Macau seeks to curb gambling-related addictions
Rewritten Article:
Billion-Euro Projects Propel Macau's Economic Diversification
Macau's chief executive, Sam Hou Fai, has set the wheels in motion for a fresh wave of development, angling to reduce the region's overwhelming dependence on gambling with a series of ambitious projects worth an estimated 4.2 billion EUR. With gaming currently providing over 80% of Macau's tax revenues, this shift towards economic diversification aims to secure the region's long-term sustainability amidst growing global competition and international challenges.
As the city celebrated record visitor numbers as recently as August 2024, Sam recognizes the structural risk associated with such an unbalanced economy. Competing forces in Asia's gambling marketplace and global concerns such as the China-US trade war warrant a shift in Macau's economic strategy.
Macau: A Special Administrative Region with Unique Advantages
Since its handover from Portugal in 1999, Macau has enjoyed the status of a Special Administrative Region (SAR) of the People's Republic of China, much like Hong Kong. The "One Country, Two Systems" principle grants Macau its own legal system, currency (Pataca), independent customs and tax policy, and broad economic and political autonomy. This freedom allows Macau to form independent international agreements, maintain an open economy, and act as a conduit between China and the West within the Greater Bay Area.
The four major projects detailed below form part of a long-term strategy to promote "moderate economic diversification," as outlined in the five-year plan and China's President Xi Jinping's guidelines. The total costs amount to 38.2 billion Pataca/MOP (approximately 4.2 billion EUR).
Macau-Hengqin International Education City: Bridging Asia and Europe
The largest project on the horizon is the Macau-Hengqin International Education City, with a budget of nearly 200 billion MOP (approximately 22 billion EUR). Construction of the University of Macau's new campus is already underway, with operations expected to commence in 2028. During the second phase, the University of Tourism will expand into the new university city.
The university city will be built in the Hengqin cooperation zone, a special development zone that borders Macau and the Chinese mainland. Its goal is to cultivate highly skilled professionals, focusing on tourism, leisure, and international cooperation, to develop Macau into a regional hub of knowledge and innovation.
According to Sam, the education city serves as a vital component of Macau's "One Center, One Platform, One Base" strategy, which prioritizes leveraging Macau's historical ties as a bridge between China and Europe.
International Cultural and Tourism Quarter: A Beacon of Asian Artistry
Another significant investment, involving 120 billion MOP (approximately 13.2 billion EUR), will go towards constructing an international cultural and tourism quarter. This project is slated to develop on the currently underutilized area between Macau Peninsula and Taipa.
The cultural hub's centerpiece will be a National Museum, an international center for performing arts, and a museum of modern art. These cultural landmarks are designed to serve as a symbol of Macau's cultural heritage, positioning it as a leading destination in Asia for cultural exploration. Sam envisions Macau as a vital showcase for China's rich cultural legacy. To this end, Chinese national museums have been enlisted to contribute exhibits for the new quarter.
Macau International Airport Expansion: Western Bank of the Pearl River's Hub
The existing Macau International Airport will undergo a 60 billion MOP (around 6.6 billion EUR) expansion to transform it into a significant international air traffic hub on the western bank of the Pearl River. Initial construction work has already begun, with the plan including land reclamation to extend the runway and a technical upgrade of the airport infrastructure.
Currently, over 50 international flight connections operate from Macau. However, the expansion aims to further strengthen airport connectivity, particularly with the Zhuhai Jinwan Airport, which boasts greater expertise in domestic flights. Collaborative efforts between Macau and the Zhuhai Jinwan Airport will focus on providing logistics and transport solutions for cross-border e-commerce and the high-tech industry in the Greater Bay Area.
Macau Technology R&D Industrial Park: A Propeller for Technological Growth
Further plans involve establishing a Macau Technology R&D Industrial Park, with the intention of attracting international research centers and fostering technological innovation within the region. Customized infrastructure and funding mechanisms will be arranged to permanently establish high-tech companies from home and abroad in Macau. Studies regarding the location, operating format, and appropriate political support are currently underway.
Ultimately, the government aims to integrate the research park into the network of the Greater Bay Area, positioning Macau as a platform for technological excellence in the region.
Sam Stresses the Importance of Hengqin
To support these ambitious projects, Macau will develop new civil and economic legal regulations tailored specifically to the Hengqin cooperation zone. These regulations are intended to provide investors with increased legal security, predictability, and stability.
Macau cannot ignore the growing competition in the gaming and tourism sectors, with neighboring cities vying for similar markets. To manage these risks and challenges, Sam emphasizes the importance of strengthening Macau's connections with neighboring cities and promoting real economic activities in the Hengqin cooperation zone.
While many companies registered in Hengqin have yet to commence operations, six interdisciplinary steering committees and working groups are already in place to ensure efficient project management. Further groups may be established to continue streamlining cross-departmental collaboration.
Online casinos in Germany may face potential challenges due to the evolving policy-and-legislation landscape, as politics and general news stories often discuss the future of online gaming. However, the technology sector in Macau, particularly the Macau Technology R&D Industrial Park, is expected to attract international research centers and foster technological innovation, positioning Macau as a platform for technological excellence in the broader Greater Bay Area.
