The managing director of the Macao Gaming Co. Ltd. (SJM) said in a recent interview that the moderate open-up of Macao's gaming industry helped create a healthy competition mechanism and long-term stability.

The 83-year-old tycoon had virtually dominated Macao's gaming industry for 43 years until May this year, when the first foreign casino was erected in Macao.

Rising to the challenges from rivals, Stanley Ho said he loves challenges. He is confident that as a local business, his SJM holds its advantages in the marketing and investment on the local market.

Ho lost his privilege in the gaming market after the Macao Special Administrative Region (SAR) government decided to liberalize the market in 2002. But Ho said that he would rather see the challenge as an opportunity to upgrade his company.

"Fully recognizing the competition situation, SJM would reinforce marketing, business promotion as well as staff training to adjust to this round of professional and globalized competition," said Ho, who is also a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

The Guangdong native insisted to speak in newly-learnt mandarin,which shows his emulative spirit in business.

On the central government's support to Macao, Ho has given his full trust. China's relaxation of restrictions on mainland tourists to go to Hong Kong and Macao on individual tours has significantly cheered up Macao's tourism market, which helped boost the overall market atmosphere.

In the first half year, Macao received 7.73 million visitor arrivals, which exceeded the total number of the whole year's counting in 1999. In the first 10 months of this year, the number amounted to 13 million, which was 1.8 million more than that recorded for the whole of last year.

The gaming-tourist industry has been the foremost sector benefiting from the tourist influx. Ho's flagship company SJM now runs 13 casinos. The other two casinos in operation were opened this year by his two rivals, namely, the Sands, a casino operator from Las Vegas, America and Galaxy from Hong Kong.

"Despite the competition, SJM's gaming tax will grow by the endof this year based on that of the previous year. SJM has its bets of continuously holding the lion's share on the market," said Ho.

SJM contributed over 35 percent of its gross revenue to the government's tax coffer as well as culture, education and social welfare causes.

Ho said that in the building of SJM's new investment projects, the company has sustained its traditional concept of elevating the city's overall cultural taste.

Among SJM's biggest construction projects is the flagship GrandLisboa with an investment of 3 billion Hong Kong dollars (384 million US dollars). Designed with an egg-shape base, the building will have an elongated lotus-like shaft, which symbolizes Macao's image as a "lotus city," said Ho.

Macao Fisherman's Wharf and the Ponte 16 (or No. 16 Harbor) theme parks, which will open to the public by July next year and the end of 2006, respectively, were meant to diversify the cultural elements in the small city.

Ho said that SJM is learning from its rivals an innovation spirit to adjust flexibly to the market consumption changes.

"Macao's gaming industry is upgrading its hardware facilities and expanding development spheres to include meeting, incentive, convention and entertainment industries," said Ho.

Based on the current political, economic and social status, Macao is poised to achieve a more remarkable development future, he said.

Ho, who has been in the Standing Committee of CPPCC since 1998, is enthusiastic in offering political consultation. He said that the CPPCC unites personages widely representing all walks of life in Hong Kong, Macao, Taiwan as well as in overseas Chinese communities.

"CPPCC channels opinions from different circles to the central government, which is conducive in pushing forward cross-straits exchanges and cooperation and realizing China's reunification cause," said Ho.