Prof: City needs to invest casino take in infrastructure
Typhoon Hato, the strongest storm to hit Macau in more than 50 years, will cost the gambling hub some MOP$11.5 billion (US$1.36 billion) in economic losses, not including the losses sustained by the casino industry. That’s according to the local government’s newly formed Commission for Reviewing and Monitoring the Improvements of the Response Mechanism to Major Disasters.
Hato roared into the territory on August 23. It was the strongest recorded storm in Macau for 53 years with winds peaking at more than 120 miles per hour. Ten people died as a result of the typhoon, and 240 more were injured, according to Inside Asian Gaming.
Macau Chief Executive Fernando Chui Sai On said the city is evaluating its response to the storm following criticism from some sectors and after receiving almost 1,000 comments from the public. The city’s Commission against Corruption has already begun an investigation into the Meteorological and Geophysical Bureau, which allegedly failed to issue adequate storm warnings due to concerns over its potential impact on the city’s gaming industry.
Meanwhile, the cleanup continues. MGM China has announced a new SME Relief Program to help local businesses affected by Hato. “Through our survey, we understand that over 60 percent of our SME vendors have suffered losses in this typhoon,” said MGM China CEO Grant Bowie. “Through the SME Relief Program, we are able to provide immediate assistance to our vendors and continue in assisting them in the long-run of a sustainable recovery.”
Bowie also revealed the company is moving forward with its HK$26 billion MGM Cotai development project despite the damage from Hato, but it seems unlikely the resort will open as expected during the Golden Week holiday at the end of October.
According to a report in Reuters, the city could have done much more to shore up the city against the possibility of severe weather. Since 2012, Macau has pulled in $70 billion in taxes from the city’s casinos, yet invested less than 10 percent of that in infrastructure.
“Years of mismanagement, poor planning and corruption are key reasons why the money has not been better utilized,” the news outlet reported.
‘They could spend much more,” agreed Eric Sautede, a former Macau University professor.
