Macau gambling on China

HONG KONG -- Macau, the former Portuguese colony that was returned to Chinese rule in 1999, was always the modest cousin to Hong Kong. Its big draw was tourism and gambling that drew locals looking to get away from the big-city buzz.

But that was then, and now Macau's gaming biz brings in more than Las Vegas and attracts multinational investors.

The liberalization of the gaming industry in 2002 saw six concessions and subconcessions granted to local and, more importantly, foreign companies. In five years, Macau saw foreign-backed casinos and resorts such as the Crown, Wynn Resorts, Sands, MGM Grand and the Venetian transform the local gaming industry with glitzy Las Vegas-style hotel resorts, while local businesses responded by building new and improved casinos such as the Grand Lisboa and theme park/casino Fisherman's Wharf.

All the investors are banking on the arrival of millions of mainland Chinese tourists, who, armed with cash-filled suitcases, can now travel to Macau under the Full Independent Tour plan with relative ease. The numbers certainly suggest their bets are correct: In 2005, 10.5 million visitors arrived from China alone, and in 2006 Macau overtook Las Vegas in casino revenues as the gaming industry generated $6.8 billion.

"The tourism industry is one of the main pillars of Macau's economy, and last year, a new record of close to 22 million visitors came to Macau, an increase of 17% compared with 2005," says Eng Joao Manuel Costa Antunes, director of Macau Government Tourist Office.