Harmen Brenninkmeijer: “To maintain its leading position, Macau should continue focusing on its strengths while also broadening its offerings”

Harmen Brenninkmeijer, chairman and managing partner of NYCE International, shares insights on Macau’s gaming market, rising competition and the future of non-gaming attractions.

Exclusive interview.- The Asian gaming market is undergoing significant changes that could reshape its landscape. With Japan’s first integrated resort due to open in 2030, Singapore and the Philippines steadily growing, and Thailand and Hong Kong considering casino and sports betting legalisation, competition is intensifying.

This evolving landscape poses a challenge for Macau, which risks losing its title as the “Las Vegas of Asia.” After the Covid-19 pandemic, the city has had to reposition itself, striving to diversify beyond gambling and stabilise its finances. To gain deeper insights into Macau’s future and the broader Asian market, Focus Gaming News spoke to Harmen Brenninkmeijer, chairman & managing partner of NYCE International and a seasoned entrepreneur in the gaming industry.

How do you think competition from other gaming hubs such as Singapore and the Philippines – and eventually Japan and Thailand – will affect Macau’s market position?

Competition from other gaming hubs like Singapore and the Philippines, as well as potential entries from Japan and Thailand, poses both challenges and opportunities for Macau’s market position. As the primary destination for mainland Chinese visitors, Macau has tailored its offerings to cater to this specific demographic. This focus has positioned Macau advantageously, especially for Hongkongers seeking convenience and for Southeast Asian tourists drawn by its unique allure.

Macau excels in providing high-quality shopping, luxurious hotels, and resort-style activities, appealing to its core market. However, while these features are attractive, they may be perceived as limited by foreign visitors, who often seek a broader range of entertainment options. The Macau government recognises this gap and aims to diversify attractions by introducing more Vegas-style entertainment, including Asian cultural shows, art exhibitions, and various cultural activities.

As competition increases from other gaming destinations, which might offer more diverse entertainment and cultural experiences, Macau must remain proactive in enhancing its appeal. While it currently thrives through its strong Chinese market, the growing expectations from foreign travellers highlight the need for innovation and expansion beyond casinos. To maintain its leading position, Macau should continue focusing on its strengths while also broadening its offerings to satisfy a wider audience, thus reinforcing its status as a premier gaming and entertainment destination in Asia.

“As competition increases from other gaming destinations, which might offer more diverse entertainment and cultural experiences, Macau must remain proactive in enhancing its appeal.”

Harmen Brenninkmeijer, chairman and managing partner of NYCE International.

With Macau’s increasing diversification efforts, what role do you see non-gaming attractions playing in sustaining long-term growth?

Non-gaming attractions will play a crucial role in sustaining Macau’s long-term growth, particularly as the government aims to create a more diversified tourism experience. However, current diversification efforts have been constrained by several factors, including the limited license renewal periods, which create hesitance among investors. The uncertainty surrounding the possibility of licence revocation discourages large-scale investments in infrastructure and non-gaming projects.

Moreover, understanding the unique preferences of Chinese visitors is essential. The demand is often geared towards private rooms, VIP experiences, and culinary offerings, which differ from the expectations of leisure-focused tourists looking for broader entertainment options. This highlights the need for tailored development that addresses both local needs and international tourists’ desires.

To foster a more appealing environment, a comprehensive master plan could be beneficial. Creating larger, walkable areas that incorporate entertainment, shade, and cooling elements can significantly enhance the visitor experience. Inspired by the concept of Fremont Street in Las Vegas, Macau could develop pedestrian-friendly zones where guests can seamlessly transition between various properties and attractions. This approach would not only enhance the overall experience, making it more relaxing and enjoyable, but would also encourage visitors to explore the entirety of what Macau has to offer.

Furthermore, incorporating elements that promote leisure, such as green spaces or shaded rest areas, would distinguish Macau from other Asian cities, many of which haven’t fully embraced such walkable experiences. By prioritising non-gaming attractions and focusing on creating an inviting, multifaceted urban landscape, Macau can strengthen its market position and appeal to a wider audience, driving sustainable long-term growth.

How do you think the White House’s decision to classify Macau as a “foreign adversary” could affect Macau’s gaming industry and its relationship with US-based operators?

The White House’s classification of Macau as a “foreign adversary” could indeed have far-reaching economic implications, but my perspective is that it will not negatively impact Macau’s gaming industry. Especially, given that the primary source of visitors to Macau is from mainland China and Hong Kong, the geopolitical tensions affecting U.S.-China relations may lead to a decrease in American tourism to Asia. This shift could redirect spending toward local destinations like Macau, where visitors may feel more at ease.

