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President Xi Jinping has urged Macau to prioritize economic diversification as his “first” hope after a three-day tour of China’s gambling capital to mark the 25th anniversary of the country’s handover from Portugal. I called out.
Mr Xi’s remarks on Friday came at the swearing-in ceremony of Macau’s new chief executive Sam Hou-fai, the country’s fourth leader since the country’s 1999 handover.
Analysts believe Sam, the city’s first mainland-born leader without strong ties to the business sector, will support Beijing’s efforts to diversify Macau beyond gambling. The sector accounts for about 80% of the city’s tax revenue, making it one of the fastest growing economies in the world in recent decades.
Xi urged Sam’s government to increase policy support and investment in new industries, saying, “First of all, (Macau) should focus on promoting proper economic diversification.”
Xi also said the “one country, two systems” agreement that led to the return of Macau and neighboring former British colony Hong Kong to Chinese rule would be maintained “for a long time” to ensure the city’s “prosperity and stability.” Said it was necessary.
The Chinese leader, who arrived in Macau on Wednesday, said he was looking forward to meeting officials from around the city. According to Chinese state media, he also visited the Macau University of Science and Technology, where he was briefed on laboratories that research traditional Chinese medicine and planetary science, and attended cultural performances at the Macau Dome.
“President Xi’s visit is important not only for its symbolism, but also for the message it sends,” said Anthony Laurence, founder of consultancy Intelligence Macau. “This is the first time I have praised him for a job well done in Macau. His previous trips have been to admonish and appease.”
Macau, the only Chinese territory where gambling is legal, has seen a surge in investment from US-listed casino groups Las Vegas Sands, MGM and Wynn since liberalizing its gaming monopoly in 2002.
However, the city has become dependent on tourist flows from mainland China. The economy has suffered during the coronavirus pandemic as strict quarantine and travel rules have hindered entry.
In 2022, the Chinese government also moved to crack down on junket operators who offered credit and lavish entertainment packages to lure high-spending Chinese gamblers. Authorities accused them of running a vast underground financial mechanism.
As a condition of renewing their gaming licenses last year, Macau’s six major casino operators will allocate more than 90% of their total investment of approximately $15 billion over the next 10 years to non-gaming activities such as conventions, events and exhibitions. I promised to do it.
Grant Cham, CEO of Sands China, one of the city’s largest employers, told the Financial Times this month that “all operators in the industry need to understand the diversity of the non-gaming elements of their services. We are redoubling our efforts to increase the number of people living in Japan.”
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But analysts said such a shift would be difficult. “Macau faces many challenges,” said David Green, founder of Newpage Consulting and former advisor to the Macau city government. “Domination.”
By 9 a.m. Friday, tourists had trickled into the city’s casinos, but non-gaming events, such as a stamp exhibition jointly organized by MGM China and Beijing’s Palace Museum, were largely ignored. Ta.
Mr. Guo, a 53-year-old driver from the neighboring city of Zhuhai in mainland China, said he had witnessed great changes since he first visited Macau in 1979. But as he emerged from the casino at Sands China’s Venetian Macau resort, he added: The government’s push for diversification made little difference to him.
“I just looked to see what my luck was like there,” he said. “I won over HK$500 (US$64) today, and that’s enough for me.”
