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MACAU : Macau is mulling plans to develop more integrated gaming attractions to attract more visitors to the territory, in bid to reverse the drop in casino revenues which account for the lion's share of its GDP.
Gaming tables and slot machines have jumped 10-fold since Macau opened up its casino sector six years ago.
And as big global gaming players flock in, new and bigger casinos have been built, adding much glitz and buzz. That gave the Macau economy a big boost. Its GDP jumped 26 per cent in the first half of this year.
But gaming revenue is now on the decline after four years of spectacular growth. It fell 10 per cent in the third quarter to US$3.3 billion.
This is due partly to the visa restrictions for mainland visitors going to Macau. Margins have also been squeezed by tour operators asking for high commissions to ship in big-time gamblers.
"Next year will be a very tough year, a lot of uncertainty. I anticipate that next year, there will be a decrease in gross gaming revenue, but I don't think this decrease will pose very high pressure for the operators," said Davis Fong, director of University of Macau.
However, not all is smooth sailing. Struggling casino operator Las Vegas Sands has run into difficulties in accessing credit.
It is suspending its multi-billion dollar project along the Cotai Strip, axing 11,000 workers in the process. 2,000 locals are affected, while the rest are mainly from Hong Kong and China.
"I'll have to go back to the mainland to find work to do. I've no choice," said one laid off worker.
The layoffs are the biggest the territory has ever seen, and Macau's labour office is extending help.
"They can come to our office to make the complaint or make an enquiry, and we’ll immediately call the employer and contractor to come to negotiate and solve their problems," said Shuen Ka-Hung, director of Macao Labour Affairs Bureau.
When the mega Cotai Strip project was first unveiled back in 2004, it was promised that this strip would rival even that of Las Vegas. However, experts are now saying that it could take another seven years before the Cotai Strip is fully completed.
The government now plans to use its strong fiscal position to further diversify other parts of the tourism sector. One key focus is to turn Macau into a more family-oriented attraction.
This may also mean more emphasis on entertainment like live shows, and convention & exhibition facilities.
"During this process, we need to think about which one is the (best) fit or which one can produce synergies for the gaming sector," said Fong.
Macau is investing US$1.7 billion on a stimulus package that includes a highway connecting to the Chinese mainland and a light rail system for the city. - CNA /ls
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