The Hong Kong authorities have stated that they will not introduce casinos as they would be in competition with Macau and effect its economic growth. Macau, however, is competing with the Hong Kong tourist and convention business with its glitzy casinos and increasing convention trade. The Venetian Macao has just recorded 2.5 million visitors since opening on 28 August, with the majority coming from Hong Kong and the Chinese mainland.

Macau now has 27 casinos with several more casino resorts due to open in the near future. Hong Kong has long been a centre for convention and exhibition business, markets that both Macau and Singapore are hoping to attract with their new integrated casino resorts. Las Vegas Sands has led the foray into what it calls MICE business - Meetings, Incentive, Convention, and Exhibition – and over a year ago announced signed contracts for 26 trade shows at the Venetian Macao produced by ten leading international trade show organisers.

At the time Sheldon Adelson, Chairman and Chief Executive Officer of Las Vegas Sands Corp, commented: "Our MICE operation separates us from traditional gaming operators and is a major part of our international business strategy. You need not look far to see that it is going to be successful. It is clearly evident through our success in Macao, as well as through the tremendous feedback we have received as we start our marketing activities in Singapore."

Hong Kong, therefore, needs to look to its laurels if it is to retain a healthy MICE market. At present Hong Kong is the wealthiest urban centre in the People’s Republic of China and has the greatest concentration of corporate headquarters in the Asia-Pacific region. Last year its per-capita GDP ranked as 6th highest in the world and economic forecasts remain positive. So far Hong Kong is in no need of a casino industry to maintain economic growth and Chief Executive Donald Tsang will have no difficulty in ignoring pressure for casino resort development from tourism operators and the Liberal Party.
(E-10.12.07)

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