With or Without You? Building a Case for Further MICE (Meetings,Incentive Travel,Conventions, Exhibitions) Development in Macao

Macao's gross gaming revenues have increased considerably in the past decade since casino liberalization to more than 6 times that of the Las Vegas Strip (Nevada). Macao's global dominance in gaming revenues is in contrast to Macao's meetings, incentive travel, conventions, and exhibitions (MICE) development. With comparisons to the Las Vegas Strip model of a balance between gaming and conventions, Macao's MICE industry has not advanced in tandem with Macao's casino expansion. Macao's bolstering gaming revenues have presented little incentive for most gaming operators to move beyond, with conventions and exhibitions remaining on the fringes of hospitality offerings as a supporting unit to casino product positioning.

As the Cotai Strip enters its second wave of integrated resort construction an increasing number of MICE, as well as other nongaming venues, will be included within the resort designs. A key vision behind casino liberalization, as well as an expressed wish by the Chinese authorities, is for Macao to diversify its tourism portfolio to include more MICE development. Examining Macao's casino tourism growth trajectory, this article suggests this limited growth in MICE could continue. Isolating key limiting factors, strategic actions are presented in the paper as approaches to further involve and potentially advance MICE development along Macao's Cotai Strip.     

California Resident Motives for Gambling at Indian Reservations Versus Las Vegas

The casino gaming sector has become a lucrative part of the hospitality industry. California Indian casinos have expanded to now compete with casinos in Las Vegas, but more California residents gamble in Las Vegas casinos. Little research has been conducted to reveal why California residents travel to Las Vegas to gamble at casinos when California Indian casinos are closer. Thus, this study focused on what motivates California residents to gamble at California Indian casinos as opposed to those who gamble at Las Vegas casinos. A total of 300 online surveys were used for data analysis. First, exploratory factor analysis was performed to find the underlying dimensions of casino motivations. Second, independent-samples t-tests were conducted to compare the perceptions the two groups have of casinos. Then, one-way ANOVA tests were implemented to find differences between casino motivation factors and six different demographic variables. This study will help both California Indian and Las Vegas casinos to assess their services and more effectively market to California residents.     

Enhancing the Role of Host Communities in the Management of Protected Areas through Effective Two-way Communications: A Case Study

This paper conducts an analysis of Macau's strength, weaknesses, opportunities and threats (SWOT) as related to its gaming development strategy in the wake of its issuance of multiple gaming licenses. The analysis shows that copying the Las Vegas style is non-optimal for Macau because it will force Macau to compete with Las Vegas and other Las Vegas-style Asian gaming destinations for casino visitors and fight with Hong Kong for non-gaming tourists in the future. Furthermore, this approach will change Macau's current market position as a gamblers' destination and cut into operation profits. Taking advantage of its cultural heritage and unique market segmentation, Macau may develop Chinese- and/or Portuguese-theme casinos heavily leaning toward gaming activities. By creating its own gaming model, Macau may not only maintain its market niche in the future but also develop its gaming industry in a more profitable way.     

Casinos and Conventions

ABSTRACT

The casino industry has always relied on the leisure traveler whose primary motivation is to gamble. Thus, one would expect the casino and convention industries to operate in totally different arenas. This was the case until the mid-1990s. Today, the casino industry is embracing the convention industry and constructing facilities to meet the needs of the convention and meeting attendee. This article starts by setting up the framework for this dichotomy between the two industries by tracing the history of casino gaming in the U.S. Discussion leads to a review of how and why there was a lack of conventions/meetings business in both Las Vegas and Atlantic City. The article then goes on to review specific development of the conventions/meetings business in Las Vegas, Atlantic City, and other jurisdictions. It concludes with a prognosis about the future along with opportunities for future research.     

