Macao, the famed casino center, has received calls for economic diversification from Chinese President Xi Jinping during a ceremony pledging in the region’s new government on Friday. This event commemorated the 25th anniversary of the territory’s transition from Portuguese to Chinese administration.
Now serving as Chief Executive, Sam Hou Fai, the first individual from mainland China to hold this office, committed to addressing the imbalance and lack of coordination in the region’s economic development.
Since returning to Chinese control in 1999, Macao, with its population of approximately 687,000, has transitioned from being a gambling monopoly to becoming the world’s largest gaming destination, primarily driven by a flow of tourists from mainland China. This surge in the casino industry has contributed to improved living standards; however, experts worry about the city’s heavy reliance on this sector for economic stability.
Young residents express concerns that the economy’s focus on tourism limits their job opportunities and hampers the region’s broader development potential. Critics argue that the abundance of tourist dollars has led local businesses to stagnate rather than innovate, with many residents opting to rely on personal networks for assistance rather than engaging in civic activities.
During a celebratory dinner on Thursday, President Xi acknowledged the strides Macao has made over the past five years in diversifying its economy and expanding its global influence. He emphasized the necessity for the region to enhance its international engagement and attract talent from around the world for a more prosperous future.
On Friday, Xi addressed the need for improved industrial development strategies, stronger policy support, and increased investment to cultivate competitive industries capable of thriving on the global stage, indicating a sharper and more detailed approach compared to previous communications.
Xi highlighted the importance of nurturing the youth, stating, “The government and all sectors must show more care to young people, fostering an environment conducive to their growth and talent development.”
In his agenda as Chief Executive, Sam Hou Fai reiterated his commitment to enhancing tourism along with expanding sectors like Chinese medicine, finance, technology, exhibitions, and commerce.
Despite Macao’s political landscape remaining relatively stable, authorities have tightened their grip in recent years, particularly in the wake of extensive protests in Hong Kong during 2019. Political discourse has been largely suppressed; for instance, a vigil commemorating the Tiananmen Square incident was prohibited, and pro-democracy candidates were disallowed from participating in legislative elections last year, coinciding with a reinforcement of national security laws.
During his address, Xi remarked that “national sovereignty, security and development interests take precedence” while also highlighting the importance of maintaining the territory’s autonomy. He underscored that security is a prerequisite for development, urging residents to value their hard-earned stability and tranquility.
Macao, similar to Hong Kong, enjoys a distinct governing status that allows it to retain certain Western economic and social practices. It remains the sole city in China where casino gambling is permitted.
As Beijing increasingly influences Macao’s development agenda, the city is forging closer economic relations and societal integration with Guangdong province.
A designated special zone on Hengqin Island, jointly overseen by Guangdong and Macao, aims to boost the establishment of new industries, anticipating a population of around 120,000 Macao residents by 2035.
Xi urged Macao to take an active role in the Greater Bay Area initiative, which is designed to connect Macao, Hong Kong, and nine other cities in Guangdong into a dynamic economic entity.
Concluding his three-day visit to Macao on Friday, Xi participated in various events, including visits to a university and the Hengqin Island special zone, along with attending a grand cultural performance. He engaged in discussions with former leaders of Macao and Hong Kong’s chief executive, among others.
After bidding farewell to Xi at the airport, Sam assured reporters of his commitment to confront challenges with courage, emphasizing his vision for a governance approach that is transparent, practical, and attentive to the needs of the populace.