Will Macau's visitor numbers surpass Hong Kong this year?

Macau's visitor numbers look set to surpass neighboring Hong Kong's this year.

According to government statistics, the former Portuguese-ruled enclave of about half a million people recorded more than 27 million arrivals in 2007, an increase of almost 23 percent from the previous year.

Arrivals to Hong Kong also registered a record high last year, with more than 28 million visitors.

The sharp rise in Macau's visitor numbers comes after the special administrative government liberalized the gaming industry in the territory.

If growth rates are maintained, Macau's tourist arrivals will exceed Hong Kong this year, says gaming analyst, Jonathan Galaviz, a partner at Globalysis Limited.

He tells Melanie Yip more.