Private Sector Challenges and Opportunities Inherent in Advancing the Complete Visitor Economy (CVE)

Presentation by Ms. Pansy Ho, Managing Director of Shun Tak Holdings Limited

Interconnection and interdependence

TourismHospitality

Infrastructure

Transport

Education & Training

Retail

Manufacturing

Food &Beverage

Technology

Telecommunications

Energy

Construction

Land & Properties

Entertainment Marketing & PR

Macau: A Perfect Epitome

Macau Economy Structure

Source: WTTC Travel & Toursim Economic Impact 2012 - Macau

Direct GDP Contributionfrom Travel & Tourism

Direct & Indirect GDP Contributionfrom Travel & Tourism

A Supportive Government

Private

CVE as lever of growthLiberalization

of Gaming

1 = US$1B GDP of Macau

Year

2006 20072001 2002 2011200920082004

Macau Overtaking Las Vegas

in Gaming Revenue

1999 2003

Establishment of Macau SAR

2012

SARS Outbreak

1st case in Hong Kong

CVE as recovery vehicle: SARS1st case in Guangdong

World Health Organization (WHO)

Issued Global Alert

Recommended to screen of airline passengers

Nov 2002 Mar 2003 Apr 2003

Individuals from 37 regions infected

1st case in Hong Kong

Unprecedented drop in visitor arrivals

Month

In April, May and June 2003, Macau experienced a 33.8%, 36.8% and 5.4% yoy drop in visitor numbers.

Post crisis recovery: public and private alliance

“Public Sector”

• Coordinated efforts from the tourism industry• Post-crisis marketing and communication• Provided subsidy•Formulated recovery policy & strategies

“Private Sector”

• Complemented the Government’s strategies and initiatives• Stayed open and be creative• Polled together resources of various industries and companies• Cross-industry promotional offers

“Macau’s So Cool” Campaign

• Led by the private sector

• Primary objective involves remobilizing visitor traffic

• Followed by cross-industries promotions

• Encourage spending through discounts and lucky draws

• A US$6.3M campaign

• shopping discounts, music festivals, lucky draw etc.

• Tourism facility improvements

“Macau Welcomes You in Summer” Campaign

Restoration

Thank you!