Beijing’s call to develop Hengqin is now an ‘order’

Gambling revenue in Macau dropped by 2.6 percent to MOP351.5 billion, according to data released by the government on Friday. Beijing has made it clear: Macau needs to diversify its economy beyond gambling. Hengqin Island is seen as the “linchpin of the diversification plan” but the central government has been frustrated at the development pace there, an executive involved in discussions about Hengqin told the Wall Street Journal.
A Macau government adviser said that now Beijing is no longer just suggesting changes their call to develop non-gambling ventures in Henqgin has become “an order.”
Several gaming operators have said they plan to expand their non-gaming offerings, which could also help them win casino table allotments. Chief executive of SJM Holdings Ltd., Ambrose So, told WSJ that casino companies can participate in the diversification of Macau’s economy by offering more non-gaming activities on their premises. “Integrated resorts offer a diverse mix of activities for patrons – including lodging, dining, shopping, entertainment, meeting and convention facilities,” he said, acknowledging that “this requires training local employees with a diverse set of skills.”
China’s crackdown on corruption and strict control over UnionPay cards used by some high-profile gamblers to avoid Chinese money transfer restrictions are said to have driven the city’s gaming revenue into decline. However, political commentator and professor Eric Sautede said that many actually welcome the fresh direction that comes with Beijing policies.
“I don’t think people see the central government as a threat. They see it much more as the last resort for things to change,” he said.
Those familiar with the industry are unsure of when the economy will improve. But they believe Asia’s casino hub, “will eventually right itself.”