Just as growth was returning to Macau after moves by the Chinese government had slowed the gambling zone's economic boom, a new leader for the former Portugese colony brings uncertainty regarding sustaining the recent rise. Fernando Chui took over as Macau chief executive today, with orders from Chinese superiors to rein in growth spurts and find other means for expansion than just casino gambling.Macau had seen double-digit growth for the first few years following the opening of its gambling market, as major operators such as Las Vegas Sands, MGM Mirage, and Wynn arrived to compete with the established Stanley Ho empire. But Chinese officials, worried that out-of-control growth was creating social disorder, put limits on visas of mainland citizens looking to travel to China's only legal gambling area.
Recent easing of restrictions led to new growth this year, and the US casino operators held or planned IPOs on the Hong Kong exchange to raise money to continue development and expansion. Now, Chui's ascension has gaming industry analysts watching carefully to see what policies are enacted toward the gambling venues.
"After 10 years, Mr. Chui's job is to stabilize growth," Macau political expert Larry So told the Wall Street Journal.
According to the Journal, gambling creates three-fourths of government revenue in Macau, and October gaming income set an all-time record at $1.59 billion. But rumblings from China, which would love to draw more foreign money while capping mainland Chinese gambling, have included a potential limit on gaming tables in Macau and a raise in age limit from 18 to 21.
As Macau attempts to control corruption and stress on infrastructure and labor pools caused by overly rapid growth, new competition prepares to aim at Macau's customer base, beginning with the opening of Las Vegas Sands' project in Singapore early in 2010.
Published on December 20, 2009 by A.J.Maldonado
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