All bets are on Macau hotels | By Jonathan Barsky and Lenny Nash

Last year, Macau overtook the Las Vegas Strip as the world’s No. 1 gaming revenue market. But how are casino hotels in Macau handling this growth? Can they keep up with new competitors in Asia and how do they compare to legendary Las Vegas?

While major casinos in Las Vegas have been hit hard by weak consumer spending and sharply declining hotel rates, Asian gambling has started to grow again. As Asia surges out of the Great Recession, hotels in Macau and the Asia Pacific region lead the world in terms of occupancy recovery with double–digit growth. Known worldwide as the “Monte Carlo of the Orient”, Macau is Asia’s largest destination for gambling and now takes in more gambling revenue than Las Vegas. One big factor is location — there are over a billion potential gamers within a two–hour flight of Macau. Macau is also the only location in China with legalized gaming.

But what is the guest perception of Macau’s casino hotels? The following table provides scores based on guest perceptions of the top 10 casino hotels in Macau and Las Vegas.

Customer Satisfaction: Las Vegas vs. Macau

Las Vegas has earned a global reputation for its lavish casino resorts. New properties such as Encore and The Palazzo have taken the Las Vegas guest experience to the next level. But Macau is keeping up. New Casinos in Macau are attracting gamblers from all over the world. From a face lift of the historical Lisboa to the posh Mandarin Oriental, Macau casinos are now neck and neck with Las Vegas in terms of overall customer satisfaction. In fact, the top 10 Macau casino hotels received higher scores for ‘Rooms’ and ‘Cleanliness’. Conversely, guests rated Las Vegas higher in ‘Service’, ‘Location’ and ‘Value’.

Other differences remain between these two casino mega-markets. Macau’s hotel industry depends much more on gaming revenue. In Macau, 70% to 80% of casino operators’ revenue comes from gaming. Contrast that with Las Vegas, where more than half of revenue comes from other sources such as hotel rooms, restaurants, conventions, and shopping malls. This opportunity, however, is not being overlooked in Macau. There is a new development on the Cotai Strip, referred to as “The Las Vegas Strip of the East”. The huge Venetian Macau opened its doors in August 2007 and the not-much-smaller City of Dreams followed in 2009, with many others planned. But Singapore and South Korea also offer great casino resort options with more on the way. South Korea’s Jeju Island, which has eight casinos, could become Asia’s next casino gaming giant. Japan and Taiwan are also considering legislation to legalize casino gambling.

While Macau hotels are currently filling rooms, often with premium pricing, this may be hard to maintain. Guests are harder to satisfy when they return, and as room supply swells and competition heats up, Macau hoteliers will have to work even harder to provide value. But as part of the fastest-growing gaming market in the world, the odds are with Macau.

About Market Metrix | Market Metrix is helping hospitality companies around the world succeed in the tough economy. With guest feedback collected 24/7/365, and built-in service recovery and investment decision support tools, we help clients save money and reduce risk of client defections. Based on award-winning research and breakthrough concepts, our SaaS-based products deliver instant survey results, analysis, and management tools for increasing revenue and reducing staff turnover. Our benchmarking database, MMHI, is the most comprehensive, independent comparison of consumer brand satisfaction in the industry. Our annual MMHI Awards are coveted by lodging and travel enterprises around the world. With clients that include more than 120 brands across 70 countries, Market Metrix has been helping leading hospitality companies turn feedback into performance since 1996. Visit www.marketmetrix.com.