However, despite of Macau’s phenomenal growth, it is essential for government to come up with a competitive and thoughtful tourism plan to remain competitive, especially considering the rapid rise of other competitors such as Singapore (Bureau, 2005).
PESTLE Analysis of Macau Travel and tourism industry
Political: Political environment of Macau is controlled by Chinese government. Being a Special Administrative Region (SAR) of China, Macau has been able to maintain its autonomy. Pro-tourism policy by the administration of the region has enabled the region to gain significant momentum in developing the tourism industry. For example, government realized the potential of Macau as a tourism destination that is why it legalized the gaming industry in 2002. This resulted in huge tourism boost for the region post 2002.
Economical: Economy in Macau is majorly based on the tourism industry, and much of it is tilted towards gambling industry. In 1990s, Macau had 9 casinos which were responsible for contributing more than 25% of total GDP of Macau. With monopoly ending in 2001-2002, gambling industry has seen several Las Vegas based gambling operators entering Macau. This has revolutionized the tourism sector indirectly with visitors coming from all parts of globe to experience the tourism in Macau.
Social: Although travel and tourism has resulted into rapid rise in economy of Macau, it has also resulted into various social conflicts within the society of Macau. There is one segment in Macau’s society which has benefited from the tourism industry, whereas there is another section of society which is still living in average conditions. This disparity at times results in social conflicts and various other issues. Also gambling industry to a large extent has corrupted the youth of the region who occasionally indulge in gambling activities for making quick money (Gu & Gao, 2012).