Sam Hou Fai Elected as Macau Chief Executive Amid Calls for Economic Diversification

October 15, 2024 Macau Industry Updates

Sam Hou Fai has been named as Macau’s next chief executive, marking a significant shift in the governance of the Chinese casino hub. This election is notable as Sam will be the first chief executive born in mainland China. According to multiple media reports, he received overwhelming support from the election committee, with 394 out of 398 votes cast in his favor, reflecting a clear endorsement from Beijing loyalists. The election deviated from the tradition of selecting leaders from influential business families typically rooted in the former Portuguese colony.

Sam, 62, was previously Macau’s top judge and is seen as having the backing of Beijing. During the nomination period, he secured endorsements from 386 members of the election committee, indicating a strong alignment with the central government’s policies. After his election on October 13, 2024, he expressed gratitude, stating, “It is the highest honor of my life,” as he received applause from the committee members.

Sam was born in 1962 in Guangdong, a southern province of China. He earned his law degree from the renowned Peking University in Beijing. Additionally, he pursued studies in Portuguese language, culture, and law at the University of Coimbra in Portugal, and he has experience practicing law in mainland China.

Macau stands out as the sole region in China where casino gambling is permitted. In response to its heavy reliance on gambling, Beijing has urged the city to diversify its economy.

One of the central themes of Sam’s leadership will be the need for economic diversification in Macau. This comes in response to Beijing’s calls for the city to reduce its heavy reliance on the gambling sector. While the gaming industry remains a crucial source of revenue for the government, Sam aims to broaden Macau’s economic base by promoting sectors such as tourism, traditional Chinese medicine, finance, and commerce.

In a press conference after his election, Sam highlighted the vital support Macau has received from Mainland China during challenging times. He addressed various crises the region has endured, including the financial downturn, the SARS outbreak, and the COVID-19 pandemic, all of which were met with considerable assistance from the central government. He pointed out, “Whenever Macau faces difficulties, the country is always there to lend a helping hand.”

Sam announced that Macau attracted around 900,000 visitors during the recent October Golden Week, with a striking 83 percent coming from mainland China. This influx of tourists has significantly boosted the local economy and played a crucial role in the region’s post-pandemic recovery efforts.

As the chief executive-designate of Macau prepares to take office on December 20, coinciding with the 25th anniversary of Macau’s handover to China, he has pledged to uphold national sovereignty and better integrate Macau into national development plans. His promise to accelerate economic diversification aligns with Beijing’s vision of transforming Macau into a world-class tourism and leisure center while strengthening its position as a bridge for trade with Portuguese-speaking countries.

As he steps into this leadership role, Sam faces significant challenges. Analysts suggest that the real tests will come in forming a competent cabinet capable of addressing pressing issues. With local businesses struggling due to competition from nearby Zhuhai and changing spending habits among Chinese tourists, the need for effective governance is more urgent than ever.

Sam’s approach to governance will be closely scrutinized as he emphasizes the active role of the government in a capitalistic economy. He stated, “In the future, we have to enhance the government’s ways of making decisions and such capabilities.” This proactive stance suggests a shift from passive governance, indicating that Sam aims to strengthen the government’s decision-making processes and overall capabilities.