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By Hui Ching-hoo (China Daily)
Updated: 2007-08-27 09:22

Macau entertainment conglomerate Macau Success Ltd ties up with Japan pachinko runner Maruhan Corporation to lure Japanese punters to its entertainment project Ponte 16 which will be opened soon.

The two companies earlier signed a letter of intent, of which Maruhan would become one of the major shareholders of the subsidiary of Macau Success.

"The introduction of Maruhan is to tap the Japanese market," said Hoffman Ma, executive director of Macau Success.

Japanese punters used to be the main income source for Macau gambling business in the 1980s though its turnover has been overtaken by mainlanders.

Japanese market was overlooked in recent years since casino runners set their sights on the whopping mainland market.

There is a sign that the niche can be reinvigorated in view of enormous Japan-based firms flocking in Zhuhai - the Guangdong economic hub which neighbors Macau.

"Through the partnership, we hope to scoop the Japanese in Zhuhai that make Japanese and South Korean visitors weighting 20 percent of the overall customers for Ponte 16," Ma said.

Located close to the border of Zhuhai, Ponte 16 has competitive edge to woo Japanese customers from its neighbor.

"There are lots of cross-border coach and vessel services. It is very convenient to access our casino."

Guangdong Province recently tightened the grants of travel visa applications for its residents planning to go to Macau to combat rampant gambling and exodus of illegal workers.

Ma said that exploration of Japanese and Southeast Asian markets could reduce the risks of depending on mainlanders alone.

"We hope to build a broader customer base," said Ma. "Southeast Asian customers will be another growth driver. They now constitutes 10 percent to 15 percent of the overall tourists of Macau every year."

Maruhan is a veteran pachinko runner in Japan, which owns 209 stores and 118,451 slot machines. It also engages in bowling alleys, amusement centres and other leisure-related businesses.

However, Ma said they are yet to decide whether to bring the slot machines to Macau. "The pachinko business in Japan is operated in the form of membership. We still need to discuss with the regulator on whether this type of business is suitable for the local market."

He said the company takes a wait-and-see stance in making a foray into Japan market.

"Undoubtedly the network of Maruhan could help us to get into to market. Japanese government is scheduled to issue gambling licences in 2010, but we prefer to wait until the picture becomes clearer," Ma said.