Macau plans to combat gambling dependency
Cashing In on Change: Macau Unveils Gigantic Infrastructure Plans to Shake Up Economy
✍️ By Yannick Schroth, Reworked by Angela Burke, Publish Date: 01.05.2025
📸 Photo by: Jeffrey Lau/Pexels
Say Goodbye to Casinos Being King in Macau
Macau's CEO, Sam Hou Fai, has dropped a bombshell—four monumental infrastructure projects worth a whopping 4.2 billion EUR are coming to the Chinese Special Administrative Region. In an exclusive announcement to iGamingBusiness [English link], this bold move aims to slash the city's economic dependence on casino gaming, which dominates around 80% of its tax revenues.
Why the big change? Well, Sam sees it as a risk in the long run to have such a narrow revenue stream, especially considering the growing competition among Asian casinos and other global challenges like the US-China trade war.
Macau: A Special Administrative Region with Powerhouse Potential
🇧🇹 Photo by: Bjoertvedt/wikipedia
Macau, a former Portuguese colony, has relished in its special status as a Special Administrative Region (SAR) of the People's Republic of China, similar to Hong Kong, since 1999. By operating under the "One Country, Two Systems" principle, it boasts its own legal system, currency (Pataca), independent customs and tax policy, and far-reaching economic and political autonomy. This unique setup lets Macau seal international agreements independently, maintain an open economy, and act as a bridge between China and the West, all resting in the heart of the Greater Bay Area.
The game-changing projects are part of an ambitious long-term strategy focusing on moderate economic diversification laid out in its five-year plan and President Xi Jinping's guidelines. The total bill for these projects will set them back a cool 38.2 billion Pataca/MOP (around 4.2 billion EUR).
Join the University of Future Economies - Macau Hengqin Style
The most exciting venture, the Macau-Hengqin International Education City, is earmarking nearly 200 billion MOP (approximately 22 billion EUR) for its development. The University of Macau's new campus here is already under construction and will open in 2028. Phase 2 will welcome the University of Tourism to the mix.
Build in the Hengqin cooperation zone, a special development area on the border between the gambling city Macau and mainland China, this education city's main mission is to train highly skilled specialists in tourism, leisure, and international cooperation. It plays a vital role in Macau's "One Center, One Platform, One Base" strategy, aiming to revive its historic role as a bridge between China and Europe.
Savor Macau's Rich Culture in a Nutshell
A cultural quarter, costing an estimated 120 billion MOP (13.2 billion EUR), has been budgeted for the land between the Macau Peninsula and Taipa, currently underdeveloped. This vibrant new district will feature a national museum, international arts center, and museum of modern art, slated to serve as cultural landmarks. Construction is projected to last two to three years.
Sam envisions Macau becoming a leading cultural hub in Asia, bringing international attention to China's cultural heritage. Chinese national museums are expected to lend exhibits to this ambitious project.
Ascend in the Skies Above Macau
A massive 60 billion MOP (approximately 6.6 billion EUR) is being invested in the expansion of Macau International Airport. With central government approval already in the picture, construction work is underway. Key enhancements include land reclamation to extend the runway, and airport infrastructure updates to transform Macau into a significant aviation hub on the western banks of the Pearl River Delta.
Currently boasting over 50 international flight connections, Macau plans to deepen cooperation with Zhuhai Jinwan Airport, which primarily handles domestic flights. Together, they aim to provide logistics and transportation services for cross-border e-commerce and the high-tech industry in the Greater Bay Area.
Technology Park: The New Home for Innovation
🏭 Photo by doraemon.tvb/wikipedia
Plans for the Macau Technology R&D Industrial Park are in the works, with a goal to attract top-tier research centers from international corporations. Custom-tailored infrastructure and support mechanisms will ensure the long-term presence of hi-tech companies both within and outside China in Macau. Research on suitable sites, operational styles, and political backing is currently underway.
The government will enlist external expert bodies to develop a viable concept, ultimately integrating the research park into the Greater Bay Area network and promoting Macau as a haven for technical prowess.
Embracing Hengqin for Macau's Economic Growth
To support these groundbreaking projects, Macau is cooked up a new set of civil and economic regulations tailored to the Hengqin cooperation zone. These regulations will provide investors with improved legal certainty, predictability, and stability. As reported by The Macao News, these new rules will make it easier for companies to do business in Hengqin, fostering economic growth.
As competitors nip at its toes in the gaming and tourism sectors, Macau has no choice but to strengthen ties with neighboring cities and boost genuine economic activities in Hengqin. Currently, many companies registered in Hengqin haven't gotten off the ground.
To ensure smooth coordination and implementation of these projects, six interdisciplinary management boards and working groups are already operational.
"Macau cannot remain untouched as the competition in tourism and gaming intensifies with neighboring cities. Such risks and challenges should not be disregarded." - Sam Hou Fai, CEO of Macau, iGamingBusiness.
- What do these infrastructure projects in Macau aim to do? They aim to slash Macau's economic dependence on casino gaming, which currently dominates around 80% of its tax revenues.
- Where is the Macau-Hengqin International Education City planned to be built? It is planned to be built in the Hengqin cooperation zone, a special development area on the border between Macau and mainland China.
- What is the main mission of the Macau-Hengqin International Education City? The main mission of the Macau-Hengqin International Education City is to train highly skilled specialists in tourism, leisure, and international cooperation.
