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Monaco and Macau Gaming Sectors and Other Business Activities

Abstract

Casino gaming is a form of entertainment activity that requires one to pay to secure a chance to win money. Monaco and Macau regions are known to be engaged casino gaming activities since there is inadequate space for agricultural and industrial output for its citizens. Macao with its biggest facilities, stronger government and faster growth has enabled it achieve world class status as tourist favourite destination region. Monaco has remained Europe’s tourism center due to its modern image of infrastructure, best climate and safety in the region, has it enabled it achieve the status of top destination place for luxury tourism and business activities. Monaco has also strategized tourism development goals to be attained before 2011. One of the goals was to extent its territory by 30,000 sq miles to create more room for tourism development. The territory is expected to be ready by 2015 and will 5,000sq miles long beach, a number of hotels, museums and a port for cruise ships.

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Introduction

Macau returned to China in 1999 from Portuguese after 500 years of detainment. Business and tourist attraction sites are among income contributing activities in Macao therefore ranking it among the top world’s wealthiest territories. Examples of tourist sites include; villas, casinos, museums and the gambling mecca of the orient. Macau is embedded in Western culture and capitalism. The tidiness surroundings Macau city it is what makes it more fascinating. It has also made efforts to claim back its history by restoring the historical sites, for example ancient villas and churches. Portuguese who had earlier settled in Macau influenced a number of tourist sites such as Guia fort, Loyal senate, St. Domingo church, Monte Fort , St. Paul’s church, the revolutionary building and the 15th century temples are among the pre-colonial buildings that contributes to the great history of Macau hence tourism attraction.

Aims and Objectives

The aims of this study is to determine the development of Monaco’s gaming industry, its creativity development in advancing its gaming activities into Electronic arts and its diversification of economy to other industrial activities to develop the economy. We are also going to look the benefits of Macau entering into partnership with MICE and how the government should support its local business to attract foreign investors and boost its economy.

Methodology

Monaco and Macau both have street circuits in professional car racing. Macau has taken this into a major sporting event. Macau has modernized its Formula1 cars with sheer and elegance provided with good hotels to accommodate tourist (China Briefing 2009). I retrieved online tourist data bases, journal articles and website on Monaco and Macau investment strategies to come with the literature review below. Qualitative method of analyzing was used for gathering information in this research.

Macau

Macao hosts the one of the finest and widest art museums in China known for its old ancient taste of wine. Taipa City is Macau’s Capital making a fusion of two cultures; the Portuguese and Chinese. TheTaoist temples, colonial baroque architecture in Taipa’s city of Macau, the lavish parks that surrounds the city and the episodic beaches are among tourist attractions around the city. Hiking is also known to be the most popular activity in Macau. The Central part of Macau hosts about 26 spacious casinos that attract huge numbers of tourist all over the world. There are tourist hotels already designed with casinos, for example the Lisboa hotels, it could be hard for someone to be in the hotel and not gamble. Apart from the mentioned 26 casinos in the central part of Macau, there are a number of many more casinos being constructed for the same purpose. Apart from gambling, the casinos offer a variety of games to visitors. Most of the casino in Macau have tried to emulate Las Vegas designs; the affluence, luxury, greed, and bright lights (Destination 360 2008) (Virtual Tourist 2006).

Macau has its own international airline and the airports provide free shuttle buses to the nearest casino and hotels. Grand Prix is one of the only two streets circuits found in Monaco and Macau. Macau has had car racing twisted circuit for over 50 years, it has the largest F1 cars and Formula three machines with speeds of 270kph. Grand Prix gaming activity is Macau’s biggest event and contributes to its economy three times more than casinos would deliver. Past winners of Formula 1 car racers include Michael and Ralf Schumacher, John Miller, Aryton Senna, David Coulthard and many others. This world renown F1 have actually contributed to the international brand name of Macao tourism reports Euromonitor international (2007). Grand Prix of Monaco has become the major world sporting event classified as one of the prestigious street circuit races in the world (Grand Prix Tours 2009).

