Transport hinders Macau prospects

   Date:2008/07/09     Source:

MACAU, the world's biggest gambling hub, lacks the airport and ferry capacity needed to support the growth of its casinos and tourism, Lawrence Ho, chief executive officer of Melco Crown Entertainment Ltd, said on Monday.

"The infrastructure isn't there," Ho, whose company runs the Crown Macau casino, said in an interview in New York. "It wasn't well planned because everybody wanted to rush their casino openings."

The number of casinos in the former Portuguese colony has more than doubled to 29 since 2004, when the government ended a 40-year monopoly held by billionaire Stanley Ho, Lawrence's father. The city will likely receive 30 million visitors this year, with gaming revenue jumping 70 percent, said Ho.

Gaming revenue is growing "too fast" to avoid central government stepping in with curbs such as visa and license restrictions, he added.

"If they don't do something now, it could grow to 90 percent growth year on year, and I think everybody would agree that's ridiculous," said Ho. Revenue rose 50 percent last year, according to Bloomberg News.

Most visitors to Macau from overseas and Hong Kong travel by ferry. Few airlines can fly to Macau because of limited aviation rights and a lack of airport capacity. Most mainland visitors enter the city through nearby Zhuhai city.

Macau is also plagued by inner-city congestion, with the government's plans for an underwater tunnel and a sky-rail linking the city's two major tunnels being put on hold for years, said architect Campina Ferreira of Macau Professional Services Ltd.

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