It has been estimated that the Macau gaming market will continue to grow at around 20% annually over the next three years. This is not so much because of its high rollers but because Macau is becoming a tourist destination with increasing grind action. Not all analysts are predicting such market growth, citing increasing competition from neighbouring countries in Asia, but with Singapore casinos still to be constructed and Thailand still to tackle casino legislation, Macau would seem to be a good bet over the next three years.

Competition within Macau is growing as more casinos are built in an industry worth US$5 billion in 2004, an increase of 40% on the previous year. Gaming revenues are fast catching, and expected to overtake, those in Las Vegas. The US$700 million Wynn Macau, scheduled to open in just over one year, is seeing some local criticism over its employment plans. An employment package would give its staff a range of benefits and career opportunities at a time when wage costs are already rising.

Wynn Macau is the third casino to be funded by foreign investors and further bond issues are expected to raise money for projects by Galaxy, Venetian Macau and Melco International. MGM Grand Macau, a joint venture from MGM Mirage and Pansy Ho, is also seeking medium-term loans. In the meantime, the Macau authorities are seeking to change the old image of Macau as a centre for organized crime to one of a tourist destination with more to offer than high roller gambling. (E-08.31.05)

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