greater demands on tourism planning and management. In the absence of adequate and appropriate monitoring and corrective mechanisms, tourism subsets and segments such as MICE will face greater challenges to commence and develop.

McCartney (2008) discusses social carrying capacity thresholds for Macao and the need to limit social, environment, and economic impacts on the local community. The Tourism Area Life Cycle (Butler, 1980) is discussed, showing the possibility of destination stagnation and decline should the destination reach capacity limits. Parking spaces are at a premium, with traffic congestion a norm, being a mixture of more private car ownership as well as a large increase in tourist coaches and construction traffic. Lengthy immigration queues and overcrowding at specific heritage spots chosen by tour operators all add to the pressure on a physical infrastructure straining under increasing tourist arrivals. Nadkarni and Leong (2007) warn of the lack of trained professionals in Macao for the MICE industry and that the educational system is not equipped to handle this sudden increase in the human resource needs in the hospitality industry as a whole, estimated at around 35,000 trained professionals in the next few years. With MICE segments requiring higher levels of service, Macao's hospitality industry faces issues of declining standards due to a lack of qualified personnel and internationally certified training programs.

Image Perceptions

Destination selection will evolve around image perceptions. How Macao is perceived by those involved in MICE location selection, given the recent opening of The Venetian and development on the Cotai Strip, and various impacts of information sources, should be assessed in terms of image movement. Here, MICE should be viewed in its division of conventions (association meetings), exhibitions (trade and consumer shows), as well as incentive travel. Association travel will be influenced by factors including local association support and a perception of destination attributes such as accessibility and transportation networks. Macao's exhibition development will reflect on government support, as well as the state of development of regional trade associations, especially in Mainland China. Those involved in generating MICE business such as exhibition organizers, meeting planners, and incentive companies will also assess destination image criteria. The effectiveness of sources of influence would require further scrutiny. These can range from word of mouth (WOM) referrals to the impact of media reporting (from broadcast to Internet), as well as destination marketing actions by the local tourism authority, the Macao Government Tourist Office.

Previously, MICE in Macao consisted mostly of smaller corporate meetings, which continue with larger conventions and exhibitions beginning to appear at The Venetian. The issue will be in not only increasing this MICE traffic but also portraying a destination brand image distinguishable from mature neighboring MICE destinations such as Hong Kong and Singapore. The gaming, entertainment, high-end retail, and dining attributes are certainly distinct advantages, but are manufactured experiences and therefore have the ability to be copied, as seen with Singapore which has recently legalized gaming and introduced the world's first F1 night race. With an increasing reliance on the manufactured experience in Macao, authentic attributes such as friendly and welcoming local people, rich cultural backdrop, ecology, and relaxing atmosphere have been shown to be highly attractive destination attributes (McCartney, 2006). With this, though, is the paradox that the over-dependency on the gaming industry in Macao and the impacts created by the increasing tourism flow can slowly erode these authentic experiences.

The Economics

A greater understanding of the economic impact of MICE tourism in Macao, looking at the multiplier effect and direct and indirect economic benefits to the destination, would assist in its development. Macao's tourism industry is primarily leisure tourism, with gambling being the principle motive for travel. As business tourists will also engage in leisure activities, more analysis should be undertaken to see overall benefits. There is also the potential for an increasing volume of leisure seekers as more integrated resorts open in Macao and whose primary motive is not to gamble. There are a growing number of international dining outlets, world leading branded shops, and entertainment events that are part of global tours now featured in newer casino developments. Their economic impact should be assessed as part of business tourism development, being a litmus test on how the MICE industry will develop.

Due to its economic impact in Macao, gambling still remains a key focus for several gaming operators, while others such as The Venetian embrace MICE development as part of their integrated resort model. With a mix of gaming paradigms evolving in Macao based on leisure (gaming focus to non-gaming focus) and business tourism, this requires constant monitoring to allow for any corrective measures to achieve an optimum mix of traveler segments. Taking such a step can encourage greater tourism stakeholder collaboration and discussion on future tourism development strategy.

DISCUSSION

As mentioned by Fenich and Hashimoto (2004), the issue of casinos embracing convention tourism is a relatively new concept, with little research and analysis done on this unlikely marriage. Convention research and assertions have also been predominantly Western based. Several Asian destinations are increasingly looking at casino tourism, from legalization to upgrading present facilities. An issue of strategic tourism planning and development importance will be how to effectively integrate business tourism within this tourism model. The later stages of the development cycle in Las Vegas found that the coexistence of the “cat and the MICE” can be beneficial. Macao, with resorts such as The Venetian, is now hoping to emulate this cycle at a greater pace. Yet, Macao has increasing gaming revenues already exceeding those of Las Vegas and Atlantic City together, and is at the beginning of its own casino strip development.

It is the vision of the Macao Government and of casino operators such as The Venetian to reposition Macao as a leading leisure and entertainment destination. This requires a shift in image perceptions to appeal to newer leisure segments such as the MICE industry. Recently, some large international conventions and exhibitions are now taking place at The Venetian. The impact of the effectiveness of communication programs in attracting MICE tourism should be monitored, as well as image perceptions, particularly between competing MICE destinations. The manufactured gaming and entertainment components will attract, though distinguishing and promoting other image attributes that attract, develop, and sustain Macao's MICE industry should also be a priority.

With the exponential increase in tourism arrivals experienced in recent years, this article has highlighted the strain on physical and social infrastructure. Macao must work within the parameters of having limited land space and a small population from which to draw its workforce. Investment should be geared toward social infrastructure investment at an international level, with physical infrastructure put in place looking at a Cotai Strip (and a growing hub of casinos in the city area) upon completion.

Paralleling Las Vegas, consensus on legislation and policy to meet predicted demands of Macao's tourism and hospitality industry should be reached, leading to a strategic process of implementation, monitoring, and enforcement. Within an Asian context, the degree to which Macao's model will follow the Las Vegas one would require closer examination and input. The lessons learned from Macao will have greater implications for the Asian region, as it too will look to Macao at the outcomes of this merger of tourism types.

Notes

^aActual statistics, Macao Statistics and Census Service (2008b).

^bActual statistics, Macao Gaming Inspection and Coordination Bureau (2008).

Cotai is an acronym from Macao's two islands, Coloane and Taipa, with the Cotai Strip made up of reclaimed land now connecting the two islands.