Team: ACE

◎  How Gaming Entertainment Converges with the Hospitality Industry in terms of its Economical and Social impact

1) Economical impact: Increase of GDP

In the positive economical way, gaming entertainment can raise the GDP of the economic in as much as casino can attract more tourists to visit and do the consumption that enormous visitors love gambling, so they will always come and spend tons of money on it. Thus, their consumption can increase the GDP.

2) Economical impact: Single-industry structure

In the negative economical way, some regions like Macau will just depend on the gaming entertainment for its economic structure, so its GDP has a large part for gaming entertainment. However, this region economic will easily be affected by other economic because its economic depends on other economics. Therefore, its economic will be unstable due to single-industry structure.

3) Social impact: Strike the illegal gambling

In the positive social impact, regulation of gambling is set up, which offers people a better place for gambling. Otherwise, people need to gamble in the illegal place and maybe have many problems such as personal safety and guarantee of receiving money.

4) Social impact: Enhancing the gambling atmosphere

In the negative social impact, Gaming entertainment in hotels is accessible to people for gambling, so many people will encounter gambling and emphasize gambling . Thus, it will cause various social problems like disharmony in family.

◎  Successful Strategies of Operating Gaming Entertainment

1. Service diversification

Providing only gaming service is never enough for companies to become successful. Recent trend is that they provide a lot of other entertainments or relaxing activity in the venue. For example, there are places for kids to play around near the casino. It is because many customers tend to bring their kids to the hotel or casino but kids are not allowed to enter casino. Having a kids playroom or playground can attract more customers to go gaming without worrying their kids. Also, they will have spa centres and restaurants.

2) More attractions in hotels

Hotels nowadays tend to build many attractions to attract customers. They create a theme for the building which is beautifully decorated and has its characteristic. For example, the Infinite Pool in Marina Bay Sands Singapore. It is a must-do activity if you choose to stay in Marina Bay Sands. The views are breathtaking as it is on the top of hotel and it is a borderless swimming pool. Attraction like this can make the gaming entertainment industry more successful by providing such fabulous facility so that when people want to gamble, they will think of these hotels. They can have fun in gaming at the same time they can go to many attractions.

◎  Studio City

Macau has the world largest gambling industry which is accounting for the largest revenue in GDP. Recently, a new and elegant hotel which calls Studo City start business with a series of new exciting entertainments for customers.

The Studio city has the world's highest figure-8 Ferris wheel and admiring views of the city 130 meters up in the air.

Customers can enjoy a truly unforgettable experience on Golden Reel. It suspends at 130 meters between two Art-Deco hotel towers, this iconic landmark features.

Studio City has an exciting 4D flight simulation ride which is "Batman Dark Flight." It enhanced and equipped with the latest in flight simulation technology and the very best in audio design and visual graphics. It must bring an unforgettable and fresh experience for getting a ride in the game.

Audiences step into this 3-theater arena  and let the world’s greatest magicians lead you on a magical journey. It is hosted by the world famous illusionist, Franz Harary in which audiences witness incredible illusions and fascinating trickery at every turn as you move from one performance to  another.

◎  Trends and News about Development of Gaming Entertainment Industry

1. More emphasis on gaming entertainment

Nowadays, the gaming industry puts more focus on the entertainment part that makes the casinos differentiated and unique. The casinos offer high quality food and beverage and luxury hotel rooms. It provides convenience and enjoyable experience for the guests, and enables them to stay longer.

Besides, theme parks, rides, and museums are incorporated into some of the casinos, which attract the people to get to there and spend more money on the entertainment and gambling.

Some casino hotels provide venues for live performance such as concerts and musicals. The audience needs to pass through the casinos. It tempts the audience to enter the casino area to gamble before and after the shows.

For example, Studio City Macau is a newly established casino hotel. There are impressive cinema-themed resort and two-tower hotel, with exciting entertainment venues for world-class performances. What’s more, there are luxury brands and different kinds of restaurants for visitors to shop and dine.

On the other hand, Galaxy Macau’s Grand Resort Deck developed the world’s longest sky top aquatic adventure river ride at 575 meters and world’s largest Skytop Wave Pool and white sand beach, with waterslides and waterfalls for guests to enjoy.

Ref: Studio City Macau retrieved from https://www.studiocity-macau.com/en/ and Galaxy Macau retrieved from https://www.galaxymacau.com/en/about-us

2) Expanding hotel room inventory in gaming properties

The casino hotels tend to expand their business by increasing the number of hotel rooms. They fulfill the market demand for accommodations and earn additional profits.

Take Galaxy Macau as an example. It established its Phase 1 in 2011 and it found that there was an opportunity to expand. In 2015, Galaxy Macau and Broadway Macau™ opened Phase 2 with doubled size.

Ref: Galaxy Macau retrieved from https://www.galaxymacau.com/en/about-us

3) Continued scrutiny by government

From 2014, Macau government incorporated with China government to adopt several anti-corruption policies so as to keep its image positive and promote integrity.

For instance, it limits the use of Union Pay. The duration for visitors to stay is shortened. Smoking in casinos is not allowed. These policies hindered the growth of the gaming industry in Macau.

Exhibit 1: Gross revenue from different gaming activities in 2010-2015

Due to the new policies, the gross revenue has dropped continuously (see Exhibit 1) since 2014. This implies that the growth of the industry is stagnant and declined.

Ref: The Gaming Inspection and Coordination Bureau retrieved from https://www.dicj.gov.mo/web/en/information/DadosEstat/2015/content.html#n5