Unlike the construction in progress (in the photo) in Macao, some casino and hotel developers have stopped their projects as the number of visitors to the enclave drops. Bloomberg

Casino and hotel developers in Macao have put their projects on hold as the enclave gets fewer visitors and gaming revenue shrinks amid the plummeting global economy.

Las Vegas Sands Corp said on Monday night that it will suspend all construction projects to save cash as violation of some US loan terms might force it into bankruptcy.

Property developer Lai Sun Development Co Ltd said it had to stop building a hotel and entertainment complex in Macao worth billions of Hong Kong dollar because it can't get necessary bank loans.

"I think they will be able to complete the constructions eventually, as they only have some cash inflow problems," said Cheung Nam-chung, chairman of Amas Entertainment Holdings Ltd, a Hong Kong-listed Macao casino.

The credit crisis and economic slowdown have led to a 10 percent drop in Macao's gaming revenues in the third quarter. Casino revenue dropped to 25.99 billion patacas between July and September, said the Gaming Inspection and Coordination Bureau in Macao.

This is the second successive quarter that revenues have slid compared with the previous three months.

"Now it is too late to do the remedy work, but we will try to attract visitors from Southeast Asia to spend their leisure time in Macao. The direct flights between other Asian cities and Macao would help," Cheung told China Daily in a phone interview.

He also added that Beijing's crackdown on mainland visitors has badly hit Macao tourism but "even they are free to come now. They may bet less than before as the mainland stock market is falling dramatically."

Macao Chief Executive Edmund Ho said the Sands' suspension of construction plan is well expected as the company has over-borrowed from banks. He would also urge the mainland authorities to lift some curbs on mainland visitors at an "appropriate time."

"Lai Sun Development and its partner developers had to suspend their construction projects worth HK$10 billion," Hong Kong Economic Times, one of the city's local newspapers, reported yesterday.

"The project foundation has been completed and the next construction will rely on bank loans to finish, but the developers can't get loans at any rate," the report said.

Macao's casino gambling revenue more than doubled over the last four years to 83 billion patacas in 2007. This attracted an influx of casino and property players worldwide to deploy their game tables and hotels in Macao.

Las Vegas Sands has pledged to invest at least $12 billion building casinos in Macao.

(HK Edition 11/12/2008 page2)