Out of the Shadow of Negative Growth

Ma Man Kei, chairman of the Macao Chamber of Commerce, recently said, "Macao's economy stagnated at a negative growth rate for four successive years before it returned to China. During the first year after its hand-over, however, its economy saw a 4.6 percent of growth. This year, economic development will continue to grow steadily."

"Monte Carlo of the East"

Macao, Las Vegas (US), and Monte Carlo (Monaco) are known as the three Gaming Cities of the world. Half of the Macao government's fiscal revenue comes from its gaming industry, and nearly 30 percent of Macao's residents benefit directly or indirectly from it. Macao's gaming industry falls under three main categories: casinos; horse and dog racing, and pelota; and lotteries. Casinos are the overall favorite venue for gambling, and the revenue they generate accounts for over 90 percent of gaming industry earnings as a whole. In Casino Lisboa, Dr. Stanley Ho Hung Sun, general manager of the Tourism and Entertainment Company (TEC), gave an interview to China Today.

Ho said, "Macao's gaming industry has developed over a long period and has accumulated experience unparalleled in casinos in other parts of Asia. As a modern and diversified industry, Macao's gaming has always taken the leading role in this field in Asia."

TEC has retained the gaming industry franchise in Macao for over half a century. The Macao SAR government has, however, recently decided to "go public" with this industry. So far a total of 22 expressions of interest as regards casino gaming concessions, emanating from Macao, Hong Kong, Southeast Asia, England, and America, have been received by Chief Executive Edmund Ho. The government plans to issue three licenses. As from next year, therefore, a competitive element will be introduced to Macao's gaming industry. Ho Hau Wah stresses that the MSAR government will treat any international bid strictly according to the relevant laws and regulations, and in line with the principles of fairness and openness. In Stanley Ho's opinion, "From a long term point of view, it will be beneficial for us to raise our gaming industry management standards, within the scope of gradual and steady competition. In so doing, we can promote Macao's overall economic development. We support the government's decision to open the gaming industry to the public, and are at the same time confident of our ability to compete. We already own two of the eight casinos in Portugal, one of them the largest in Europe. There are those that believe that we are concerned only about the gaming industry, which is pure prejudice. We also regard it our responsibility to contribute to Macao's prosperity as a whole, so as to promote social welfare and raise Macao living standards." Many municipal works throughout China, including the Chinese Millennium Monument in Beijing and the Macao Sightseeing Tower, have been built as a result of donations from Stanley Ho.

After the hand-over, the Macao Jockey Club also experienced unprecedented prosperity. Kenneth Liang Kin Man, president of the association, said, "Over the past (2000/2001) season, total stakes exceeded HK$ 4 billion -- a 10 percent increase over the previous year. During the new season, stakes are 5 percent higher than the same period last year. We are therefore very optimistic about our future." During the first year after the hand-over, the Macao Jockey Club sponsored the 26th Session of the Asian Horse Races, in which more than 500 overseas professionals participated. In 2001, it also sent horses to take part in races held in other countries, with good results.

Dog racing is also very popular with Macao people. The Macao (Yat Yuen) Canidrome Co., Ltd. has 700 racing dogs -- all of them hunting dogs purchased from Australia. Before the contest, the participating dogs are led by their trainers to the ground and paraded before the spectators, and stakes are made according to the impression thus gained of the dogs participating. Dog racing is held at night, when people relax after a hard day's work.

Ye Rongfa has a broad scope of work experience. He worked at Casino Lisboa for five years, then for a further five years at a horse racing ground. In 1993, he became involved in real estate, and he now works in the networking business. Drawing from his own experience, he concludes that tourism and gaming industries are relatively easier to carry on in Macao, and after the opening of the gaming industry to the public, there should be even more business opportunities.

Fisherman's Wharf, the largest tourism project since Macao's hand-over, will be completed in two years. The project, co-developed by Stanley Ho and David Chow, president of Macao Landmark Convention & Exhibition Center, consists of a platform on the sea, covering an area of 1 million square feet. On the Fisherman's Wharf, visitors may view architecture of different styles and historic periods worldwide in just eight hours, or sample dishes from a vast gastronomic scope. Fisherman's Wharf will be the first theme park in Macao.

Apart from its gaming, Macao is also an ideal destination for cultural and sports tourism. According to sources, a total of 7.7 million tourists visited Macao from January to September 2001 -- an increase of 12.6 percent compared with the same period last year. People from Hong Kong account for half of the total number of tourists, the rest mainly comprising visitors from the mainland, Taiwan and Japan.

Chui Sai On, secretary for social affairs and culture, says, "The MSAR government has paid close attention to the development of the tourism industry since its establishment. We received 9.81 million tourists in 2000, which was the largest number ever. Macao's tourist appeal has three main aspects: the gaming industry; European customs; and food and cultural heritage as represented by its 12 museums. We are at present applying to incorporate 17 of our cultural relics into the UN world cultural heritage. By associating its tourism with culture and sports, Macao will become an even more popular international tourist destination, and the opening up of Macao's gaming industry will further elevate the level of our tourism services."

Macao is strongly influenced by Mazu (the Goddess of the Sea) culture. The Mazu Cultural Festival that concluded at the end of October attracted tens of thousands of Mazu believers. The festival obviously reflects the combination of tourism and culture in Macao. Chief Executive Ho Hau Wah expressed in his address to the public that since the interactive relations between culture, tourism and the economy have been widely acknowledged throughout the world, the MSAR government will also go all out to tap Macao's unique cultural resources with the aim of attracting more tourists.

Another of Macao's distinguishing characteristic is its blend of tourism and sports. Manuel Silverio, president of the Macao Sports Development Board, says, "The completion of Disneyland in Hong Kong in 2005, and the completion of Fisherman's Wharf in 2003 is bound to enhance the success of the 2005 East Asian Games. We shall also take up the advantages offered by the Games to increase further Macao's comprehensive appeal to tourists, and to accelerate our tourism development."

Huge Economic Development Potential

Since Macao has limited resources, it has to look outside for business opportunities. Ho Hau Wah says that the government intends to utilize income from its gaming industry to develop information, science and technology, and other economic sectors.

The 21st century will mainly be characterized by "speed." High efficiency, new knowledge, and rapid conveyance of information will be common requirements within society, necessitating an advanced information industry. Macao has already begun to develop its high technology products. The First Session of the Macao Information Exposition held after the hand-over, and the Information, Science and Technology Week held last October have forged closer links between Macao's IT industry and its commerce. Chui Sai On says that development of the information industry is a priority item on the government's working agenda.

At the APEC CEO Summit 2001 in Shanghai, Ho Hau Wah expressed his wish to turn Macao into a major entrepot, linking the Chinese hinterland with the rest of the world. He said, "Macao is just a short distance from Hong Kong, Taiwan, Guangdong and Fujian, and within reach from several Southeast Asian countries. Apart from factors of geographical proximity, the overseas Chinese communities all over the world have also contributed to Macao's extensive network of links with the outside world. The Chinese mainland continues to enjoy sustained and strong economic growth, providing Macao with a vast hinterland for future development. The large number of regular daily passenger and cargo flights between Macao and Taiwan has resulted in the development of solid business ties between the two sides. We have now trade and investment relations with well over a hundred countries."

To facilitate its economic development strategy, Macao has twice held its International Trade & Investment Fair, with the aim of acting as a hub for small and medium-sized enterprises that are interested in doing business with China.

Although influenced by the 9/11 event, Macao's economy can still maintain a steady growth this year.