Inside Asian Gaming

INSIDE ASIAN GAMING | August 2008 42 Briefs Regional Briefs New Restrictions on Mainlanders Travelling to Macau Claiming visa policies have been “abused” in the past, the Macau government beefed up entry restrictions on visitors from mainland China. From August 1, Chinese passport holders who have permission to visit Macau before heading on to a third destination will only be allowed to stay for seven days, instead of the previous 14. Those who return to China without proceeding to a third destination will only be allowed a two-day stay if they apply using the same method again. If they fail to move on the second time, any future application will be refused. In addition, from September 1, mainland residents who hold entry-exit permits for travelling to and from Macau and Hong Kong, will no longer be able to enter Macau from Hong Kong. According to the Macau government, the new measures are intended to “better regulate the flow of mainland visitors.” Authorities in the neighbouring mainland Chinese province of Guangdong have already acted to make it more difficult for their residents to visit Macau. Since July 1, Guangdong residents wishing to visit Macau under the independent traveller scheme are only allowed to apply once every two months. This followed a June 1 move to limit visits to once a month,which proved largely ineffective. Prior to that, mainland residents were allowed to visit Macau twice a month—a policy that dated back to May of last year, when the first travel restrictions were introduced. Various explanations are offered for the recent moves to make it more difficult for mainland Chinese to visit Macau often and spend considerable amounts of time there. It could be a means to stem the tide of illegal workers crossing the border to work in Macau. It is clear, however, that to some extent it is also an effort to rein in the ever- increasing sums gambled by mainland Chinese in Macau’s casinos. SJM Starts Trading on Hong Kong Bourse Macau casino tycoon Stanley Ho’s Sociedade de Jogos de Macau (SJM) finally began trading on the Hong Kong stock exchange on July 16 after years of delays, as the company faces increasingly stiff competition from new casino operators after the end of Dr Ho’s 40- year monopoly in 2002. Speaking at a ceremony at the Hong Kong stock exchange to mark SJM’s trading debut, 86-year-old Dr Ho remarked: “It marks a new milestone for the company and Macau,” adding that “this big cake of Macau is sufficient to be shared by the six gaming operators. There’s no need to fight.” The company’s initial public offering and listing were postponed several times in recent years amid lawsuits and weakening market conditions.The listing was to have gone ahead earlier in July, but was held back by a last-minute legal challenge from Dr Ho’s sister. The legal action spooked investors, and half of the offering’s retail buyers withdrew before the July 16 debut. “Everybody knows our progress to listing wasn’t smooth, but we successfully jump over the obstacles and turn every challenge into opportunities,”Dr Ho commented. In the initial public offering that began at the end of June, SJM sold a 25% stake, or 1.25 billion shares, raising nearly US$500 million, which the company says will largely go toward developing new properties in Macau. Dr Ho, who is worth more than US$9 billion according to Forbes magazine,faces stiff competition from the five other casino operators who are making big investments in Macau. A further concern is that while the city’s casino revenue has been growing at a spectacular pace since 2004, the growth could slow in the near term following the new visa restrictions on mainland Chinese visitors. Although SJM still has the leading market share in Macau, at an estimated 28%, and runs 19 of the city’s 29 casinos, its 2007 net profit fell 38% to about HK$1.5 billion (US$192 million) from HK$2.4 billion the year before. It is projecting earnings of at least HK$559 million Stanley Ho reviews design proposals for the redevelopment of the ageing but iconic Hotel and Casino Lisboa