Examining the indirect impact of showroom entertainment on hourly slot gaming volume: The case of a Las Vegas hotel-casino

With the advent of the destination casino resort featuring multifaceted entertainment and convention venues in the gaming industry, researchers have attempted to estimate the indirect gaming contributions of non-gaming casino amenities such as showroom entertainment and restaurants. The daily data of aggregate gaming volumes analyzed in previous gaming research, however, do not allow exploring transient gaming volumes associated with casino amenities during a much narrower range of time periods (i.e., hourly). The current investigation addressed this limitation by examining the relationship between showroom headcount and hourly slot gaming volume for the time period that fell adjacent to the show's start and end times. Based on the time-series regression analysis of daily data from a Las Vegas Strip hotel-casino, the current study found a positive and statistically significant effect of showroom headcounts on hourly slot volume at 6 p.m., 9 p.m. and 10 p.m. The estimated incremental slot revenue per paid showroom attendee, however, was financially immaterial. Considering major investments in showroom entertainment at many casinos, the current study will help casino operators evaluate the showroom's return-on-investment.     

Gaming can be sustainable too! Using Social Representation Theory to examine the moderating effects of tourism diversification on residents' tax paying behavior

Tourism authorities in the Las Vegas region have suggested the diversification of the tourism industry as a strategy to improve the vitality of rural communities outside of the metropolitan area. The present study uses Social Representation Theory as the conceptual basis to test the moderating effects of the various types of proposed tourism development on residents' willingness to pay higher taxes to support such development. A survey of 301 residents in Las Vegas rural communities examined how the factors of economic dependence on tourism, community attachment, and ecocentric attitude towards tourism influence residents' perceptions of tourism's impacts. A higher economic dependence on tourism and higher levels of community attachment led to more favorable perceptions of tourism's economic and social impacts. The economic impacts, in turn, resulted in a willingness to pay higher taxes, irrespective of the type of tourism development proposed by the Las Vegas authorities. The results suggest that rural communities reinforce a hegemonic social representation of tourism in order to characterize the ethos of capitalist urbanism that pervades the economic development discourse. The residents' social construction of tourism has important implications for tourism planners in the region and suggests the adoption of an inclusive tourism diversification strategy that leverages both gaming and alternative tourism.     

Estimating the impact of showroom entertainment on the gaming volumes of Las Vegas hotel–casinos

Increases in showroom headcounts are found to increase casino gaming volumes in two Las Vegas Strip casinos. This study examines long-standing assumptions regarding the indirect contribution of investment-intensive showroom entertainment. Such contributions are difficult to measure and the literature contains no rigorously derived estimates of gaming contributions from in-house entertainment venues. Despite the paucity of research, gaming companies are willing to invest staggering sums in showroom entertainment, based in large part on the belief that traffic from these venues will increase gaming volumes. Using estimates produced by time series regression models, the two showrooms produced average gaming win contributions of $11.28 and $19.32, per paid showroom attendee. Based on these estimates alone, extravagant investment in showrooms would have to be justified by other means. Future studies aimed at understanding the showroom contributions to non-gaming profit centers and the role of showrooms in the high-roller's patronage decision are both recommended.     

Estimating the impact of entertainment on the restaurant revenues of a Las Vegas hotel casino: An exploratory study

Considering the growing presence of non-gaming amenities in a mature casino market such as the Las Vegas Strip, this study examined the indirect contribution of showroom entertainment to casino-operated restaurant business volumes. Using the internal data of a Las Vegas hotel casino, this research found a statistically significant and positive relationship between daily showroom headcounts and food and beverage revenues. For each additional show attendee, daily food and beverage revenue increased $6.96. This finding suggests that casino executives should consider leveraging show traffic with additional revenue-enhancing venues such as restaurants.     

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

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.     

Casino tourism,economic inequality,and housing bubbles

Potential linkages among tourism, inequality, and housing are addressed for an integrated analysis in this paper, with Macao treated as a typical case. Casino tourism, albeit performing as a major key to local economic growth, is ultimately vulnerable to external shocks to gambling demand, as evidenced by the current sharp downturn in Macao. We find that faster gaming growth leads to higher income inequality while at the same time both factors are responsible for soaring housing bubbles, which constitute the very source of social tensions as in Macao. Casino tourism if not well managed may not be a panacea for all development goals. The implication for policy derived from this study is that Macao must deal with underlying issues rather than apply palliative measures. Its market failures may necessitate government interventions to ensure social equity and sustainable tourism.     

Conventions and Gaming in Las Vegas: Friends,Enemies, or Strangers?

