New leader confirmed for gambling enclave of Macau
Posted by Gavin Smith on 28 Jul 2009 at 08:07
The gambling enclave of Macau ushered in a new era on Sunday as Fernando Chui was installed as is next chief executive.
He was the only candidate left in the race to become the leader of the ex Portuguese colony, but still needed a 300-member election committee to rubber-stamp his arrival.
He will replace the outgoing Edmund Ho, who has run down the maximum two five-year terms since the passing of Macau back into Chinese hands in 1999.
Few changes are expected in gambling policy following the arrival of the new head, although the destination is seeing some of its toughest times to date economically.
Quoted by Reuters, Chui seemed to confirm the idea that little will change when he spoke after his election.
"We will follow previous policies to maintain healthy development of Macau's gambling sector and hope that it will maintain its advantage in Asia," he said.
To seal his seat at the head of the gambling hub Chui picked up 282 election committee member votes, a procedure many had regarded as a mere formality.
Macau is now even bigger than Las Vegas in terms of revenue and is now regarded as the world's biggest gambling destination.
Reuters also added Chui did say he would look towards "appropriate diversification" schemes, relating to the need to widen Macau's international appeal to tourists. Plans are thought to include an effort to make greater use of resorts as conference centres and a push to promote more traditional and historical attractions.
Reuters also added Chui was by no means welcomed by everyone locally. Protesters gathered at St. Paul's church carrying banners demanding greater democracy. Hong Kong, an ex-British colony, enjoys greater voting rights than Macau, having run a contested chief executive election in 2007. Reuters said Hong Kong is also expected to have universal suffrage by 2017, whereas Macau does not have this on the horizon.
Fernando Chui's list of problems also includes the much-debated visa restrictions imposed by Beijing which have made it harder for mainland residents to visit Macau. Some hope that this legislation will be relaxed to further boost visitor numbers at a time when revenue has been falling.
Casino bosses have also called for a crackdown on junket operators who have a grip on the VIP gaming industry, which has hit the profitability of the big casino hotels.
Among those welcoming Chui was Macau's original gaming tycoon, Stanley Ho, who was quoted by Reuters as saying there will be "no fighting" between operators thanks to the new arrival.
Many onlookers are expecting a quick recovery for Macau, even though revenue has fallen significantly in the last few months.
The competition could present a problem in the form of new developments springing up in Singapore, which could swallow up some of the still-growing international interest in Macau.
Quoted by Reuters, Eilo Yu, an analyst at the University of Macau said: "Because of his family background, people will ask whether there's a conflict of interest,"
"Also his past performance has not been exceptional so people might think he's not good for the job."
Chui was educated in America and is from a well-to-do Macau family which is well known in the business world. He will finally take his seat officially in December.