Monaco became the wealthiest tourist destination in 1863 with visitors coming from all parts of Europe. During that period, Magician of Monte Carlos was managing the Sociètè des Bains de Mer. Gaming activities provided Monaco most of its revenues until world War II when it decided to diversify its economic base to other tourism activities. Monaco known for its rich culture was proposed to be the European tourist centre therefore making its earnings the economy’s backbone. Tourism in Monaco contributes to 15% turnover and this has continued to grow over the years. For instance, tourism turn over grew by 11% in 2005 was expected to grow even more in 2006. Leisure tourism, quality services, artistic features and Monaco rich culture are among the top reason for tourism in the country. Tourism development is sponsored by Grimaldi Forum helped in the creation of events and infrastructure, where as the state’s Societe’ des Monaco relied basically on leisure monopoly. Public authorities have also helped boost Monaco business tourism by investing in it maintaining a stable economy in low seasons. Increased infrastructures such as hotel renovations to modern structures and building on new dikes has increased the number of cruises and yatchs hence more passengers (Euromonitor international 2007).

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Monaco strategy adoption in creativity development

Monaco is still growing in its gaming industry, one of the latest include the video game industry which is still in research discoveries. Electronic Arts studio was opened at Imagina conference 2008 suited in Morrisville which was a 3D technology exhibition. Video games created by Monaco Electronic Arts contributed to $40 billion total sales that led the Imagina organizer to come with more advanced technology in the games by integrating panels into four day schedule and full day video game key notes. Glenn Entice exalted 3D development engine technology provided by Cary –based Epic Games as unreal. The new technology had multiple game franchises such as WWII game, Army of Two expected soon and the Medal of Honor Airbone. Monaco is still developing its game technology. A lot of studio has come up in the country building different genres of games with more advanced technology that has more technical cultures in Electronic arts. Entice in his speech comments that Monaco games and teams of experts were the best technology ever provided. He continued that the game advancement lowered production time and minimizes technical risk (Gaudiosi 2008).

Monaco gaming strategy

Monte Carlos in Monaco is widest and the most famous location for roulette, blackjack and poker games. In July 2006, Monaco launched an online gaming world class casino. With its over 35 years of experience in land based casino veterans, the online gamming business was picking up its business slowly. The online casino game offers a variety of games to choose from. It offers over 300 games for $ 200 with 200 free spins. There are various incentives put in place to boost its online gaming business for example every new player is given 100% Match bonus or wager up to £100 FREE and comes with a free Casino Kit. Cash back rewards are also offered for every player in the online casino. Wherever a player registers to play, he is automatically enrolled in the G3 rewards club. Members earn G3 points in each wager every time they play and this gets then closer to rewards (Gaudiosi 2008). There is also an online review and guide for hotels and casino in Monaco and other forms of gambling games such as lottery and poker provided an online map to their locations in Monaco (World Casino Directory 2008) (G3casino 2009) (Online Gambling insider 2008) (YourMonaco.com 2008).

The games provided online are the same games offered at their land based casinos. There are video slots to choose from, Card Games, Video Poker, Progressive Slots, Reel Slots and Table Games. It offers casino credits in various currencies such as USD, Euros, Pounds and Canadian Dollars to suit every player. Languages offered are English, French and German and provides bank deposit and withdrawal methods in Visa Electronic, Delta, Instant wire, PaySafeCard, UseMyBank, visa, Ezipay, MasterCard, echeck, NETeller, InstaDebit and Ukash. What makes Monaco gaming online more attractable is the Micro gaming casino software that can be easily downloaded and comes in Instant play Flash Casino versions. The casino also provides 24 hour customer support via messenger chats or email (Casino-dossier 2009). Solitaire for building words is another one of Monaco’s online games that comes in three levels in downloadable version and offered at low price of $6.99 (BigFishGames 2009).

Monaco Gold Casino is another online gambling activity that enables users from all over the world to register and receive $1000 as a welcome bonus as well as a trip to Monaco. The game is hosted online for 24 hours 7 days a week with a strong support team dedicated to make a clients time at Monaco gold a memorable one. The game provides different language options such as French and English to suit different users. Prominent VIP Club is offered on the game options to that enable users to gain privileges, benefits and involve in social promotions. Monaco gold Casino uses Playtech software which specializes in searching and developing the most invigorated games. This online casino features 70 free games, nice music with ravishing graphics. Playtech safe and latest software Monaco Gold Casino uses provides quality gaming options that include best slot machines, table games, card games and video poker games. More games have been recently added to it to suit each customer’s unique needs. The games include Bonus Bowling, a number of arcade-style games and Jackpot Darts (Best casino 2006).

