As of 2023, the biggest story in the gaming industry is Macau's revival, which could be delayed by labor shortages.
The Special Administrative Region (SAR), which has been temporarily closed for three years and stagnant business, has fully reopened this year as China eased some of the world's toughest coronavirus restrictions.The tourist-dependent gaming industry is booming again.However, operators do not have enough labor to fully supply the cabins.
Some five-star hotels in Macau have less than half of their rooms on the market, and some do not offer daily housekeeping services due to staff shortages. , Bloomberg reported late Tuesday, citing people familiar with the matter.The article did not mention specific facilities affected by the labor shortage.
The six Macau concessionaires are Galaxy Entertainment, Melco Resorts & Entertainment, MGM China, Sands China, SJM Holdings and Wynn Macau.All of these companies operate at least one casino hotel with five-star ratings from various travel and leisure reviewers.
Some operators can cope with Macau's labor shortage
The impact of Macau's shallow labor pool is far-reaching, but its impact is non-linear across all six gaming operators.
Some analysts believe Sands China and Wynn Macau will be able to take market share from their rivals by not embarking on mass layoffs in the early stages of the pandemic.The two companies operate seven of Macau's integrated resorts, some of which also have a five-star designation.
Another issue facing concessionaires is the professional orientation of Macau's people.Macau people who work in the gaming industry want jobs such as dealers, pit bosses or back offices.Conversely, low-level jobs such as housekeepers and restaurants are avoided.
As such, operators rely on workers from mainland China and Southeast Asia for these jobs.However, according to Bloomberg, 4 non-local employees have been laid off since the start of the pandemic.
Other Issues Exacerbating Labor Shortages
Other problems exacerbate Macau's labor shortage.Gaming companies have to deal with lengthy approval procedures for non-Chinese residents to enter the Special Administrative Region to work in casino hotels.
Additionally, many of the mainland Chinese and Southeast Asian workers who were customer-facing prior to the pandemic have moved to other industries in China or worked at gaming venues in Singapore and Vietnam.
Not being able to sell many rooms, operators are increasing the price of the rooms they can sell.However, it is inconvenient for consumers.Some travelers to Macau are unhappy with the room rates.Also, some people who try to visit Macau think that they don't get a good deal because they don't get the service they pay for.
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