Japan's casinos unlikely to draw Chinese

Mainland tourists will continue to prefer Macao for its convenience

The legalization of Japan's casinos is unlikely to attract too many Chinese mainland tourists, who prefer Macao, a place easier for them to visit, said experts and staff from Macao's gambling industry.

Japan's parliament passed a law on Thursday to legalize casinos, ending 15 years of political debate and opening the way for projects that combine high-stakes gambling with hotels, shopping and conference space, Reuters reported.

The report said Prime Minister Shinzo Abe's ruling party and smaller parties supported the bill to help stimulate the economy and tourism.

It's an "unprecedented" move by Abe " to stimulate Japan's economy, Gao Hong, deputy director with the Institute of Japanese Studies at the Chinese Academy of Social Sciences, told the Global Times. "But the effect is hard to predict, as making use of such a vicious activity to drive the economy of a country may have opposite effects."

The public has been skeptical of the bill, too. According to a survey conducted by the NHK, 44 percent of respondents opposed the bill, with only 12 percent supporting it and 34 percent undecided, The Japan Times reported.

For years, Japanese businesses and tax authorities have watched enviously as vast sums have poured into places like Macao and Singapore, which have built sparkling casino resorts catering to international gamblers, especially those from China, The New York Times said on Wednesday.

Gao said the move is unlikely to divert Chinese mainland gamblers from Macao to Japan because of the language difficulty, adding that Macao's casinos have become more mature over the years.

Echoing Gao, Amanda Lee, an employee from a lottery company from Macao, told the Global Times that "the majority of tourists in Macao come from the Chinese mainland, and it is easier for them to go to Macao than Japan because of the ease of entry."

According to data released by the Gaming Inspection and Coordination Bureau of the Macao Special Administrative Region, gambling revenues in November alone amounted to 18.8 billion patacas ($2.4 billion).

However, Joseph Tung Yao-chung, head of Hong Kong's Travel Industry Council, told the Global Times that the legalization of Japan's casino will attract more Hong Kong visitors.

"Japan is Hong Kong people's primary choice for overseas travel," said Tung, explaining that although Macao is relatively closer to Hong Kong, Japan can provide more choices.

As few as three casinos could generate nearly $10 billion in net profit annually for Japan, the Daiwa Research Institute estimated, equivalent to 0.2 percent of the country's gross domestic product, Reuters reported.

Moreover, gaming executives said that casinos will not be in operation until 2022-23 at the earliest. Fresh legislation is needed within a year to set out details on regulation, tax rates and dealing with social ills such as gambling addiction and organized crime.