Inside Asian Gaming

inside asian gaming May 2016 14 Cover Story attraction as part of the final phases of Galaxy Macau in Cotai, rather than placing that entertainment facility on its vast Hengqin tract. In December 2014, MGM China CEO Grant Bowie confirmed the company had identified a site on Hengqin where it wanted to invest and was awaiting government approval to proceed. Nearly a year and a half later, it’s still waiting and the nature of the project remains unknown. While expressing enthusiasm and gratitude for its upcoming Cotai opening, MGM tells Inside Asian Gaming , “We continue to look for future growth opportunities and Macau has limited land and employment resources and we see Hengqin as an opportunity to continue to develop in this region, for example, by developing additional training facilities for our staff.” Knowledgeable sources indicate no other Macau gaming concessionaire has Hengqin plans as grand as Galaxy’s but companies are tight-lipped and details remain scarce. Macau media reported SJM Holdings planned to invest in Hengqin’s Guangdong- Macau Industrial Park, an area reserved for Macau investors, but the casino operator did not respond to a request for confirmation and details. SJM satellite casino operator David Chow acquired a 30,000 square meter plot near the Lotus Bridge border crossing for RMB250 million (US$39 million) in 2013. He says the MOP$2 billion (US$250 million) development will introduce visitors to Portuguese culture with replica 17th century architecture and stage shows, highlighting Macau’s role as China’s bridge to the Portuguese-speaking world. The project received a HK$680 million loan from mainland lender ICBC’s Macau arm in 2014 and aims for completion in the early 2020s. Mr Chow, a former Macau legislator, is building the project separate from his Hong Kong listed Macau Legend Development that runs casinos. Shun Tak paid RMB721 million in July 2013 for a 23,834 square meter site adjacent to the rail transport hub to create the Hengqin Integrated Development. A subsidiary of Singapore based mixed use project specialist Perennial Real Estate Holdings took a 30% stake in 2014, after working on a similar project in Beijing with Shun Tak. Under construction, the development will feature office and retail space, serviced apartments and hotels, and is expected to be completed in 2019. In a January 2014 news release, Shun Tak Managing Director Pansy Ho – also co-chair of MGM Macau and a leading stakeholder in SJM – describes the Hengqin Integrated Development as “an epitome of the synergistic relationship between Macau and Hengqin, representing the future of tourism development of this region. The integrated development shall fulfill a lynch pin [ sic ] role in a multiple- stop itinerary.” REPEAT CUSTOMERS Hengqin’s success will of course depend on ease of crossing to and fromMacau. Experts such as University of Macau Associate Professor of Business Economics Ricardo Siu, see multiple-entry visas as a key step for the integration that will occur in 2047 and 2049. We consider that Hengqin, more than a new case of success as Macau was, is a new opportunity and with the support of the Central Government will become a prime leisure destination for Chinese and international tourists.” A lecturer in Global Economic Politics at the Chinese University of Hong Kong, Mr Cortes says Hengqin fits the firm’s plan of “expanding and opening offices where we expect our clients to go and need us, and where we consider there are opportunities to develop our practice in an intercultural environment and as a true international law firm.” Hengqin’s status as a Free Economic Zone “makes us very enthusiastic that international players will see Hengqin as an avant garde China.” Aside from regulatory requirements, the firm was attracted to Hengqin by its emphasis on “sustainable development, green construction and integrated infrastructures that will make this PRC [People’s Republic of China] special economic zone the place to be,” Mr Cortes says. “In a sense, we see the Central Government saying that they are doing in Hengqin what Macau should have done in terms of urban planning and diversification of the economy.” HENGQIN HEALTH CHECK Succeeding where Macau has so far stumbled is the goal of Asian American Medical Group’s Zhuhai-Singapore Life Science Park. The hospital project aims to “reshape medical tourism in Southern China over the next decade.” According to the annual report of Singapore-listed Asian American Medical Group (AAMG), “The Park will leverage on China’s demand for world-class medical expertise, as well as Zhuhai’s close proximity to Macau and Hong Kong via the Hong Kong-Macau-Zhuhai Bridge.” “It’s the right place at the right time,” AAMG Executive Chairman Dr Tan Kai Chah says. “Five years on, with the bridge, it will be a boom town.” Players pose behind the WTA Elite Trophy. In the first tournament’s singles’ final, Venus Williams (center) defeated rising Czech star Karolina Pliskova (fifth from left) to take the trophy and a top prize of US$600,000. Chinese star Li Na is second from right. >>