Inside Asian Gaming

10 the other hotel-casino operators in Macau are also talking to the Chinese government to participate in the Island’s development.By vir- tue of its size and current undeveloped state, Hengqin offers lots of possibilities. However, we do not expect a swift decision as the proj- ect involves the higher-level provincial gov- ernment, and may at some stage require the approval of the central government as well. Although on a longer term outlook the 5 sq. km Cotai Strip would not be able to accommodate the potential demand for entertainment and resort facilities from the mainlanders, the capacity constraint will unlikely appear over the next 3-5 years, thus allowing more time for planning. The experience with the Cotai Strip, where a lot of the land was granted in the early days, leaving little for others, could suggest to the authorities more thorough planning for Hengqin Island. Notably,our earlier meeting withMacau government officials reveals that instead of seeing Hengqin as a threat or competi- tion, they consider the development would offer possibilities for Macau to expand its service industries and further integrate the two regions. Hengqin Island Source: CLSA Asia-Pacific Markets Rendering of Macao Studio City The experience with the Cotai Strip, where a lot of the land was granted in the early days, leaving little for oth- ers, could suggest to the authorities more thorough planning for Hengqin Island. The coming City of Dreams, pictured here, was one of the early projects to secure a plot on Cotai.