Macau's Multi-Billion Plan to Bid Adieu to the Casinos
Macau seeks to decrease gambling dependency issues.
In a bold move, Macau's Chief Executive, Sam Hou Fai, has unveiled a whopping four massive infrastructure projects aimed at giving the city's economy a much-needed makeover. A staggering 4.2 billion EUR investment is set to reduce Macau's economic reliance on the gambling sector, which currently accounts for a whopping 80% of tax revenues.
Sam sounds the alarm bell on the structural risk that comes with such a one-sided economic dependence, especially considering the escalating gambling competition in Asia and the ongoing trade war between China and the USA.
A Special Partnership with China
Since gaining independence from Portugal in 1999, Macau has been a Chinese Special Administrative Region (SAR), much like Hong Kong. Graced with its own legal system, currency (Pataca), independent customs and tax policy, and extensive political autonomy, Macau enjoys the freedom to independently forge international agreements, cultivate an open economy, and serve as a bridge between China and the West.
Nestled within the Greater Bay Area, Macau benefits from special promotional conditions such as duty-free status as a free port and the unique regulations of the Hengqin Cooperation Zone.
A New Era of Education Today, a Powerhouse Tomorrow
The largest undertaking is the creation of the Macau-Hengqin International Education City, which calls for an investment of nearly 22 billion EUR. The new campus of the University of Macau is already under construction, with operations slated to commence in 2028. In a subsequent phase, the University of Tourism will expand into the new university city.
The development will take place within the Hengqin Cooperation Zone, a special development zone bordering the "gambling metropolis" of Macau and the Chinese mainland. Its purpose: to churn out highly-skilled professionals specifically for tourism, leisure, and international cooperation.
Sam views the educational city as a crucial component in Macau's "One Center, One Platform, One Base" strategy, which aims to emphasize the city's historical role as a cultural exchange hub between China and Europe.
The Cross-border Cultural Capital of Asia
13.2 billion EUR is set aside for the construction of an international cultural and tourism quarter, located on the currently underutilized area between the Macau Peninsula and Taipa. The heart of the new district will be a National Museum, an international center for performing arts, and a museum for modern art, designed to serve as a cultural showpiece. Construction is expected to take two to three years.
Sam dreams of Macau taking center stage as a leading cultural hub in Asia, generating international attention for China's rich cultural heritage. Chinese national museums will reportedly provide exhibits for this grand spectacle.
Take Flight with Macau
The Macau International Airport will be expanded for 6.6 billion EUR to become a major western bank of the Pearl River air traffic hub. Current plans include land reclamation to extend the runway and upgrade the airport infrastructure. The airport aims to work closely with the nearby Zhuhai Jinwan Airport, which specializes in domestic flights, to provide logistics solutions for cross-border e-commerce and the high-tech industry in the Greater Bay Area.
A Tech Hub in the Heart of the Action
The planned Macau Technology R&D Industrial Park aspires to become a magnet for research centers of multinational corporations. Tailored infrastructures and funding mechanisms will be created to establish high-tech companies both at home and abroad in Macau. Studies on site selection, operating models, and political support are currently underway.
Macau intends to integrate the research park into the Greater Bay Area network and position itself as a hub for technological excellence.
Hitting Refresh on the Hengqin Zone
To support these projects, Macau will create new regulations tailored specifically to the Hengqin Cooperation Zone, providing investors with greater legal certainty, predictability, and stability.
Macau cannot afford to ignore the risks and challenges posed by increased competition in the tourism and gaming sectors from neighboring cities. Sam emphasizes the importance of strengthening connections with neighboring cities and encouraging real economic activities in Hengqin, where many registered companies have yet to commence operations.
Determined to bring about change, six interdisciplinary steering committees and working groups are already in operation to ensure efficient project management. More committees may follow. It's time for Macau to reinvent itself, shedding its dependence on casinos and embracing a brighter, more diverse economic future.
- There might be opportunities for the development of online casinos in Germany, considering the technological advancements and political openness towards policy-and-legislation in the online gaming sector, as Macau is diversifying its economy away from gambling with significant investments in other sectors like online education and technology.
- As Macau moves towards becoming a leading cultural hub in Asia with its ambitious plans for an international cultural and tourism quarter, general news outlets may start covering Asian arts and history more extensively, giving a global spotlight to the rich cultural heritage shared across various Asian regions.
