NEWS ANALYSIS: Macao's Aviation Industry to Fly Higher

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 ◆ NEWS ANALYSIS: Macao's Aviation Industry to Fly Higher

Macao's aviation industry is tipped to fly higher on anticipation of continuos influx of large numbers of Taiwan travelers and expanding tourism business.

Air Macao expects its 2002 profits to rise as much as 40 percent from the 9.46 million U.S. dollars it reported for 2001.

The growing trend of tourism will give an impetus to the aviation sector. According to statistics, the special administrative region (SAR) played host to a record of more than ten million tourists last year, with inlanders soaring to roughly 30 percent of the total.

Air Macao CEO Zhang Hongying told Xinhua that it was a wise step for the government to liberalize the gambling sector by issuing three casino licenses, as more punters will come to Macao along with introduction of market competition.

"But we should not forget that Macao is not only famous as a gambling city, but has a long multicultural history. We should make good use of this privilege to develop Macao as a relaxing destination," he said.

The aviation industry will be the first direct beneficiary when Macao becomes a resort city, a gambling center and a hub for conferences and exhibitions in line with an ambitious government plan. Zhang said when this comes to fruition, Air Macao will capitalize on the emerging opportunities.

Macao should upgrade service, add different types of restaurants and develop transportation network to address the tourism and aviation growth, he also noted.

"While short-term objectives should be reached, Macao's long-term image is extremely important."

Air Macao depends heavily on the business of carrying passengers and cargo between China's mainland and Taiwan because direct flights are banned across the Taiwan Straits.

Chairman Kong Dong of the China National Aviation, which is controlled by China's aviation regulator and owns 51 percent of Air Macao, dismissed worries that Air Macao would lose business if direct flights were launched.

"There might be overlapping of routes, but there is a real market for people to travel through Macao to China's inland and Taiwan," he was quoted by a local newspaper as saying.

"The overall market will expand," he added.

Air Macao plans to start cargo flights between Shenzhen and Macao, connecting to Taiwan, later this year.

"If everything goes well, we will be able to operate 12 flights weekly," Kong said.

The Macao International Airport, most frequently used by Air Macao, recorded brisk business in 2001 with passengers handled jumping up 17 percent to 3.8 million, despite challenges arising from the September 11 terrorist attacks in the United States.

The August figure of that year stood at 360,900, a monthly record since the airport was put into operation in November, 1995.