3D graphics and digital sounds incorporated in the game creates fast, smooth flowing and realistic gambling experience that keeps a client going for hours. Other incentives are also offered to encourage its members to play comps online. $1,000 cash bonus is offered to new players willing to deposit $5,000 and a deposit of $300 and more would receive a 200% bonus and players will lesser deposit would receive 100% bonus with $200 deposit. Players on their second deposit also receive a 40% bonus on deposits more than $200. Customers who use wire transfer receive a bonus of 15%, NETeller and other money transfer methods receive a 10% bonus (Best casino 2006). Macau online gaming on the other hand does not offer incentives to its players and has not invested so much on it as an economic contributor. Online casino games offered here are table games such as Red Dog Poker, craps, Caribean Poker, Roulette Suite, Pai Gow Poker, Let It Ride Poker, Casino War, Blackjack Suite and Baccarat Suite. Where as video poker includes Deuces Wild, Jacks or Better, Wild joker, Double Barrel Bonus, Instant Keno and Shockwave Keno and slots machines are offered in 20 Line Slots, 3 Reel Slots, 9 Line slots, 8 Line Slots, Progressive slots and Free show slots. Most of these games are also offered in Monaco online games and well designed with the latest software technologies with numerous bonuses offered to attract more customers while Macau has not put much emphasis on online gambling (VivaMacau 2008).

Monaco incentives in boosting its economy

Monaco has established a favourable tax system to non-French residents that requires them to pay no personal income, no tax on capital gains and housing taxes. Companies outside municipality contributing 25% of turnover are taxed at a lower rate of 33.33%, 2.66% taxing on running cots of administrative offices, 19.60% on sales, tax credit offered to companies involved in technical and scientific research programs and new companies are exempted from tax in the first two years of operation (Monaco-consulate online 2009: Lowtax 2009). Although the Monaco might be having a stable economy due to its luxury yatchs and casinos, money laundering activities have been going on without its government questioning or investigating the activities. Its financial surveillance system is understaffed to efficiently work on its financial issues. Other business activities are being threatened by this and they will soon close down. Corruption, prostitution, drugs and Russia mobs are finding their way into Monaco and these activities will scare tourist away hence unemployment since tourism is the back bone of its economy. Tax incentives offered to business locals as well as foreign investors will help has enabled the country diversify to business activities other than relying ion on MICE to boost tourism sectors. (Daley 2000).

Costa Antunes, the director of Macau Government tourist Office in the annual meeting represents the countries future marketing strategies such as the invent of “World of Difference, the Difference is Macau” slogan helped the country source markets for tourism at home and internationally as well as strengthen its regional tourism and international cooperation. The promotion tourism activities were advertised in major tourism fairs, publications and road shows. Also tourism routes were launched in different countries with a variety of packages to choose from such as one for retirees, religious groups, sports lovers, photographers, honeymooners, luxury, university students, family, and historical scholars. Among its plan was to develop more flight routes to source markets such as international flights to Middle East, Russia, Vietnam and Indonesia. Macau’s tourism industry also proposed to provide tourist with up to date information. Macao SAR government is working together with its outstanding Historical centre to develop MICE industry to boost its tourist sector and develop its economy (Macao Government tourist Office 2007).

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Grand Lisboa is the newest Macau’s casino with spacious spaces for gambling and shopping for tourist. Chinese have been the major consumers for gambling activities in Macau contributing to its revenue earnings. According to Macau government data, gambling activities are the biggest earners for its revenues that’s why it needs to attract investment into gaming industries to generate more revenue (Josh 2005).

Macao is slowly findings its way in international, incentive, conference and exhibition (MICE) markets to develop its tourism business. MICE will enable it develop into a city with full facilities for entertainment, travel, business, convection and exhibition and for leisure spot for Asia Pacific regions. MICE project enable Macao generate about $46 billion in convectional and exhibition services in 2005 and even higher in 2015 with $188 million that would secure 2,500 job opportunities by 2010. A MICE operator, Las Vegas SandsCorp invested $2.4 billion in the construction of Venetian Macao resort which hosts the world’s largest gaming floors and holds the most advanced convection and exhibition facilities in the Special Administrative Region of Asian and the world. Venetian Macao casino resorts also have six adjacent exhibitions halls and 108 meeting rooms. The building accommodates more than 50,000 people and 5,000 exhibition stalls. Cotal Strip of 27,800 sq metres is another project underway sponsored by MICE. MICE agenda is to transform Macau into a major tourism destination centre of the world. Sheldon Adelson, the chief executive officer of Sands said their objective was to turn Macao into a premier leisure, meeting and convection destination and entertainment spot for tourist all over the world. Macao MICE industry boosted Venetian Macao by increasing its wages from 25 to 30 percent which is a positive development sign making it a favourable environment for MICE industry. It would take some time for MICE industries to fully develop in Macau since its local markets are not fully regulated by the government and also meetings and convectional events are not properly arranged, some events are booked close to each other (Jiawei 2008: Macau Daily Times 2008 ). Macau Government Tourist Office is also working with MICE and the Hong Kong Airport Authority to boost ferry links from its international airports Macau to attract large numbers of tourist (Destination Macau 2009) (Summit 2006) (Sachat 2007).

