Xi Jinping Wants Macau To Diversify Economy From Gaming

Chinese President Xi Jinping believes Macau should diversify its economy beyond gaming. 

There is an urgent need for the Macau to diversify its economy, which remains heavily reliant on the gaming industry, Chinese President Xi Jinping said.

His remarks were part of the celebrations commemorating the 25th anniversary of Macau’s handover to China and followed the inauguration of the Special Administrative Region (SAR) new Chief Executive, Sam Hou Fai. In his address, President Xi acknowledged Macau’s progress in economic recovery following the challenges posed by the COVID-19 pandemic but stressed the importance of reducing dependence on the casino sector.

“Efforts should be made to promote moderate economic diversification... and focus on cultivating new industries with international competitiveness,” Xi stated. 

While Macau’s GDP grew by an impressive 11.5 percent during the first three quarters of 2024, the SAR’s reliance on gaming remains stark. Over 81 percent of government revenue still comes from gaming-related taxes. This dependence was particularly highlighted during the pandemic, when the city’s economy suffered heavily due to reduced tourism and casino closures.

The situation prompted Beijing to call for structural economic reforms, emphasizing the risks of relying too heavily on a single sector. Macau’s six casino operators, who renewed their licenses in 2022, committed to investing $14.9 billion ($20.13 billion) in non-gaming ventures. These include projects such as theme parks, cultural attractions, and conference venues. Moreover, six historic areas have been earmarked for revitalization, with each concessionaire tasked with contributing to these efforts.

Macau’s new Chief Executive, Sam Hou Fai, aligned his vision with President Xi’s directives, emphasizing the need to address economic imbalances and improve the quality of life for residents. In his inaugural speech, Sam highlighted critical areas for reform, including social security, healthcare, elderly care, and urban redevelopment.

Sam proposed accelerating the implementation of the “1+4” strategy, which aims to nurture four emerging industries: Meetings, Incentives, Conferences, and Exhibitions (MICE); technology; healthcare; and finance. The strategy also supports the development of traditional industries and small to medium-sized enterprises (SMEs), fostering a more diversified and resilient economic landscape.

Macau’s journey toward economic diversification represents a pivotal moment in its history. While the gaming sector has undoubtedly driven its prosperity, the SAR’s leadership recognizes the necessity of building a more balanced and sustainable economy. As Macau celebrates 25 years since its handover to China, the focus now shifts to laying the groundwork for a future less reliant on gaming and more aligned with global economic trends.

With strong backing from Beijing and a clear roadmap from its new Chief Executive, Macau is poised to evolve into a more diversified and dynamic economy. However, achieving this transformation will require sustained effort, innovation, and collaboration across sectors.

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