It is not only the millions being made in gaming dollars that attract casino operators to Macau; it is the potential market of millions of Mainland Chinese gamblers. Last year Macau’s economy grew by 25%, compared to 15.6% in 2003, and visitor numbers grew to 16.67 million. Tourism and the garment industry both contribute to the economy, but it is the 35% gross revenue tax on casinos that is the major factor in the boom. In the first two months of this year 2.92 million tourists visited Macau and the government collected US$337.5 million in gambling taxes. Visitor numbers are expected to rise to over 20 million in 2005.

In this lucrative scenario, Australian Publishing & Broadcasting Ltd (PBL) and joint venture partner Melco International Development Ltd have decided to increase their stake in the company to build and operate the Park Hyatt Hotel & Casino on Taipa Island. The purchase, subject to shareholder approval, of the remaining 30% of Great Wonders Investments Ltd, is reported to have cost in the region of US$50 million paid from existing joint venture funds.

The Park Hyatt is scheduled to open mid 2006 as Macau’s first six-star hotel. The 32-storey complex will include 240 deluxe suites, 200 gambling tables and 1,300 slot machines. Kerry Packer’s PBL and Stanley Ho’s Melco joint venture company will also manage a slot machine business in Macau and is looking towards other gaming opportunities in Asia. One of these is the integrated resort concept for Singapore, where PBL and Melco submitted a bid in February along with heavy international competition.

The Victorian Commission for Gambling Regulation in Australia is still investigating the joint venture to determine if Stanley Ho is a person of 'good repute'. Previously other Australian regulatory authorities have decided that he is not, and if Victoria comes to the same conclusion then PBL may be in the position of having to pull out of the deal in Asia or being forced to sell their Australian casino interests.(E-03.22.05)

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