Guarantee Macao’s prosperity
(source: www.chinaview.cn 2006-09-16)
Guarantee Macao’s prosperity
www.chinaview.cn 2006-09-16
BEIJING, Sept. 16 — Over six years after China regained sovereignty over the Special Administration Region (SAR) of Macao, the region has achieved unprecedented economic prosperity, and is a hot destination for investors from around the world.
Official statistics show that the gaming industry generated MOP45.8 billion in revenue in 2005. While Macao’s government raised MOP18 billion in public revenue, 8.25 per cent more than 2004.
Such great achievements are based on solid ground because they are the result of wise choices by the policy makers of the SAR’s government.
Sticking to the “one country two systems” principle, the government of Macao stimulated the local economy with the gaming industry as its major engine.
To improve the industry’s efficiency, it carried out substantial gaming reforms while it also tried to diversify its economy by developing tourism, retail and other sectors.
Therefore, sustainable economic growth is expected for Macao in the years to come.
As early as 1999, Macao’s government had formulated its economic policy with the gaming industry at the core.
The “one country two systems” principle and the promise of keeping policies towards Macao unchanged for 50 years helped make a good environment for the region to retain its gaming industry, despite gambling being banned in mainland China.
As early as the 19th century, the gaming industry was allowed in Macao. The reasons were simple the region did not have enough space for manufacturers, neither could it compete with Hong Kong as a key port in Southeast Asia.
Therefore, the gaming industry and tourism became realistic ways of stimulating the local economy thanks to the region’s beautiful scenery and rich and diversified culture.
After evolving over 100 years, the gaming industry has become the sole pillar of Macao’s economy. By 1999, it contributed 30 per cent of Macao’s GDP and over 50 per cent of the total tax revenue.
Moreover, most of the tourist activities in Macao are related to the gaming industry. Hotels and restaurants almost directly depend on gambling.
Knowing these facts clearly, the SAR’s government focused on the gaming industry and made every effort to support its growth.
However, Macao’s government did not sit back and enjoy the success of the gaming industry. Instead, it looked beyond and tried to ensure a sustainable growth for the industry.
Under a traditional monopoly, the gaming industry may soon see a bottleneck for its further expansion. The SAR’s government decided to introduce competition in order to inject more vigor into the industry as well as forging a new brand for the city.
By 2006, the government had signed concession contracts with six casino operators.
The competition brought instant effects. Sands Macau, invested by the legendary Sands Las Vegas, was opened in May 2004. It pocketed MOP3.11 billion in gaming revenue that year and the figure rocketed to MOP7.7 billion in 2005.
The existence of Sands Macau and its breath-taking business success in such a short time rocked the gaming industry.
More new-style casinos were built and other entertainment facilities were developed, including hotels and casinos invested by Macau Wynn, Galaxy Casino and Sociedade de Jogos de Macau. Investors from Asia, Australia and Taiwan Province are building theme parks, exhibition centres and other resorts.
Tourism in Macao, which traditionally centred on casinos, is becoming more diverse with more attractions and activities, including exhibitions, conferences, holiday parks and shopping centres.
Excepting for the money spent in casinos, tourists spent 19.9 per cent more money in the first three months of 2006 than the same time last year. And experts estimate that the number of tourists visiting Macao each year will exceed 20 million in 2006.
What has been achieved in Macao after China resumed sovereignty is solid proof that the “one country two systems” principle and the central government’s decision not to alter policies relating to Macao for 50 years are the cornerstones of the SAR’s prosperity.
Macao’s government is rewarding local people by sticking to the principle and making every effort to stimulate economic and social development.Enditem
Sources: China Daily
Date Posted: 16-Sep-2006