Macau has historically not relied heavily on American tourists, and the operators in the region have adeptly adapted their business models to cater to Asian clientele. This adaptability positions Macau’s gaming industry well to weather changes resulting from U.S. policies. The focus on understanding and catering to Asian preferences—whether in gaming experiences, dining, or entertainment—has enabled Macau to thrive despite external pressures.

Additionally, the current climate of U.S. isolationism and rising anti-Chinese sentiment could unintentionally bolster local tourism within Asia. As international visitors reconsider their travel plans, more people may opt to explore destinations closer to home, thus enhancing Macau’s attractiveness among regional tourists.

Overall, while tensions between the U.S. and China may complicate some relationships, Macau’s reliance on its core customer base—Chinese visitors—along with its ability to adapt and cultivate a unique regional appeal, could ultimately result in a more robust local tourism environment, strengthening the city’s gaming sector in the long run.

Given the increasing competition in the land-based sector, do you think online gambling regulation could play an important role in Macau’s future?

The potential for online gambling regulation in Macau to facilitate access for a broader range of players, particularly mainland Chinese individuals, does present an intriguing opportunity for significant economic growth. Allowing people to open accounts, play online, and withdraw winnings only when in Macau could indeed generate substantial revenue, possibly amounting to billions (20 billion plus would be my guess).

However, the complexities surrounding such a vision point to significant challenges. First and foremost, the Chinese government’s stringent regulations and control over online gambling make the likelihood of such a framework being implemented in Macau remote. If the Chinese government were to consider expanding online gambling opportunities, it would likely take the initiative to ensure stringent control and oversight.

Moreover, while the idea of opening online gambling to non-residents seems financially promising, the projection that online accounts could exceed Macau’s population raises concerns. It would have potential legal and regulatory complications. The rush to open accounts could lead to problems with money laundering and other illicit activities, prompting heightened scrutiny and potential backlash from regulators.

Confining online gambling to Macanese residents will yield a smaller market, but it might also present a more manageable and sustainable environment, allowing for responsible expansion without overwhelming regulatory frameworks.

In essence, while the vision of a booming online gambling sector that includes mainland Chinese players could yield significant financial benefits for Macau, the regulatory landscape and existing restrictions make it a challenging proposition. If such a model were ever to be considered, it would undoubtedly require careful planning, collaboration with the Chinese government, and robust mechanisms to ensure compliance and safety in the gambling ecosystem.

What impact could the potential legalisation of casino gaming in Thailand have on the broader Asian gaming market?

The potential legalisation of casino gaming in Thailand could indeed transform the broader Asian gaming market, positioning Thailand as a significant powerhouse in the entertainment sector. Bangkok, already a bustling hub attracting millions of tourists yearly, has the infrastructure, hospitality experience, and vibrant culture to complement a burgeoning casino industry.

With the infusion of casino gaming, Thailand could elevate its appeal to both regional and international visitors. The incorporation of high-end casinos would not only enhance entertainment options but also attract investments in infrastructure, including hotels, restaurants, and entertainment venues, leading to a substantial increase in tourism overall. 

Furthermore, the emergence of Thailand as a major gaming destination will impact other existing markets, such as Macau and Singapore, provided the right projects are launched, specifically its Bangkok Casino. As Thailand develops its gaming attractions, it could draw some of the traffic away from these established hubs, particularly visitors looking for new experiences or more competitive prices. Additionally, Thailand’s ability to offer a diverse range of attractions—from cultural shows to outdoor adventures—could appeal to a broader audience, balancing the gaming focus with rich local experiences.

“With the infusion of casino gaming, Thailand could elevate its appeal to both regional and international visitors.”

Harmen Brenninkmeijer, chairman and managing partner of NYCE International.

The marketing and branding efforts that would accompany the development of casinos could further enhance Thailand’s image as an entertainment capital, attracting not only gamblers but also families and leisure travellers seeking a multifaceted vacation.

The key to this would require careful regulatory planning to ensure that the industry develops responsibly, mitigating potential social risks associated with gambling. If executed thoughtfully, with a focus on sustainability and cultural preservation, the legalisation of casinos in Thailand has the potential to reshape the regional gaming landscape and solidify its place as a premier destination for entertainment in Asia.

Harmen Brenninkmeijer, chairman and managing partner of NYCE International, shares insights on Macau’s gaming market, rising competition and the future of non-gaming attractions. Exclusive interview.- The Asian gaming market is…