Macao and Japan signed a new Record of Discussions regarding the air transport market between the two places

To further enhance the air transport market between Macao and Japan, the aeronautical authorities of the two places held an informal meeting on 29 and 30 January 2008 in Macao and signed a new Record of Discussions (ROD), which helps to pave way for the conclusion of a bilateral Air Services Agreement (ASA) that governs the operation of scheduled air services between the two places in the future. The new ROD marks a big milestone for the development of air services between Macao and Japan as it lifts the capacity limitation and opens up the number of Japanese cities that Macao’s designated airline can fly to. The signatories were the President of the Civil Aviation Authority of Macao SAR (AACM), Mr. Simon Chan, and the Director of International Air Transport Division, the Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism of Japan, Mr. Hiroshi Narahira. Apart from the civil aviation officials of the two places, the delegations were also composed of officials from the Ministry of Foreign Affairs of Japan and the Consulate General of Japan in Hong Kong, as well as representatives from the airlines of the two parties and Macau International Airport. The meeting was conducted in a cordial and friendly manner. Based on the first ROD which was signed in July 2006 in Japan, both parties adopted a liberal manner in releasing the constraints that were previously set forth. According to the first ROD, the designated airlines of each party were only allowed to operate three flights per week between Macao and Japan; the destination granted to the designated airline of Macao was limited to Osaka. The new ROD lifts the capacity limitation and Macao’s designated airline is now allowed to operate to all Japanese cities except Tokyo. Regarding the point of Tokyo, the Japanese side explained that they are only able to allow Macao’s airlines to operate charter services to the city at the present moment due to the severe capacity constraints of Narita International Airport and Haneda Airport. In addition to discussing this issue, both parties expressed positive attitude towards holding air consultations for an Air Services Agreement between Macao and Japan in the future. The Ministry of Land, Infrastructure, Transport and Tourism of Japan is now coordinating with their Ministry of Foreign Affairs in working out the ASA draft. The draft will be sent to the Macao side for study after the Japanese side has accomplished all the necessary internal procedures. The Japanese side expected that the consultations can take place in 2008. Japan is a country with strong economy in Asia. Its population of outbound travels is not only enormous but with high consumption power. According to the data of the Statistical and Census Bureau of Macao SAR, the number of Japanese tourists visiting Macao rose from 122,184 in 2004 to 299,406 in 2007, an average of 30% annual increase. In 2007, the Japanese ranked number 4 in the East Asia market of Macao’s tourism. On the other hand, Japan possesses rich tourism resources and is a popular tourist destination for the Macao residents. Ever since the gaming industry in Macao has been liberalized, the local economy has been facing favourable growth, stimulating the residents to travel outbound. Now with the opening up of more Japanese cities for direct scheduled flights and the lifting of capacity limitation, the tourism market between the two places can further be enhanced. Upon obtaining the administrative permit from the Ministry of Land, Infrastructure, Transport and Tourism of Japan in July 2007, Air Macau then started to operate scheduled air services between Macao and Osaka. The current frequency is 3 flights per week. The airline plans to gradually increase the frequency to one daily flight this year. In addition, the airline is in discussion with All Nippon Airways on code sharing between the Japanese inland cities. Apart from Osaka, Air Macau, VIVA Macau and Japan Airlines operated a total of 44 charter flights between Macao and other Japanese cities including Tokyo, Nagoya, Fukuoka and so on in 2007. Macao’s economy has been greatly boosted by the tourism and the gaming industries. The implementation of the individual traveling scheme in Macao by the mainland has led to a tremendous increase in the number of tourists visiting the city. In accordance with the demand for air traffic and the requests made by other countries, AACM takes an active part in contacting with the foreign countries for concluding an ASA or renewing the Memorandum of Understanding (MOU). In 2008, AACM also plans to hold air talks with Qatar, Angola and Mozambique and renew the MOUs with the Republic of Korea, the Philippines and Indonesia.