“The pressure on the Macau Government to diversify the economy is a huge opportunity for UK companies”

As Macau demands more diversification from casino operators, the UK is betting on getting into the leisure and entertainment sector. Frances Moffett?Kouadio, the UK Trade and Investment (UKTI) Commissioner to Hong Kong & Macau led a mission of 18 UK companies to the MSAR last week. She says this is just the beginning, with Hengqin likely next after exploring opportunities in the entertainment, education, and healthcare sectors of Macau
Luís Gonçalves
[email protected]
Photos: Cheong Kam Ka
What kind of companies has the UKTI brought in this mission to Macau?
We brought 18 companies in this mission. One of them was already working here in Macau, with The Venetian, for example. But, the rest were first-timers and came to learn and study the market. It’s a diverse mixture of companies and experiences. All of them are an exciting range of people, with completely new ideas. We had designers, virtual reality, digital media, finance services to management of festivals and big events.
How was the selection of these companies made by UKTI?
The UK Trade & Investment look for what we call high value opportunities. In Macau, we recognised that with the Chinese government crackdown on corruption, the big casino resorts were being asked by the local authorities to expand their non-gaming activity much more, and towards entertainment and leisure. This created good opportunities for UK companies. From all the companies that applied to come on this UKTI mission, we handpicked the ones that we thought were more extremely relevant to Macau.
Is this the first UKTI mission to focus on non-gaming opportunities here?
No. Last year, we brought a similar mission to Macau with very good results. Since then, we have done a series of events for UK companies to talk about and explain the opportunities in Macau.
Were any agreements made?
Not that I’m aware of. But there’s at least one company that’s already working here with The Venetian, and they came back for this mission. They’re probably searching to do something new, something different.
For the UKTI, current high value opportunities revolve around the casino operators’ business?
Yes.
Have the casino operators made any demands or requests?
No, not at all. The gaming operators didn’t proactively ask if we could help on something. We just contacted them and showcased what the companies have to offer. Hopefully, some agreements will be made. But it’s us that have to find the opportunities among the resorts here and some UK companies are already established here.
How have the current changes in Macau – the corruption crackdown, declining gaming revenues, contracting economy – affected the mission?
I don’t really see Macau in crisis. I know revenues are lower than a year ago and profits are suffering. But, if you think that The Venetian made more money in the first six weeks of the year here than in a full year in Las Vegas, we have to put the word crisis in context. The pressure on the Macau Government to diversify the economy is a huge opportunity.
Beyond entertainment, as well?
Yes. There are a lot of fields like culture, architecture, education, healthcare.
Future UKTI missions here will have a broader focus besides the casino resorts?
For sure. We’re thinking about how can you explore new businesses here for UK companies. We’re also thinking how can we evolve UK’s National Health Service (NHS) for healthcare, optical development to explore the Hengqin area across the border. With Macau’s population growing so fast, the city and bordering areas will need schools, hospitals. And as the new casino resorts grow, more international people will come here.
With the entertainment sector the first non-gaming opportunity, what will follow?
Education and health, for sure. There are already a lot of UK companies working here in infrastructure and I think a lot more could work with the Macau Government to support local economic diversification.
And regarding opportunities for Macau companies in the UK?
We hold a special event every year for police officers. For the first time, in March of this year, we took a delegation from the Macau police to this security event. There are also opportunities for professional development, F&B, fashion. Chinese consumers want the next big thing in terms of fashion, for example. And Macau people also love cars as we see here. So there’s a lot of opportunities for partnerships and technology transfers between local and UK companies.
Macau is suffering several delays in some of its major infrastructure projects. Isn’t this also an opportunity for the UK to sell know-how?
I think, like many countries, the UK has learned a lot from its mistakes. We’ve got a lot of public private relationships in big projects and some UK companies are already working here in construction, engineering and architecture.
What are the major challenges for UK firms working here?
I still don’t have that much experience working here but my assessment is that Macau people are very open to working with foreign companies
The UK exported £53 billion-worth of goods to Macau last year. What’s the outlook for 2015?