As cities look at various industries to strengthen their economies, officials have begun to examine conventions and gaming more closely as they have often been considered “recession-proof.” This study utilizes time series regression to analyze the effects of convention attendance and hotel occupancy on monthly gaming revenues for Las Vegas from 2002 to 2013. Three commonly held opposing viewpoints in trade literature are that conventions reduce, augment, or complement gaming. These viewpoints produced the hypotheses for this study. It was found that convention attendance had no significant relationship with gaming revenue; however, citywide hotel occupancy was found to have a significant positive relationship with gaming revenue. This finding rules out the reduction and augmentation hypotheses.     

Comparing the price of sin: Abnormal returns of cross-listed casino gaming stocks in the Hong Kong and US markets

While a number of hospitality researchers have investigated hospitality stock returns, few examine the stock returns of casino gaming companies. In finance, these stocks are often termed as ‘sin’ stocks. The purpose of this study is to compare the stock returns of cross-listed casino gaming stocks in Hong Kong and New York stock exchanges. Four pairs of casino gaming stocks are currently cross-listed in both exchanges, allowing for comparison. The cross-listing sample consists of 3138 firm-day observations from January 2009 to December 2013. Preliminary analyses, using time-series regression, show that the average daily returns and standard deviations of casino gaming stocks are much higher than market indices in both jurisdictions. Most importantly, casino gaming stocks listed in Hong Kong exchange have a significantly higher abnormal return than their cross-listed counterparts in the US. The reason may be due to cultural issues. These findings will have meaningful implications to investors of casino gaming companies.     

A Re-examination of the Legalization of Casino Gambling from the Japanese Tourist Perspective: A 10-year Review

With the explosion of casino development in the Asia Pacific as well as the USA, casino gambling has become more culturally embraced as a recreational activity. The purpose of this study was to re-examine the legalization of casino gambling in Hawaii from Japanese-speaking tourists' perspective and compare these results with a previous study completed a decade before. With the continuing decrease of Japanese visitors to Hawaii, and with the importance of the Japanese market to Hawaii's economy, state officials are considering other forms of tourism to help revive the Japanese tourism market and increase Hawaii's global competitiveness. By analyzing the responses of the current Japanese-speaking tourists to Hawaii and comparing these responses with the Japanese tourists surveyed 10 years previously (1996), an attempt can be made to determine whether Japanese tourists in 2006 have changed their perception of the legalization of casino gambling in Hawaii. This research examines a number of challenges to consider concerning the legalization of gaming in an established tourism destination such as of Hawaii. Although the findings of this study indicate that the Japanese-speaking tourists have changed their perspective from past studies on the effects that legalization of casino gambling has in Hawaii, future research should focus on other segments of the tourist market.     

Influences on Video Poker Machine Performance

Abstract

This study seeks to determine if slot machine performance levels are influenced by casino floor location and specific game characteristics. A Las Vegas hotel casino supplied the results of 418, $0.25, video poker machines, which were used to test hypotheses based on the findings of extant performance-potential research and casino management theory. Results from a simultaneous multiple regression model indicate that the core locations of the slot floor, featuring superior access and traffic volume, outperform the perimeter locations. Variables representing cabinet style (i.e., slant-top and bar-top units), par and program are also found to influence a machine's performance, at the .05 alpha level. The resulting equation offers an alternative performance measure that considers the unique operating parameters of a game, moving beyond basic performance comparisons of unit results to category averages (e.g., all $0.05 video poker games).     

Forecasting in Short-Term Planning and Management for a Casino Buffet Restaurant

SUMMARY

Demand fluctuation accounts for an important consideration in a restaurant's daily operational decisions. Good short-term planning and management require accurate forecasts of daily demand. The objective of this study is three-fold: (1) to apply, evaluate, and compare different methods of forecasting customer counts for an on-premises buffet restaurant of a local casino in Las Vegas, (2) to describe and propose a combined forecasting approach for this casino buffet restaurant, and (3) to explore the concept of revenue and capacity management for this buffet restaurant. Eight forecasting models were tested and evaluated by two common error measures. The results suggest that a double moving average model was the most accurate model with the smallest MAPE and RMSPE. Extensive discussions on forecasting and planning/management in buffet operations are provided along with recommended future research.     

