Macau has transformed from a gaming-centric economy into a city with a diversified economic structure, demonstrating resilience and stability, according to Chief Executive Ho Lat Seng.
According to local media reports, Ho noted that integrating into national development strategies, such as the Belt and Road Initiative (BRI) and the Guangdong-Hong Kong-Macau Greater Bay Area, has played a pivotal role in China’s Special Administrative Region (SAR) development.
Gaming’s declining share in the economy
Once synonymous with gaming, Ho said Macau is no longer dominated by this single sector. By 2023, gaming revenues had recovered to 75 percent of their 2019 levels, yet the industry’s share of gross domestic product (GDP) fell to just 37.2 percent. For the Chief Executive, this shift underscores the city’s growing diversification. Ho revealed to local reporters that Macau aims to increase the share of non-gaming sectors to 60 percent by 2028, recognising the vulnerabilities of an economy heavily reliant on gaming, particularly during crises like the COVID-19 pandemic.
During his tenure, Ho implemented stricter gaming regulations and revised gaming laws to encourage growth in non-gaming industries. The government’s strategic initiatives have laid the foundation for a broader economic base, moving beyond the historical dependence on gaming.
Cultural and tourism advancements
Macau’s “tourism-plus” strategy has been a cornerstone of its economic diversification. The city has leveraged its unique blend of Chinese and Western cultures, rich culinary heritage, and burgeoning performing arts industry to attract international visitors. The performing arts sector has flourished, boosting related industries such as retail, dining, and accommodation.
Last week, Macau’s Secretary for Social Affairs and Culture Elsie Ao Leong said that historic districts drew over 1.7 million visitors since 2023 through revitalisation efforts tied to the city’s 10-year casino license agreements, which require operators to rejuvenate older areas. Leong highlighted the success of these initiatives during a Legislative Assembly session, noting over 750 arts and cultural events that involved more than 200 service providers. These projects have also created platforms for over 200 cultural and creative businesses to showcase and sell their crafts, boosting the local economy and cultural vibrancy.
Infrastructure and social welfare investments
Ho’s administration has also prioritised infrastructure development and social welfare improvements, utilising the city’s robust fiscal reserves. Major projects include the Macau Medical Centre, which has enhanced healthcare services, and new headquarters for key public institutions. Affordable housing initiatives and free medical and educational policies have improved residents’ quality of life.
Despite substantial investments, Macau retains a strong fiscal position, with no external debt or bond issuances, ensuring financial stability for future administrations.
Integration into national development
Macau’s integration into China’s broader development framework remains a critical focus. The establishment of the Working Committee for Integrating into National Development has facilitated extensive cooperation with mainland China, including the creation of a Guangdong-Macau cooperation zone in Hengqin. These efforts have deepened economic, cultural, and social ties between Macao and the mainland, paving the way for sustained growth.
A vision beyond gaming
On December 20, Macau will mark the 25th anniversary of its return to the People’s Republic of China. The city is setting goals for its non-gaming industries and continued infrastructure investments.
Be part of the action! Join the world’s biggest iGaming community with SiGMA’s Top 10 News countdown. Subscribe for weekly updates, insider insights, and exclusive subscriber-only offers.
