Page 120 - 2019 Special Report on the State of Business in South China
P. 120
Macao Special Administrative Region
The Economy While its gross gaming revenue (GGR) has far
exceeded Las Vegas, Macao is in the process of
Macao is located on the south-eastern diversifying itself as a tourism destination. The
coast of China, along the west government seeks to re-brand Macao as a regional hub
bank of the Pearl River estuary. It is 60km and 145km in tourism, exhibitions, and small- and medium-sized
away from Hong Kong and Guangzhou respectively, enterprise business services within the region.
and shared a border with Zhuhai to the North. With
a population of 653,100 in an area of 30.8 square In terms of economic structure, Macao has been rated
kilometers, it is the most densely populated region by the World Trade Organization (WTO) as one of the
in the world. Macao has had the status of Special most open trade and investment regimes in the world.
Administrative Region (SAR) in China since it was It is a free port and an independent tariff zone, with a
returned from being a Portuguese colony in 1999. corporate profit tax rate of no more than 12%, and a far-
reaching international marketing network and close ties
Macao’s economy is heavily dependent on tourism with the Portuguese-speaking Countries. Macao’s role
and gaming. By share of GDP, gaming alone accounted as a trade and economic co-operation service platform
for 49.1% of Macao’s GDP in 2017 while the tertiary between China and Portuguese-speaking Countries has
industry, which includes the peripheral sectors such as received increasing recognition over the years.
retail, accommodations, and transportation, amounted
to 94.9% of GDP. In 2017, gross revenue of the gaming The implementation of the Mainland and Macao
industry brought US$33.02 billion to Macao, over three Closer Economic Partnership Arrangement and the Pan-
times more than Las Vegas. Pearl River Delta Regional Co-operation Framework
Agreement, the Framework for Development and Reform
Macao is among the world’s richest regions, such that Planning for Pearl River Delta Region, the Framework
the International Monetary Fund (IMF) projected that Agreement on Co-operation between Guangdong
the city will overtake Qater to become the place with the and Macao, as well as the Framework Agreement on
world’s highest per-capita GDP by 2020. Subsequently, Deepening Guangdong-Hong Kong-Macao Cooperation
its unemployment rate has consistently been below 2.0% in the Development of the Bay Area will further enhance
in the past five years, reflecting a tight labor market with the economic integration of the Pan PRD region.
strong demand especially from the gambling industry.
Recent Policies and Reforms
In 2002, the Macao government ended the monopoly
system since 1962 and six casino operating concessions As in the update of CEPA with Hong Kong, the
and subconcessions are granted to Sociedade de Ministry of Commerce also signed new agreements on
Turismo e Diversões de Macao, Wynn Resorts, Las Vegas investment and technical cooperation with Macao in
Sands, Galaxy Entertainment Group, the partnership December 2017. From January 1, 2004 to November
of MGM Mirage and Pansy Ho (daughter of Stanley 30, 2018, Macao Economic Bureau has issued 5,418
Ho), and the partnership of Melco and Publishing and CEPA certificates of origin, involving products of total
Broadcasting Limited (PBL). It set off a rapid phase of export value of MOP942 million with an estimate tariff
growth of the gaming and tourism industry. In 2017, saving amounting to MOP66 million. With respect of
Macao was destination to 32.6 million tourist, up from trade in services, Macao has approved 631 “Macao
11.5 million in 2002. Service Supplier” certificates, which suggests that the
benefit on the economic development of Macao has
been substantial.
120
The Economy While its gross gaming revenue (GGR) has far
exceeded Las Vegas, Macao is in the process of
Macao is located on the south-eastern diversifying itself as a tourism destination. The
coast of China, along the west government seeks to re-brand Macao as a regional hub
bank of the Pearl River estuary. It is 60km and 145km in tourism, exhibitions, and small- and medium-sized
away from Hong Kong and Guangzhou respectively, enterprise business services within the region.
and shared a border with Zhuhai to the North. With
a population of 653,100 in an area of 30.8 square In terms of economic structure, Macao has been rated
kilometers, it is the most densely populated region by the World Trade Organization (WTO) as one of the
in the world. Macao has had the status of Special most open trade and investment regimes in the world.
Administrative Region (SAR) in China since it was It is a free port and an independent tariff zone, with a
returned from being a Portuguese colony in 1999. corporate profit tax rate of no more than 12%, and a far-
reaching international marketing network and close ties
Macao’s economy is heavily dependent on tourism with the Portuguese-speaking Countries. Macao’s role
and gaming. By share of GDP, gaming alone accounted as a trade and economic co-operation service platform
for 49.1% of Macao’s GDP in 2017 while the tertiary between China and Portuguese-speaking Countries has
industry, which includes the peripheral sectors such as received increasing recognition over the years.
retail, accommodations, and transportation, amounted
to 94.9% of GDP. In 2017, gross revenue of the gaming The implementation of the Mainland and Macao
industry brought US$33.02 billion to Macao, over three Closer Economic Partnership Arrangement and the Pan-
times more than Las Vegas. Pearl River Delta Regional Co-operation Framework
Agreement, the Framework for Development and Reform
Macao is among the world’s richest regions, such that Planning for Pearl River Delta Region, the Framework
the International Monetary Fund (IMF) projected that Agreement on Co-operation between Guangdong
the city will overtake Qater to become the place with the and Macao, as well as the Framework Agreement on
world’s highest per-capita GDP by 2020. Subsequently, Deepening Guangdong-Hong Kong-Macao Cooperation
its unemployment rate has consistently been below 2.0% in the Development of the Bay Area will further enhance
in the past five years, reflecting a tight labor market with the economic integration of the Pan PRD region.
strong demand especially from the gambling industry.
Recent Policies and Reforms
In 2002, the Macao government ended the monopoly
system since 1962 and six casino operating concessions As in the update of CEPA with Hong Kong, the
and subconcessions are granted to Sociedade de Ministry of Commerce also signed new agreements on
Turismo e Diversões de Macao, Wynn Resorts, Las Vegas investment and technical cooperation with Macao in
Sands, Galaxy Entertainment Group, the partnership December 2017. From January 1, 2004 to November
of MGM Mirage and Pansy Ho (daughter of Stanley 30, 2018, Macao Economic Bureau has issued 5,418
Ho), and the partnership of Melco and Publishing and CEPA certificates of origin, involving products of total
Broadcasting Limited (PBL). It set off a rapid phase of export value of MOP942 million with an estimate tariff
growth of the gaming and tourism industry. In 2017, saving amounting to MOP66 million. With respect of
Macao was destination to 32.6 million tourist, up from trade in services, Macao has approved 631 “Macao
11.5 million in 2002. Service Supplier” certificates, which suggests that the
benefit on the economic development of Macao has
been substantial.
120
