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Labor Pains

Ryan Hong-Wai Ho by Ryan Hong-Wai Ho
Thu 30 Mar 2023 at 16:35
Labor Pains
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Ryan Hong-Wai Ho, lecturer at the Centre for Gaming and Tourism Studies at Macao Polytechnic University, takes a look at the labor shortage that is currently slowing Macau’s recovery.

Macau’s gaming and tourism sector is rebounding at an extraordinary speed! Amidst the global macroeconomic uncertainty, local casinos and tourism-related businesses have seen positive signs of recovery fueled by the lifting of pandemic restrictions, full border reopening and tourism stimulus campaigns.

Though COVID-19 has not gone away, we are seeing the light at the end of the pandemic tunnel. Still, let’s hold our horses and ask: What is on the other side?

Certainly a labor shortage is among the key challenges facing the gaming concessionaires and the industry at large.

READY FOR THE HUSTLE AND BUSTLE?

Gaming concessionaires have just recorded their best quarter since the start of the pandemic. Macau is back to the hustle and bustle, and concessionaires are aggressively adjusting their operations to meet the pent-up demand for travel and entertainment. In particular, the Chinese New Year holiday in January saw a sharp increase in foot traffic and business turnover across casino resorts. The holding company of a concessionaire indicated in its recent securities filing that mass-market table drop during the CNY period across its Macau casinos almost rebounded (95%) to levels seen in 2019. Despite the positive momentum, the “Big Six” have been on the lookout for talent to fill the non-gaming vacancies.

SERVICE STAFF CRUNCH

Leisure and business travelers are gradually resuming their pre-pandemic habits. But with the gaming industry’s strong recovery, the hotels and other associated operations under the same roof might not keep up with the increased demand. Some hotel operators might feel sheepish about celebrating their recent financial success, given their ability to receive guests is not back to full capacity. While patrons are busy playing at the tables, concessionaires are faced with a high-stakes shortage of labor across their day-to-day operations.

PROSPEROUS GAMING CAREER

Table games dealers are the backbone of gaming operations in casinos. They are skilled employees responsible for the administration and protection of the games on the frontline. As per the latest official data (late 2022), there were 23,721 dealers in Macau earning an average salary of MOP$19,800 (US$2,475) per month. The six concessionaires have practically maintained a freeze on hiring dealers since the early days of the pandemic.

In February, one operator, MGM China, began to mass-recruit dealers in light of being awarded an additional 200 gaming tables by the government. Upon successful completion of training, a prospective dealer is going to take home a competitive salary package, which is basically in line with market pay levels. This “Macau residents-only” hiring event drew a huge turnout to try their luck, and applicants consisted of everyone from up-and-coming practitioners to industry veterans.

THE QUEST FOR HOSPITALITY TALENT

Unfortunately, hotel operations are not afforded the same luxury. Concessionaires and some satellite casino managers might have more of a struggle to fill the service-related jobs on their properties, compared to their high-paying gaming positions. It was reported that a concessionaire was forced to keep 2,200 guest rooms closed during the golden CNY holiday, primarily due to a lack of adequate staff.

NOT ALL JOBS ARE CREATED EQUAL

The “Big Six” and others are desperately seeking to restaff their hotel vacancies from foreign and domestic talent pools. In addition to importing qualified labor from outside, most concessionaires have been hosting a series of job fairs to attract and acquire potential new hires. Industry sources indicate that it has been a struggle to fill hotel vacancies as there is a scarcity of applicants willing to work in non-gaming roles.

Hoteliers have persistent difficulty attracting enough local citizens to jump on the “return to normalcy” bandwagon. There are job openings across various roles, including front office, housekeeping, food and beverage services, and others. Take room attendants, for instance. The average monthly salary for this housekeeping position was MOP$9,620 (US$1,200) in the third quarter of 2022. The starting salary is currently in the range of MOP$10,000 to MOP$11,000 (USD$1,250 to US$1,375) among major hotel brands.

OPPORTUNITY IS GIVEN TO THOSE…

The Big Six are hungry for hotel workers and the like. There is an inside joke among HR recruiters and line managers that goes something like this: “Whoever can breathe will be hired!”. The local gaming and tourism sector is yet to return to full normalcy. The upcoming May Day Golden Week will put the Big Six’s operational readiness to the test. The labor shortage in hospitality can lead to subpar service quality and higher customer dissatisfaction, not to mention lost business opportunities. Understaffing can further impede the industry from recovering and thriving in a sustainable way.

BUILDING A VERSATILE WORKFORCE

In addition to talent acquisition with competitive compensation concessionaires can consider temporarily moving service-oriented employees between roles to alleviate the understaffing in non-gaming operations. Some concessionaires have already rolled out horizontal development and cross-functional exposure programs within their organizations. Gaming employees can apply to take up new responsibilities outside casinos for a short while, and some have even opted for a career change after such internal opportunities.

Non-gaming development is the focus of the new 10-year gaming concessions. With a voluntary job rotation system, concessionaires can further reskill (and upskill) their workforce by systematically rotating promising employees from one job to another. While keeping employees motivated with horizontal/upward career paths, concessionaires can foster talent diversification and build a versatile workforce ready for the advancement of leisure-based operations.

Tags: centre for gaming and tourism studiesCurrent IssueMacao Polytechnic UniversityRyan Hotourism
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Ryan Hong-Wai Ho

Ryan Hong-Wai Ho

Ryan Hong-Wai Ho is a lecturer at the Centre for Gaming and Tourism Studies, Macao Polytechnic University. Prior to his academic career, He held various positions in gaming and finance. His research interests are gaming policy and regulation, casino operations, and human resources in tourism and hospitality. The author can be contacted at: ryanho@mpu.edu.mo.

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