A new income generator

A new income generator

= Poe Aung =

Singapore-based Zochwell Group is close to signing a contract to develop a US$ 1.2 bn casino project in Myanmar’s Myeik Archipelago, reports local newspaper Myanmar Times.

Attempts to legalize casino gambling in Myanmar, which industry experts say is one of the south-east Asia’s major untapped gaming markets, have been delayed repeatedly amid opposition from lawmakers worried about addiction and organized crime.

Strategically located on the border of China, Thailand and India, the largest country in the south-east Asia has been reportedly interested in modifying the current gambling legislation and help the state budget by allowing the establishment of foreigner-only brick-and-mortar casinos.

The land on Salon Island has already been zoned for commercial use, Zochwell’s chief commercial officer Gareth Chin told the Myanmar Times. The firm would have a 50- year lease over the land, with an option to extend the contract twice– each time for a period of 10 years, he added.

“We are going to sign the land lease and the build, operate, transfer terms with the chief minister [of Tanintharyi region] in the next month, as soon as the Attorney General’s Office approves the agreement. After that, we will seek Myanmar Investment Commission approval,” Mr Chin was quoted as saying.

The Myeik Archipelago is a group of more than 800 islands in the Andaman Sea, off the southern tip of Myanmar, in the Tanintharyi Region. Almost untouched by tourism, had five hotels and motels with a total of 196 rooms by the end of 2014, according to data from the Ministry of Hotels and Tourism.

Although opening casinos for foreigners may benefit certain hotels, others question whether it will benefit the tourism industry as a whole.

Aung Kyaw San, an experienced English-German tour guide, said casinos would likely to benefit only the hotels, as well as casino owners and their direct workers, while at the same time increasing criminal cases due to the influence of gambling.

“They (government) shouldn’t allow it. There will be many disadvantages and only a few benefits after opening casinos,” he added.

By allowing the opening of legal and regulated casinos, some of tourism experts believe that this would help Myanmar to attract a new kind of gambling-oriented tourism and the number of tourist could be significantly increased. They also hope that by regulating live gambling.

Also, by regulating live gambling, authorities hope to stop the phenomenon of illegal gambling that has led to the creation of illegal gambling halls in different parts of the country.

Recently, two more major casino resorts in south-east Asia are being proposed, one in the Philippines and another in Myanmar. In the Philippines, combined American and Macau investor groups plan a $650m casino in Lapu-Lapu city on Cebu. The 1,350-room resort would open in 2017 in what will be Mactan Leisure City.

There are pros and cons in every sector, business or activity. But if the benefits will be much higher than the risk we should favor introducing this business as a new thrust towards generating higher income for the people as well as the country.

#Themyawadydaily