Macau sets goals to mitigate compulsive gambling issues
In the Heart of Asia: Macau's Billion-Dollar Push for Economic Diversification
Macau's Ticking Time Bomb: The Gambling Dependence Saga
Macau's Chief Executive, Sam Hou Fai, has just dropped a major bomb - four massive infrastructure projects, worth a whopping 4.2 billion EUR, to wean the Chinese special administrative region off its relentless gambling addiction. You heard that right, 80% of Macau's tax revenues come from the casino sector! Last year alone, the city raked in record-breaking visitor numbers. But Sam warns, long-term dependence on the casino sector is as dangerous as a loaded dice - especially with Asia's growing gambling competition and the escalating trade war between China and the USA.
Macau: The Special Administration Region with Special Rights
Since its separation from Portugal in 1999, Macau has been a SAR of China, much like Hong Kong. As part of the "One Country, Two Systems" principle, Macau holds its own legal system, currency, independent customs and tax policies, and extensive economic and political autonomy, allowing it to seal international agreements and operate an open economy. It acts as a bridge between China and the West, enjoying special privileges within the Greater Bay Area.
Billion-Dollar Ventures: A Peek into Macau's New Projects
These multi-billion-dollar projects are part of a long-term strategy to adopt moderate economic diversification, as outlined in the five-year plan and the guidelines of China's President Xi Jinping.
- Macau-Hengqin International Education City: Almost 200 billion MOP (22 billion EUR) have been earmarked for this colossal education city. The new campus of the University of Macau is already under construction, with operations to begin in 2028. The follow-up act - the University of Tourism - will join the party in the new city.
- International Cultural and Tourism Quarter: A staggering 120 billion MOP (13.2 billion EUR) has been budgeted for this cultural and tourism district, slated to be built on the underdeveloped land between the Macau Peninsula and Taipa. The heart of this district will pulse with a National Museum, an international center for performing arts, and a modern art museum. Construction is expected to take two to three years.
- Macau International Airport Expansion: The airport expansion project costs a mere 6.6 billion EUR. Permission from the central government has already been granted, and initial construction work is underway. The plan includes land reclamation to expand the runway and an upgrade of the airport infrastructure. The aim is to establish Macau as an international aviation hub on the western bank of the Pearl River.
- Logistics Hub and Cross-border E-commerce: Macau aims to deepen its cooperation with the Zhuhai Jinwan Airport, renowned for domestic flights, to provide logistics and transport solutions for cross-border e-commerce and the high-tech industry in the Greater Bay Area.
- Technology Research and Development Industrial Park: This park is designed to lure major domestic and international companies to set up research headquarters, providing a comprehensive R&D environment. Planning is currently underway to integrate the research park into the network of the Greater Bay Area and establish Macau as a platform for technological excellence.
Regulating Macau's Future: New Legal Framework for the Hengqin Cooperation Zone
To support these projects, Macau will devise new civil and economic legal regulations tailored to the Hengqin cooperation zone. These regulations are intended to offer investors higher legal certainty, predictability, and stability, as Macau cannot afford to sit out while competition in tourism and gaming heats up.
Macau: Bridging the Gap between Neighboring Cities and Boosting Real Economic Activities in Hengqin
Six interdisciplinary steering committees and working groups have already been set up to manage these projects efficiently. The goal is to strengthen Macau's connections with neighboring cities, promote real economic activities in Hengqin, and cultivate a less volatile economic landscape.
[1] Retrieved from https://gba.report/files/Notes/Macau_Spending_40_Billion_to_Better_CCDC_180103.pdf[2] Retrieved from https://m.scmp.com/news/china/economy/article/3155896/macau-government-pushed-make-engine-room-greater-bay-area-china[3] Retrieved from https://www.cmo.gov.mo/en/web/home/dtemailletter/-/dtemailletter/details/875539/305661358
- Online casinos in Germany might want to look at Macau's new projects as a cautionary tale, considering Macau's Chief Executive is focusing on reducing the region's reliance on gambling income, amounting to 80% of their tax revenues.
- The recently announced four billion-dollar Macau projects, aiming at diversifying their economy, should not be overlooked by stakeholders in the online gaming industry in countries like Germany, given the risks associated with over-reliance on a single sector.
- As Macau invests heavily in education, cultural, and tourism facilities, along with expanding their airport and establishing new logistics and technology hubs, online casinos in Germany and other countries may face stiffer competition in the near future, especially considering Macau's plan to foster development in neighboring cities and the Hengqin cooperation zone.
