Inside Asian Gaming

MArch 2016 inside asian gaming 17 In Focus sympathy among a minority in Macau’s gaming industry, who see table restrictions as part of an overall policy agenda from Beijing that is hostile towards the city. Yet Wynn’s words were ill chosen, because China holds all of the cards in deciding the fate of gaming in Macau. Moreover, when it comes to the city’s casino industry, at least, the behavior of China’s central government has been both reasonable and rational. China’s levers of control Fair behavior or not, attacking China is always a bad idea because the motherland has so many channels of influence over Macau. Take, for starters, immigration. Mainland tourists account for over two thirds of arrivals in the city and just over 90% of visitor spending. Every citizen leaving the People’s Republic, for Macau or any other destination, must apply for and be granted an exit visa. “China has significant control in terms of its capacity to shut off the faucet, or at least turn the pressure down,” says David Green, principal of the regulatory, market and taxation advisors Newpage Consulting. “From time to time, it has tightened the screws on visas. I think this reflects on the fact that Macau hasn’t really succeeded in extending its appeal to gamers far beyond Greater China.” China responded after the SARS epidemic scared international tourists away from Macau and Hong Kong, by introducing its Individual Visitation Scheme (IVS). The July 2003 measure allowed Chinese from cities most likely to feed visitors toMacau or Hong Kong to visit either city as individuals instead of in hitherto compulsory tour groups, giving a much-needed boost to both economies. It was only intended as temporary, but has not yet been revoked. Indeed, from 2003 to 2007 more and more cities were added. The number of cities whose citizens are eligible for the IVS now totals 49. More recently, after Labor Day protestors rioted in Macau in 2007, China slowed down its visa approval process. The move was made without consulting Macau’s government, and was seen by some as pressure on the former territory to get its house in order. China’s Communist Party values social stability more than anything, perhaps, except keeping itself in power. Macau’s dependency on cross-border traffic from China will increase with the development of Hengqin island. A Special Economic Zone across the Xi River from Macau, Hengqin is being built up as a service satellite district to the city, with hotels and facilities for entertainment, conventions and leisure. In the future it will fall under the joint administration of Macau and the city of Zhuhai. China will likely move its border controls back from the bridge between Hengqin and Macau to the bridge linking Hengqin with the mainland. After that, not only tourists, but also thousands of workers will be moving freely, every day, between Macau and Guangdong Province. There is also currency controls; the amount of money the mainland allows visitors crossing over into Macau to take with them. Last September the PRC’s State Administration of Foreign Exchange limited overseas ATM withdrawals to 100,000 yuan per Macau’s dependency on cross-border traffic from China will increase with the development of Hengqin island. A Special Economic Zone across the Xi River from Macau, Hengqin is being built up as a service satellite district to the city, with hotels and facilities for entertainment, conventions and leisure.