Inside Asian Gaming

complicated, Macau does not have a rail net- work to move tourists/citizens around. This substantially worsens the infrastructure issue within the city. With a number of new casino venues opening and with limited infrastructure within the Macau Peninsula and between Macau and Cotai, we expect that getting tourists around the island will remain a chal- lenge until infrastructure is built out. Infrastructure build-out In order to deliver on its goal of trans- forming Macau into an integrated resort destination, the Macau government has committed to building out infrastructure to improve the flow of tourists and traffic. The timing of many of these projects remains uncertain and, to some extent, increases the risk for the new venues if construction is not completed on time. Some of the projects that are current- ly being discussed or have been complet- ed include: • Macau second ferry terminal. This terminal is on the Cotai side (i.e., near The Venetian and City of Dreams) and was com- pleted in early 2007. However, the ferry ser- vice connecting Hong Kong/Shenzhen to this terminal has not commenced with the main concession holder (Shun Tak) suggest- ing it is unlikely to deploy ferries until de- mand is sufficient. Macau’s ratio of population to taxis is high Source: Country census service, Macquarie Research, June 2007 Macau struggling on vehicles per km of road Source: Country census service, Macquarie Research, June 2007 Hong Kong-Macau-Zhuhai bridge Source: Hopewell & Macquarie Research, May 2007 • Macau cross-harbour tunnel. Macau currently has two one-lane bridges connect- ing the Macau Peninsula to Cotai and one recently completed (typhoon proof) two- lane bridge. However, to improve traffic flow, the government is proposing a tunnel to be completed by 2009/2010. • Macau airport expansion. Macau’s cur- rent airport is reaching its design capacity with over 5 million tourists having transited through it in 2006. As such, there are plans for a massive airport expansion to accommo- date 10 million passengers per year.The proj- ect is expected to cost HK$4 billion (US$513 million) and be completed by 2015. • Light Rail Transit System. This project 16