Macau chief executive: New development projects will reduce reliance on gaming

Macau chief executive Sam Hou Fai listed four development projects unrelated to gaming that he says will contribute to a more resilient local economy.

In 2024, gaming contributed about 80% of total tax revenue in Macau, Sam pointed out. That’s an unsustainable imbalance, especially as competition in the gaming industry increases.

Sam’s plan, reported by Macau Business, includes MOP38.2 billion (£3.5 billion/€4.167 billion/$4.75 billion) in investments in the Greater Bay Area. The GBA consists of the special administrative regions (SARs) of Macau and Hong Kong and nine cities in Guangdong Province. 

Gaming operators are on the hook for at least some of the improvements, as a condition of the concessions that were renewed in 2023. The projects should be complete in the next eight to 10 years.

Advancing education, culture, aviation, tech

The projects, unveiled by Sam at a press briefing on 27 April, include:

•  A MOP20 billion investment in the Macau-Hengqin International Education University Town and the addition of a MOP12 billion Integrated Cultural and Tourism Zone.
• An MOP12 billion Integrated Cultural and Tourism Zone that includes a National Museum, an International Arts Centre and an International Exhibition Centre. All will highlight Macau’s unique fusion of Portuguese and Chinese cultures.
• The MOP6 billion expansion of Macau International Airport, designed to increase passenger capacity from 10 million to 15 million per year by 2030.
• A Macau Technology R&D Industrial Park, which Sam hopes will bring more international research and development business to the SAR.
  

Effects of US tariffs “indirect” but meaningful

Sam said recent US-China trade tensions may not directly affect Macau. But the impact of tariff hikes on other countries could negatively affect tourism to the gaming hub. And that, by extension, could take a bite out of gaming revenue, still the lifeblood of the SAR budget.

For that reason, Sam said, the city must develop new industries internally and also deepen alliances with other cities in the GBA.

Diversification is a recurring theme for Sam, as it was for his predecessor, former chief executive Ho Iat-Seng, who stepped down in December.

“Macau cannot remain unscathed as competition in tourism and gaming from neighbouring cities intensifies and looms,” Sam said in February. “Such risks and challenges must not be overlooked.”