I don’t have the exact figures but it’s definitely increasing and keeps going up. The UK Government has a goal of achieving exports of £1 trillion by 2020. So, there’s a lot of pressure on us and British companies to make an additional effort to achieve this goal. Macau presents itself as a huge opportunity to reach this target of £1 trillion in goods sold abroad.
How does the future look for the UK and Macau in terms of economic and business relationships?
Our relationship will deepen. The UK companies that are already here are highly valuable and will encourage more business to come here and invest in the future. Also, the relationship between the UK government with local authorities will also be much stronger; it’s planned to bring some UK ministries here in September.
Broad business brushstrokes
Mark Braddock
Managing Director
Zazz Projects Ltd.
“We can offer expertise on ‘how to’ set up and manage the leisure industry”
What projects are you looking at in Macau?
We’re a management consultancy company for the leisure industry. We help professionals plan, co-ordinate and manage attractions, events and festivals. So, in Macau we’re looking into theme parks, events and festivals where we can offer expertise on ‘how to’ set up and manage the leisure industry. It is a bit like the soft side of infrastructure projects. Once you build the theme park, for example, you need to think about how to manage it, how to train your staff and how to do catering etc. Those things are what we’re good at.
Are there any partnerships or businesses in the pipeline for your company here?
No. we haven’t done any business in Macau yet. But we have done projects in the UK, Middle and Far East, Australia and Europe. Our partner HB Leisure has a distinguished partner list of many of the world’s leading theme park brands such as the Legoland Parks, Alton towers, Blackpool Pleasure Beach etc. We’re excited about the opportunities in Macau and confident that we can offer our expertise.
How do you evaluate this UKTI Mission to Macau?
This trip was very well organised by UKIT Hong Kong. We’ve met up with decision makers and high-level professionals who are very related to our business, thanks to UKTI’s introduction and set-up.
Robin Auld
Senior Consultant
Theatreplan
“We’re interested in casino operators’ future phase development in Macau”
What projects are you looking at in Macau?
Theatreplan is a specialist consultancy providing advisory and design services to performing arts companies, venue management, architects, project managers and engineers. We specialise in creating theatres, opera houses and music venues, conference centres and education facilities in existing and listed buildings. So we’re interested in casino operators’ future phase development in Macau (e.g.) building theatres, opera houses, musical venues etc. We would like to support the diversity of Macau.
Are there any partnerships or businesses in the pipeline for your company here?
We haven’t started in Macau but we’re working on West Kowloon Culture District projects in Hong Kong, such as Black Box Theatre. We started the projects in June 2014, exactly one year ago. I’m based in Hong Kong so I’m very close to Macau and would love to explore any projects here.
How do you evaluate this UKTI Mission to Macau?
I’ve always found trade missions organised by UKTI Hong Kong to be very useful. I always got a lot out of it. I did a trade mission organised by them to Taiwan in 2013, absolutely enjoyed it. UKTI Hong Kong offers their networks and expertise to us, which is a bit like giving you the keys to unknown markets. They’re also good at matching business partners.
Stephen Browning
Managing Director
Stephen Browning Associates
“We’re looking for big art projects in Macau”
What projects are you looking at in Macau?
We’re a cross-arts management consultancy for the culture sector, working with arts and heritage organisations of all scales, helping them to innovate, to change and to flourish. We provide a range of services including strategic planning, feasibility studies and organisational reviews etc. We’re looking for big art projects in Macau and would like to provide strategic planning and business plan at a very early stage.
Are there any partnerships or businesses in the pipeline for your company here?
No, not yet. But we have done projects in Kuala Lumpur, a major feasibility study for a new arts centre there and advised the London legacy development corporation on the new cultural quarter in the Olympic Park. Our clients include Arts Council England, the British Film Institute and Visit Britain etc. We are interested in entering the Macau market and working with talent here.
How do you evaluate this UKTI Mission to Macau?
This trip has been very valuable and interesting to me. We looked at a lot of facilities and met with very important people. UKTI Hong Kong has done such a good job for us. I think they really understand the market and where our service/expertise fit in the local market.