Li Gang pledges assistance to local economy

Li Gang (3rd from right) poses for a photo with Chui Sai On and other dignitaries

The Central Government plans to implement various measures to revitalize the region’s continuously sluggish economy starting this year, indicated Li Gang, the head of the Central Government Liaison Office in Macau.
Speaking last Thursday on the sidelines of a reception celebrating the National Day, Li Gang reminded the media that the first policy to have a positive effect on local economic development will be the possible allocation of clearer jurisdiction over the region’s surrounding waters, which would come into force by the end of the year, he said.
The official believes that the move, which would allegedly allow the local government to manage an area several times larger than its current jurisdiction, could pave the way for further developments in tourism and transportation.
Aside from the water sovereignty issue, Li said that mainland authorities are considering many other policies, especially those targeting the region’s gaming industry, the mainstay of the economy.
He also attributed the enduring economic woes in casinos to the general economic slowdown, downplaying the impacts of the anti-graft crackdown and the strengthened supervision of UnionPay activities.
Other measures, as the official revealed, would be akin to looser visa regulations for mainland tourists in order to encourage investment into tourism and hospitality.
Asked if Beijing would open up other mainland cities for individual visits to the region, Li stressed that an influx of tourists would not cause a major increase in gaming earnings, as he acknowledged that too many arrivals could take a toll on the livelihoods of local citizens.
Comparing the local annual numbers of tourists to Hong Kong’s, the official said the city has already received a considerable number of visitors.
Li’s words echoed in the HK stock exchange on Friday, with the big-six casino chips rising 7 percent overall, contributing to a rise of over 3 percent of the benchmark Heng Seng Index.
The spike reverberated from Europe to New York bourses. Wynn Resorts Ltd. increased the most in more than six years, leading casino stocks in rising after Li’s speech.
Wynn, which generated 70 percent of its revenue in the region last year, jumped 23 percent to USD63.52 at the close of market in New York, the biggest one-day gain since April 2009. Las Vegas Sands Corp. rose 11 percent to $40.87, while MGM Resorts International advanced 6 percent to $19.79.
“Any potential measures to help Macau’s visitation could be a great boon for the industry, as casual gamblers are now becoming the key pillar of the industry profits in the midst of VIP weakness,” DS Kim, an analyst at JPMorgan Chase & Co., wrote in a note. AU