Of all the victims of a downturn in Chinese tourism, Macao stands to lose the most.

About 58 per cent of all inbound travellers come from mainland China, where gambling is outlawed. Although the number of mainland tourists to Macao increased by 10.6 per cent in August, it is a far cry from the 29.9 per cent growth registered in July and the even faster rate of 36.6 per cent recorded in June.

The slowdown is already affecting casino revenue, which rose more than 50 per cent in the first six months of this year but was flat in the first half of last month, according to Standard & Poor's.

Since Stanley Ho's mono­poly on the gaming market was ended in 2002, Macao, which has 30 casinos and has attracted heavy investments from Las Vegas casino operators, is now the world's biggest gaming market.

Most analysts forecast that the total September figure, which will be released later this month, will fall. If it does, it will be the first monthly drop in casino revenue since November 2005.

The decline is being anticipated after Beijing announ­ced a series of measures to tame explosive growth in the Macao gaming market this year. The Chinese government has in the past few months repeatedly tightened the frequency and ease with which mainland gamblers can travel to Macao.

The travel restriction is not only affecting the gaming industry but also tourism and the economy as a whole.

"The honeymoon period between the central government and Macao is over," said Au Kam-san, a legis­lator.

"It will be disastrous if the trend continues. The tourism industry depends on the casinos. Some people will be out of work."

Already, Macao's streets and casinos - once filled with mainland tourists - have become quieter. The Macao economy, more than half of which is sustained by casino revenue, is forecast to grow just 10 per cent this year, down from 33.2 per cent in 2007.

While the gaming industry employs about one-fifth of Macao's workforce directly, another 25 per cent work in the enclave's hotels, shops and restaurants.

But a temporary drop in the number of Chinese visitors may help Macao's tourism industry achieve a more balanced development in the long run.

"Apart from casinos, the government has not really developed anything in the past few years to help tourism. Our infrastructure, airport and ferry cannot support the growth," said Mr Au. "For the industry to thrive, the government has to realise that we can't rely on just one country and one sector."

Fewer Chinese tourists visit Taiwan

Far fewer Chinese are visiting Taiwan than expected, undermining the Taiwanese government's promise that closer ties with the politically hostile neighbour would help boost the island's economy.

During the week-long holiday around China's National Day on October 1, little more than 4,000 Chinese citizens visited Taiwan as tourists, according to the island's tourism bureau. In June, China and Taiwan agreed to allow up to 3,000 citizens of the People's Republic a day to travel to the island as tourists.

The deal was the first campaign promise on which Ma Ying-jeou, the president, delivered after taking office in May following a landslide victory. But total tourist arrivals from China this year as of the end of August were down 10.5 per cent compared with the same period in 2007.