Brand personality of tourist destinations: An application of self-congruity theory

The purpose of this research was to investigate the perceived destination personality of Las Vegas and to examine the relationships among destination personality, self-congruity, and tourist’s behavioral intentions. A convenience sample of 382 visitors to Las Vegas was surveyed, and 368 usable questionnaires were analyzed. The findings of the study indicate that tourists ascribe personality characteristics to destinations and that the perceived destination personality of Las Vegas is five dimensional: vibrancy, sophistication, competence, contemporary, and sincerity. These dimensions have a positive influence on tourists’ intention to return and intention to recommend. The study also supports the self-congruity theory within the context of tourism destinations, indicating that both actual congruity and ideal congruity have a positive impact on behavioral intentions. The study concludes that self-congruity is a partial mediator on the relationship between destination personality and tourist’s behavioral intentions. The practical and theoretical implications are discussed within the contexts of destination branding and the self-congruity theory.     

Free-play impact by customer segment

Little is known about the effectiveness of casino free-play campaigns, despite hundreds of millions of dollars in annual redemptions. These costly play incentives are awarded to individual players, based largely on management’s evaluation of their historical play. Extant campaign-level research suggests these incentives may not be effective in driving spend per visit, but there has been no attempt to examine efficacy across player tiers (e.g., light, medium, and heavy users). Analysis of 365 days of performance data from a Las Vegas Strip casino produced varied results across tiers, but all tier-level findings indicated a failure to recover the face value of the free-play incentives. While no support was garnered for the house money effect, the results were consistent with the notion of loss aversion. The methodological approach outlined herein provides the means to critically evaluate free-play offers at the tier level, fast-tracking campaign optimization via more targeted revisions.     

Job Satisfaction,Organizational Commitment,and Internal Service Quality

Abstract

The purpose of this study, was to create a case study in employee attitudes on job satisfaction, in a major Las Vegas, Nevada hotel/casino. To accomplish this, the authors specifically investigated the discrete level of their job satisfaction, internal service quality, and organizational commitment. They also explored the overall impact of job satisfaction and internal service quality on employee organizational commitment. Currently there is no reported research on the simultaneous examination of these three variables. The results of this study have practical applications given the size and the nature of the casino business, in which a large number of employees may be assembled in a single location, and where employees may move easily from one property to another.     

剖析内地旅客在澳门只作短暂停留的原因与对策

旅游(及博彩)业长期都是澳门经济的重要产业.在2003年内地"个人游"政策实施后,来澳者过半为内地旅客,可是他们平均在澳停留天数偏低.本文通过深度调查访问、问卷调查和统计分析探究及检验内地旅客决定在澳停留天数的因素.结果发现来澳目的、来澳次数、可支配收入、出入境交通工具、出入境便利性等都是重要因素.故本文提出以下对策:鼓励以商业为目的的旅客,举办季节性转变的主题活动,在内地高档场所加强宣传和推广,开拓更多的航班和航线,提高边检部门的效率等.     

Understanding the reactions of government and gaming concessionaires on COVID-19 through the neo-institutional theory – The case of Macao

This paper looks at how Macao, the world’s most densely populated city, deals with the COVID-19 disease, with a focus on government interventions and responses of the gaming concessionaires who operate integrated resorts. Macao was selected as the case not only because of the background of the authors, but also because Macao has been cited in many media coverage as a “good practice” example when it comes to fighting against this COVID-19 pandemic situation. Since there are already ample of articles on the background, development timeline, and overall commentary, this paper adopts a mixed approach by combining supplementary secondary data on the COVID-19 timeline in Macao (focusing on government interventions that can affect the tourism and hospitality industry) and primary qualitative in-depth interviews with senior management personnel (holding positions of Director or above) from major integrated resorts in Macao to get insights on industry strategic responses and expectation on future. A total of seven interviews were conducted with senior management members of five integrated resorts in May 2020. Four areas of responses were identified. They are 1. Survival; 2. The New Business Norm; 3. Business Rebound Strategies and 4. Corporate Social Responsibility (CSR). The findings indicate a seemingly utopian scenario among the major integrated resorts and gaming concessionaires in Macao towards their compliance and autonomous actions. The mechanism of this utopian-like scenario is explained by adopting the neo-institutional theory.