When the Venetian resort was opened on Macao’s Cotai Strip, it attracted a lot of tourist all over the world making it a world-class gambling destination. Macau Government Tourism Office promotion activities have promoted its region as an attractive place fro MICE and business tourism. MICE events would ensure repeated tourism visitations therefore saving the country in low seasons. MICE plans to invest in Venetian resort will boost nearly 2 million square feet in meeting and convection space, 20 times of its original gambling floor. This move also doubled Venetian’s guest when MICE moved in, a favourable step for economical development (China Economic Review 2008). Casino gambling services has moved from gambling monopoly services to high added value activities with the latest technology in gaming, constructed good hotels with good hospitality, entertainment and reaction activities that has attracted more tourists into the country. Casino gaming has directly and indirectly influenced the opening of other business sectors hence a positive impact on the country’s economy (SIU 12) (SUI 970). Success of MICE in Macau will not only depend on heavy investment but also on marketing and promotion. Macau is actively marketing is tourist hot spots on road shows and tradeshows and it should also improve its services to realize MICE benefits (Reehorst 2008).

Macau has also ventured in sports activities becoming new Asia sports capital. World renowned player and teams are invited to feature in Macau’s major events to promote its business brand as a tourist destination. Teams such as Manchester united, Yao Ming’s Chinese national team, Orlando magic, Cleveland Cavalier are getting invited into Macau. It also held multi sports competition in 2004 hosting world motor sport grand prix, Asia tour golf and many other sports (The Manila Times 2007: macau.com 2009). Macau is also making plans to expand its territory as an international tourist centre by inviting world-class performing artist such as the Spice, Girls, Celine Dion, The Police, Rod Stewart, Cirque du Soleil, Eric Clapton and Billy Joel to market its country as a tourist destination. Macau is still growing in terms of business and is soon going to match up Las Vegas (Gafencu 2008)

Monaco on the other hand hosts international sporting events that attracts tourist all over the world therefore developing its economy. Examples of the sporting events include Car racing hosted by Automobile Club de Monaco, Monaco’s Formula1 Grand Prix held every year and brought about economic transformation within the town, we also have Monaco Historical Grand Prix held every two year in the month of May show casing old cars built from 1934 to 1979 that are characterized by leather helmets, shiny chrome and smell of paraffin in the air. Tennis Master Monte-Carlo is a traditional rendez-vous compiled in the history of international tennis an event of suspense and thrills. This sport activity attracts tourist all over the world to come serve, smash and slob tennis on the Central Court and Court des Prince held in Monte-Carlo Country club. International swimming Meeting held in Monaco during June attracts swimmers all over the world to come and experience Monaco. Herculis is the second most important Monacos international sporting events held in Louis II Stadium during July month brings together all athletes all over the world and thousands of other spectators in the country (Monte Carlo 2009).

Macao’s gaming business is falling into a relapse as there were street protest over labour and social issues on alleged corruption in Ministry of Transport and Public Works. Protestants claimed the ministry received $100 million on land deals and construction contract allocations. Gaming industry earnings increased by 40% in 2008 but that was not enough for regional development. Macao needs to follow an example of Monaco by diversifying its economy into entertainment, conventional, resorts, meetings, events and retail business. Edmund in his speech promises to improve infrastructure that would help in the regional development. Macau doesn’t have a service culture, a problem attributed from labour sectors that has failed to improve service standards to match international standard (Gafencu 2008). The Commission Against Corruption (CCAC) was established in 1999 to fight corruption. Uphold social justice among others. CCAC also provides a website where you could report on report on corruption cases. This move will help stop corruption and any money laundering activities within the country therefore making it a safe place for foreign investment therefore more employment opportunities for the citizen (CCAC 2009) (Lam 2007) (Lo Shiu 1).

Conclusion

Casino gaming has contributed majorly to Monaco’s economical sector directly and indirectly by providing a number of services to meet market demand for banking games. Online casino gaming has developed a variety of games in various languages and at reasonable rates. High tech value-added gamin online gaming has also attracted other business sectors such as banking transfers that has created job opportunities. For MICE to fully settle in Macao business industry, its government should closely regulate its local markets to make sure that they comply with business laws so as to attract investors. Convectional and meeting events should be booked at reasonable intervals and different places to avoid wasting market resources. To enable MICE start off, SAR government should set up coordination and management units, central government support, set aside funds and improve infrastructure to create favourable investment market.

