THE MASS MARKET SHIFT
- The Platinum
- 1 hour ago
- 1 min read
Macau's junket-driven VIP model once 66% of GGR has collapsed to 26% as licensed promoters plummet from 235 to just 29. Anita Tseng's SiGMA News report documents this seismic shift, but as Mary Mendoza of Platinum Strategic Consulting Group emphasizes, the real story is operational.
"The core challenge is margin quality versus volume," Ms. Mary Mendoza explains. VIP play was high-risk but extremely efficient in yield per player. Replacing it demands far more visitors, supported by flawless hotel, F&B, and transport operations costs now reflected in a 21% marketing expenditure rise.
Yet Mendoza sees opportunity. "Mass market GGR has reached 113% of pre-pandemic levels," she notes, proving brand-led acquisition works. The key is diversification: "Long-term resilience will stem from a diversified spending approach per visitor encompassing accommodation, dining, shows, and events." She advocates leveraging Macau's unique Chinese-Portuguese heritage to craft culturally cohesive experiences. While high-value players may migrate elsewhere, no jurisdiction matches Macau's scale and proximity to China but operators must now compete on destination, not just gaming tables.
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