Last month marked the 10th anniversary of the handover from Portuguese rule to Chinese oversight of Macau, which was immediately dubbed a "Special Administrative Region" of China.

The anniversary was marked by celebrations, the inauguration of a new chief executive and the visit of Chinese President Hu Jintao. The Chinese government has clamped down on Macau's explosive growth over the past two years, slowing gaming expansion and regulating visits from residents of the mainland.

Hu suggested that even tighter controls might be installed over the casino industry, as he said the city should be "strengthening and improving the management of the gambling sector."

Hu said "officials should utilize fully the series of measures that the central government has already adopted to support Macau," noting that the economy should be diversified, living standards should be improved and educational opportunities expanded.

In addition to the celebration, Hu was in town to attend the ceremony installing Fernando Chui Sai On as the second chief executive under Chinese rule. Chui replaces Edmund Ho, who had led the SAR from the handover, but whose ethics were questioned toward the end of his administration.

Chui praised the Chinese government for its benevolent oversight of Macau.

"We have been unswervingly implementing the principle of 'one country, two systems,'" he said, which referred to the relative autonomy granted to Macau and Hong Kong, compared to the rest of China.

While praising the gaming industry for creating jobs and opportunities in Macau, Chui said he would "actively promote the diversified development at an appropriate level."

Part of the diversification, said Chui, was an emphasis on tourism, conventions and meetings, cultural and creative industries, and upgrades to existing industries.

Lawrence Ho, the co-chairman of Melco Crown Entertainment, is fully behind this effort.

"For Macau to take the next step," he says, "it must have more non-gaming revenue. There are people who go to Vegas who never go to a casino. In order for Macau to go there, it is really going to be supply-driven, so we need more rooms."

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.