|
 Macau's Chief Executive Fernando Chui used his first policy address to pressure casino operators on Tuesday. He wanted to make it clear that those who want to build in Macau would need to solidify their development plans on government-granted land quickly or risk losing their rights to it.
In a press release following his speech he told reporters that, "the government will follow legal procedures" to repossess any idle land being held by developers who don't have concrete plans to develop it. "The whole process will be made very transparent, but the land has to be taken back and some of it will be used for social housing," he went on.
Analysts for the most part have written off his speech as a load of talk but concern over construction delays has been a very real issue for people in the area. Las Vegas Sands Corp unit Sands China Ltd and Hong Kong-based Galaxy Entertainment Ltd. have both shelved some of their expansion plans for over a year.
Nomura gaming analyst Kenneth Fong says that repurposing the land for public housing is "very unlikely" but he and other analysts believe that Mr. Chui's statement was probably aimed at sending casino operators a message. Macau's Cotai area has long been seen as the primary growth area for gambling in the area but the delays have been hurting its ability to expand.
Foreign casino operators have always been particularly vulnerable to criticism from Macau citizens who feel that they make excessive profits at the social cost of its citizens. Officials in Beijing and Macau have repeatedly voiced a desire to see Macau's economy diversify and grow beyond just gambling but Mr. Chui doesn't appear to have any desire to restrict the gambling industry. He just appears to want to see those who have land use it or give it to somebody else who will.
Gaming revenue in Macau has surged 70% from a year ago according to media reports adding to signs that the casino industry is recovering from the global downturn and restrictions on travelers.
|
Subscribe to this comment's feed