Recent reports from Macau are starting to paint a less rosy picture of the Asian gambling centre. Shares are down for some major operators following disappointing results in September that suggest money is being moved around casinos rather than coming from new customers, and there is increasing discontent from local residents. Profits may have been huge for the first casino developers, but it seems that little of the riches are filtering through to the Macanese.

On May’s Labour Day there was a protest march by Macau’s workers, demonstrating against foreign workers and government corruption. Another march took place last Monday, National Day, with the same concerns being raised. According to many, it is only foreign investors and a few local privileged groups that are making money; income for the majority is being eroded by the impact of cheap labour brought in to service the construction and tourism industries.

Macau, once a by-word for corruption and vice, has successfully been trying to improve its image. A better regulated gaming industry with the advent of foreign operators has played its part, but government corruption is still high on the agenda of Macau residents who feel they are not getting a fair deal when it comes to benefiting from the growing economy. The high cost of accommodation and increasing traffic pollution are also of concern.

The casino operators will be hoping that the September figures, showing that the predicted 75% rise in gaming revenue only achieved 55%, are only a blip on the radar. By most standards a 55% increase in gaming revenue would be more than satisfactory, but there are billions of dollars riding on predictions of sustained rapid growth in the Macau gaming industry. The fact that those predictions have for once failed to equate with the enthusiasm of two major operators, Wynn and Las Vegas Sands, could cause a first tremor of unease amongst investors. (E-10.04.07)

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