Five internal marketing approaches to combat Macau's labor shortage

Date of this Version

November 2006

Document Type

Conference Paper

Publication Details

Kale, Sudhir H. and De, Sangita (2006) Five Internal Marketing Approaches to Combat Macau's Labor Shortage was presented at the Third International Conference on Gaming Industry and Public Welfare 2006, 17-19 November 2006, Beijing.
To obtain a copy of this presentation contact the Third International Conference of Gaming Industry and Public Welfare 2006

2006 HERDC submission


Gaming scholars the world over are in consensus about Macau's bright future as a gaming Mecca. Indeed, the events in Macau over the last three years have surpassed the expectations of even the most optimistic gaming observers. Tourist arrivals in Macau increased from around 10.3 million in 2001 to 18.7 million in 2005. Total gaming revenues increased from MOP 19.5 billion in 2001 to almost MOP 46 billion in 2005.

This phenomenal growth has created an acute labor shortage in the SAR. Around twenty additional gaming and hotel projects have been committed so far, all slated for completion in the next five years. These new facilities will be major drivers for Macau's economy in the coming decades. However, expansion on such scale will create intense competition among employers to recruit and retain employees, particularly if the current restrictions on importing labor into the area are maintained.

One, and arguably the only way to hire and retain quality manpower in the dynamic gaming market of Macau, is practising internal marketing. Employee-focused internal marketing involves marketing or promoting the service establishment to the workforce on the assumption that employees have to buy the organization and their roles within it before they can start to market its services to external customers.

Internal marketing has been directly linked to employee satisfaction, which in turn is linked to customer satisfaction. Customer satisfaction is a prerequisite to superior business performance. Thus, internal marketing enhances both customer loyalty and employee loyalty.

This paper suggests five main approaches to combat Macau's labor shortage: competing for best personnel, integrating employees in company vision, hiring for competencies and service inclination, providing supportive infrastructure, and measuriing and rewarding performance.

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This document has been peer reviewed.