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ISSUE 96 - Apr 2012
 
 
What are your expectations for the gross gaming revenue growth of Macau’s gaming industry in 2012?
Decline
Growth above 20 percent
Growth from 10 to 20 percent
Stagnation
 
 

Grooming for the future

Issue 19 (11/2005)
Posted: 8/13/2009 4:06:58 PM
Rating:     96% (5 votes)
  

As the number of concessions increased from one to six, Macau residents gradually became wary of the sudden influx of visitors – especially mainland Chinese and foreign workers. Today, there are 32 casinos and the gaming industry currently employs around 20 percent of the total available local labour force (330,000 in 2008).
However, the expanded gaming market has brought much pain and discomfort to local businesses and residents.
These are commonly documented in the media. Businesses make futile attempts to compete with casinos for staff, while the city’s infrastructure groans under the increasing number of visitors.
Despite these problems, the expanded gaming market has handed the younger generation of Macanese a golden opportunity to prosper, working in world-class establishments like the Venetian and Wynn resorts, Four Seasons and Hard Rock hotels.
While the median monthly salary in Macau was around US$1,000 in 2008, against only US$600 in 2003, those working in the gaming industry fetched a median of around US$1,625. More precisely, the average earning of full-time employees in Macau’s gaming industry was around US$1,950 in December 2008.
The city’s younger generation has joined the casino industry in numbers not seen in the past. This is despite objections from some Macanese parents.
Many parents lived through days of violence, as triads battled over their share of the gaming business. Young Macanese can now opt to become a dealer instead of continuing their education or pursuing other career paths. The reason is pure and simple: the money is good plus you have the privilege of working in a reputable Las Vegas company.
The rapidly expanding economy has led to property price inflation, increasing in leaps-and-bounds since liberalisation. The young fear that they will lose out on acquiring a place of their own if they do not start earning earlier. Perhaps this was why, when I was teaching at the University of Macau, so many of my students – 80 percent – actually worked part-time while studying full-time at the university.
In many cases, they enrolled themselves as full-time students but were actually studying “part-time” and working “full-time”. I remember making my regular visit to The Sands late one evening and meeting one of my marketing students. He was dealing cards. His shift ended late that night and he had to attend my class early the next morning. He looked tired when we chatted briefly, but happy that he had a good-paying job even before graduation.
Needless to say, as a result, there is a lot of negativity coming from Macanese adults. For years, many told their kids not to join the “sleazy’’ casino gaming industry.
A Chinese article written in a local newspaper a few years back argued that Macau would become a city without lawyers, doctors, and engineers because the young had chosen to abandon their lives to join the casinos. According to the author, this would be a sad day for Macau.
The casinos also took vital labour resources from the older employed population in Macau. I remembered talking to an old lady cleaner for my apartment block. She complained that all the other younger cleaners had left to work for the new casinos because the salary and working environment were much better; it was also more prestigious to clean a “Las Vegas-style” casino than an apartment block.
The same happened to the security guards in my apartment block. Those who were left behind were either too old, too slow, or simply preferred the peaceful life of working in a private residential property.
While the parents, local businesses, and society struggle to accept these relatively recent changes, the young gaming executives and dealers of Macau have their own set of problems.
Fresh out of school, some of these young people joined the casino industry with aspirations to pursue a career. Others, however, just see it merely as a chance to earn bigger bucks and work in a “nice” western-style environment. In the past, such an opportunity to work in top Las Vegas-style gaming resort was almost impossible for the Macanese, young or old.
However, some were unimpressed. Differences in management style and the corporate culture of western companies, coupled with the unreasonable expectations of young, inexperienced Macanese, led to discord between them and their casino employers.
As more and more expatriates left, the “more experienced” young Macanese have started to fill these vacant managerial positions. Those who joined the industry during the earliest period, immediately after liberalization, have now become the “experienced” casino gaming executives. In other jurisdictions, such a title takes many more years to earn.
Prior to joining the casino industry, many of these young Macanese had never worked before. A combination of youth and a lack of prior work experience have created issues and difficulties that these Macanese must now face.
With empowerment comes greater responsibilities. However, many Macanese are still ill-prepared for the hectic work schedule and rowdy Chinese gamblers.
Moreover, the race to open casinos on time has meant many did not receive adequate training. They learn on the go. For instance, I was in Wynn casino on its opening day and found that some supervisors were still training their young dealers while guests walked around. There were rumours that experienced Chinese gamblers and cheats were moving from table to table, preying on inexperienced Macanese dealers.
In 2007, I conducted a course for a group of around 50, mostly local casino executives, and they highlighted the difficulty of managing their inexperienced, unmotivated, unqualified, and poorly-trained junior dealers.
I have experienced similarly situations in the past. As a Singaporean, I was enlisted into national service (army) at the age of 18. I have seen how others, including myself, were given positions to manage large groups of people at a young age.
The empowerment motivated us but our inexperience and immaturity often affected our judgment. We led others by following the examples of our seniors, without questioning the rationale of some of their behavior.
This is what is happening to young gaming executives in Macau. With the departure of more expatriates, there are no real “seniors” that young Macanese can emulate. They have to depend on themselves and trust their own judgment; be it right or wrong.
What is more worrisome is that young and inexperienced Macanese are found to be susceptible to gambling influence and harm. After working on the gaming floor for a couple of months, some feel that they have the necessary skills to beat the house.
They gamble privately or in other casinos and incur huge gambling debts. One recent study has found that the rate of pathological gambling among dealers is several times higher than in the general population.
In conclusion, young Macanese who have joined the gaming industry over the past few years need more guidance, education, and training than they are currently being given. The Macau government and casinos have continued to advocate further training for local employees. The capacity to think and react effectively to different business situations however, takes time and experience.
Moreover, for the time being, professional guidance and leadership plays a key role. These are areas in which experienced expatriates can add value to Macau. The city’s experience in regards to the employment and empowerment of young local residents provides valuable lessons to all newly emerging casino gaming jurisdictions in Asia such as Singapore and Taiwan. These lessons must be learned and remembered.

Desmond Lam
Visiting senior research fellow at the School of Marketing, University of South Australia



Headlines

Facts on Figure April 2010

Home truths

A comprehensive study into Macau's property market says flexibility and caution should be the watchwords as officials shape the future of public and private housing. But most of all, home ownership should be promoted.

Lap of luxury

The Waterside in One Central on the edge of Nam Van Lake is the jewel in the crown of Macau Property Opportunities Funds portfolio. Leasing has just started and prospects are looking good .

Winning bet

A couple of hiccups aside, the Macau Property Opportunities Fund has sailed through the global financial crisis, seeing its asset value increase. The company believes its investment choices have left them well positioned. A Hong Kong listing would make sense, they say, but investors will have the final say.
Other Macau Latest News

More than just gaming

MGM is still waiting for Cotai approval, but Grant Bowie reiterates that it will go beyond just gaming

Okada on ‘fishing expedition’

Wynn’s lawyers accuse the Japanese businessman of trying to find improper acts, which they say never happened

Galaxy to sponsor volleyball tournament

The gaming operator is again backing the Macau stage of the FIVB Volleyball World Grand Prix

New border crossing could drive up shop prices

Property experts say prices in Ilha Verde area could go up 10-fold

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