Literature Matrix

Key focus Type Year Diversity Tourism Method
Virtual tourist Tourist sites Casinos
Hiking
gambling
2006 TheTaoist temples, colonial baroque architecture in Taipa’s city of Macau, the lavish parks that surrounds the city and the episodic beaches are among tourist attractions around the city yes qualitative
Grand Prix Tours Grand Prix Grand
prix
2009 Sporting activities such football and international entertainment artist such as Celine Dion. yes qualitative
Gaudiosi Gaming Online gaming 2008 Electronic arts yes qualitative
Casino-dossier Gaming -Instant Flash Casino Version 2009 Downloadable instant flash casino version with free bonuses yes qualitative
Best casino Online casino Playtech software 2006 A variety online games are offered such as slot machines, card games, tables and video games yes qualitative
Monaco Government Tourist Office Tourism Advertisement of Macao as a tourist destination. 2007 “World of Difference, the Difference is Macau” slogan helped the country source markets for tourism internationally yes qualitative
Jiawei Business investment MICE 2008 MICE industry boosted Venetian Macao by increasing its wages from 25 to 30 percent which is a positive development sign making it a favourable environment yes qualitative
Macau Daily Times Business investment MICE 2008 Macao MICE industry boosted Venetian Macao by increasing its wages from 25 to 30 percent which is a positive development sign making it a favourable environment yes qualitative
Siu Venetian Resort MICE investment into Venetian resort boosted its annual earnings to double. 2006 MICE attracted a lot of tourist all over the world making it a world-class gambling destination (p.12). yes qualitative
Gafenci Sports Tourism International sports destination sport and histing internation entertainment stars 2008 Macau government should deal with corruption and improve infrastructure that would help in the regional development yes qualitative
-G3 Casino
-Online Gambling insider
Gaming G3 onilne casino gaming with Free casino kit. -2009

-2008

G3 online casino gaming registers players in G3 draws, Free casino kit with £100 bonuses. yes qualitative
Your Monaco.com gaming Poker
Black jack , roulette
2008 Monte Carlos is the famous place for poker, black jack and roulette games yes qualitative
-Destination Macau
-Summit
Sachat
Reehorst
Tourism MICE 2009

-2006
-2007
-2008

Macau is working closely with MICE and Hong Kong’s government to construct ferry links from its airport to Macau to attract more tourists.
-In order for Macau to realize MICE benefits, it needs to improve its services, stop corruption and promote its tourism hot spots as well as hotels and casinos
yes qualitative
World Class Casino Directory gaming Gambling casino games 2008 Monaco has set up a website on online mapping on casino games and hotels locations for tourist visiting its country. yes qualitative
CCAC

Lam
Lo Shiu

Tourism Fight against corruption 2009

2007

1995

CCAC launched a website where corruption cases could be reported. This move will help stop corruption and any money laundering activities and provide a favourable environment for MICE. yes qualitative
Josh 2005 gambling activities are the biggest earners for Macau’s revenues that’s why it needs to attract investment into gaming industries to generate more revenue, MICE for instance. yes qualitative
Daley Business Corruption, prostitutions and money laundering threatens Monaco’s economy 2000 Corruption, prostitution, drugs and Russia mobs are finding their way into Monaco and threatening its economy by scaring visitors away yes qualitative
Lowtax.net business Incentive to boost local businesses and foreign investment 2009 Monaco government has set up a tax system to boost its local industries, welfare of its citizens and foreign investment to improve its economical development yes qualitative

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  21. Reehorts Paul. Macau, the new MICE Capital of Asia!. International Tourism Context. 2008.
  22. Sachat, Sritama.Macau has MICE hub ambitions. Macau’s casino operators are teaming up to turn the territory into a convectional and meeting centre by developing more conference and meeting halls. The Nation. 2007.
  23. SIU, Ricardo C. “Evolution of Macao’s casino industry from monopoly to oligopoly: Social and economical reconstruction”. Journal of Economic Issues, 40 (2006): 967-990
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  28. World Casino Directory. 2007. Welcome to Monaco. Web.
  29. YourMonaco.Com. 2008. Poker, blackjack and roulette at the Monte Carlo Casino. The Monte Carlo Casino. Web.

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