Unleashing Macau's Potential: Billion-Euro Projects Remodeling the Gambling Hub
Macau plans to combat gambling addiction issues.
Ready to shake things up, Macau's Chief Executive, Sam Hou Fai, has announces a series of trailblazing infrastructure projects worth a hefty 4.2 billion EUR. The initiative aims to break Macau's economic chains tethering it to the gambling industry and forge a new path towards a more balanced, thriving economy.
Gambling, once the environmental lifeblood, now poses a structural risk. A whopping 80% of tax revenues derive from the casino sector. With record visitor numbers in the last August 2024, Sam intuits it's high time to diversify and face the growing Asia gambling battle and other international challenges, such as the China-USA trade war, with a broader, bulletproof economy.
Macau: Special Administrative Region with Special Privileges
Post-Portuguese handover in 1999, Macau forms a Special Administrative Region (SAR) of the People's Republic of China, akin to Hong Kong. Under the "One Country, Two Systems" principle, Macau maintains its unique legal system, currency (Pataca), independent customs and tax policy, extended economic and political autonomy, and the ability to conclude international agreements independently, acting as a conduit between China and the West. Sitting amid the Greater Bay Area, Macau benefits from special perks, such as duty-free status as a free port and the Hengqin Cooperation Zone's special regulations.
The projects, unveiled at a media event, are scheduled for implementation within eight to ten years. These initiatives represent a long-term commitment to promoting "moderate economic diversification", as outlined in the Five-Year Plan and China's President Xi Jinping's guidelines. The total costs will culminate in 38.2 billion MOP (roughly 4.2 billion EUR).
Macau-Hengqin International Education City: A Knowledge Capital for a Modern Economy
The crown jewel of the new plans is the Macau-Hengqin International Education City, allocated nearly 200 billion MOP (approximately 22 billion EUR). The University of Macau's new campus is already in construction, with operations slated to begin in 2028. In a second phase, the University of Tourism will also expand into the new university city.
The complex is being built in the Hengqin Cooperation Zone, a zone sandwiched between the gambling epicenter of Macau and the Chinese mainland. This project targets training high-level talent, particularly for tourism, leisure, and international collaboration.
Sam posits that the education city is integral to the "One Center, One Platform, One Base" strategy, enabling Macau to better leverage its historical role as a bridge between China and Europe.
International Cultural and Tourism Quarter: Building a Cultural Powerhouse
A staggering 120 billion MOP (around 13.2 billion EUR) are allocated for the construction of an international cultural and tourism quarter. The project is planned for the land lying between the Macau Peninsula and Taipa, currently underutilized.
The heart of the new district will be a National Museum, an international performing arts center, and a museum for contemporary art. These cultural landmarks are meant to serve as a showcase, solidifying Macau as a cultural powerhouse in Asia and shifting international focus towards China's artistic heritage. Chinese national museums will lend exhibits to bolster the project's profile.
Macau International Airport Extension: Linking with the World
The Macau International Airport will undergo expansion at a cost of 60 billion MOP (around 6.6 billion EUR). The project involves land reclamation to expand the runway, emergency landing circles, an improvement of airport infrastructure, and the establishment of a logistics and cargo hub. The aim is to establish Macau as an international air traffic hub on the western bank of the Pearl River Delta.
Currently, there are more than 50 international flight connections. The plan entails strengthening cooperation with Zhuhai Jinwan Airport in the nearby city of Zhuhai, focusing on logistics and transport solutions for cross-border e-commerce and the tech industry in the Greater Bay Area.
The Greater Bay Area sports a population of over 71 million inhabitants, making it one of the largest metropolitan regions worldwide. Apart from Macau and Hong Kong, it encompasses cities like Shenzhen, Guangdong, and Guangzhou.
Technology Park: A Nest for Innovation and Research
The proposed Macau Technology R&D Industrial Park aspires to be a magnet for international research centers and high-tech companies. Plans include providing custom infrastructure and support mechanisms to ensure long-term establishment of leading firms in the region. Initial studies on the choice of location, operating form, and political support are underway.
External expert institutions will be tasked with developing a sustainable concept, aiming to integrate the research park into the Greater Bay Area network and position Macau as a platform for technological excellence.
"One Center, One Platform, One Base": Connecting Neighboring Cities and Real Economic Activities in Hengqin
In support of the projects, Macau will create new civil and economic regulations tailored to the Hengqin cooperation zone. These regulations aim to deliver investors higher legal certainty, predictability, and stability.
Macau cannot ignore the risks and challenges as competition increases in tourism and gaming with neighboring cities. Sam emphasizes the importance of fortifying Macau's connections with neighboring cities and promoting real economic activities in Hengqin—currently, many companies registered there have not yet begun operations.
Already in place are six interdisciplinary steering committees and working groups designed to facilitate efficient cross-departmental project management. Further committees may be added for optimal implementation.
What about using technology to leverage the international cultural and tourism quarter and the Macau Technology R&D Industrial Park for a more immersive and interactive visitor experience?
In sports, perhaps hosting international esports tournaments in the Macau-Hengqin International Education City could showcase its commitment to training high-level talent in the tech and leisure sectors, while simultaneously attracting young, tech-savvy visitors to Macau.
