Page 150 - 2020 Special Report on the State of Business in South China
P. 150
Macao
The Economy 2018, Macau was destination to 35.8m tourist, up
from 11.5m in 2002.
Macau is located on the south-
eastern coast of China, While its GGR has far exceeded Las Vegas,
along the west bank of the Pearl River estuary. It Macau is in the process of diversifying itself as
is 60km and 145km away from Hong Kong and a tourism destination. The government seeks
Guangzhou respectively, and shared a border to re-brand Macau as a regional hub in tourism,
with Zhuhai to the North. With a population of exhibitions, and small- and medium-sized
653,100 in an area of 30.8 sq km, it is the most enterprise business services within the region.
densely populated region in the world. Macau has
had the status of Special Administrative Region In terms of economic structure, Macau has
(SAR) in China since it was returned from being a been rated by the World Trade Organisation (WTO)
Portuguese colony in 1999. as one of the most open trade and investment
regimes in the world. It is a free port and an
Macau’s economy is dependent on tourism and independent tariff zone, with a corporate profit
gaming. By share of GDP, gaming alone accounted tax rate of no more than 12%, and a far-reaching
for 52.3% of Macau’s GDP in 2018 while the international marketing network and close ties with
tertiary industry, which includes the peripheral the Portuguese-speaking Countries. Macao’s role as
sectors such as retail, accommodations, and a trade and economic co-operation service platform
transportation, amounted to 94.9% of GDP. In between China and Portuguese-speaking Countries
2018, gross revenue of the gaming industry (GGR) has received increasing recognition over the years.
brought USD37.6b to Macau, over three times
more than Las Vegas. The implementation of the Mainland and
Macau Closer Economic Partnership Arrangement
Macau is among the world's richest regions, (CEPA) and the Pan-Pearl River Delta Regional Co-
such that the International Monetary Fund (IMF) operation Framework Agreement, the Framework
projected that the city will overtake Qater to become for Development and Reform Planning for Pearl
the place with the world’s highest per-capita GDP River Delta Region, the Framework Agreement on
by 2020. Subsequently, its unemployment rate Co-operation between Guangdong and Macao, as
has consistently been around 2.0% in the past five well as the Framework Agreement on Deepening
years, reflecting a tight labor market with strong Guangdong-Hong Kong-Macao Cooperation in the
demand especially from the gambling industry. Development of the Bay Area will further enhance
the economic integration of the Pan PRD region.
In 2002, the Macau government ended the
monopoly system since 1962 and six casino Recent Policies and Reforms
operating concessions and subconcessions are
granted to Sociedade de Turismo e Diversões de Closer Economic Partnership Agreements
Macau, Wynn Resorts, Las Vegas Sands, Galaxy between Mainland China and Macau
Entertainment Group, the partnership of MGM
Mirage and Pansy Ho (daughter of Stanley Ho), On December 14, 2018, the Ministry of
and the partnership of Melco and Publishing and Commerce issued the “Closer Economic
Broadcasting Limited (PBL). It set off a rapid phase Partnership Agreements between Mainland
of growth of the gaming and tourism industry. In
150
The Economy 2018, Macau was destination to 35.8m tourist, up
from 11.5m in 2002.
Macau is located on the south-
eastern coast of China, While its GGR has far exceeded Las Vegas,
along the west bank of the Pearl River estuary. It Macau is in the process of diversifying itself as
is 60km and 145km away from Hong Kong and a tourism destination. The government seeks
Guangzhou respectively, and shared a border to re-brand Macau as a regional hub in tourism,
with Zhuhai to the North. With a population of exhibitions, and small- and medium-sized
653,100 in an area of 30.8 sq km, it is the most enterprise business services within the region.
densely populated region in the world. Macau has
had the status of Special Administrative Region In terms of economic structure, Macau has
(SAR) in China since it was returned from being a been rated by the World Trade Organisation (WTO)
Portuguese colony in 1999. as one of the most open trade and investment
regimes in the world. It is a free port and an
Macau’s economy is dependent on tourism and independent tariff zone, with a corporate profit
gaming. By share of GDP, gaming alone accounted tax rate of no more than 12%, and a far-reaching
for 52.3% of Macau’s GDP in 2018 while the international marketing network and close ties with
tertiary industry, which includes the peripheral the Portuguese-speaking Countries. Macao’s role as
sectors such as retail, accommodations, and a trade and economic co-operation service platform
transportation, amounted to 94.9% of GDP. In between China and Portuguese-speaking Countries
2018, gross revenue of the gaming industry (GGR) has received increasing recognition over the years.
brought USD37.6b to Macau, over three times
more than Las Vegas. The implementation of the Mainland and
Macau Closer Economic Partnership Arrangement
Macau is among the world's richest regions, (CEPA) and the Pan-Pearl River Delta Regional Co-
such that the International Monetary Fund (IMF) operation Framework Agreement, the Framework
projected that the city will overtake Qater to become for Development and Reform Planning for Pearl
the place with the world’s highest per-capita GDP River Delta Region, the Framework Agreement on
by 2020. Subsequently, its unemployment rate Co-operation between Guangdong and Macao, as
has consistently been around 2.0% in the past five well as the Framework Agreement on Deepening
years, reflecting a tight labor market with strong Guangdong-Hong Kong-Macao Cooperation in the
demand especially from the gambling industry. Development of the Bay Area will further enhance
the economic integration of the Pan PRD region.
In 2002, the Macau government ended the
monopoly system since 1962 and six casino Recent Policies and Reforms
operating concessions and subconcessions are
granted to Sociedade de Turismo e Diversões de Closer Economic Partnership Agreements
Macau, Wynn Resorts, Las Vegas Sands, Galaxy between Mainland China and Macau
Entertainment Group, the partnership of MGM
Mirage and Pansy Ho (daughter of Stanley Ho), On December 14, 2018, the Ministry of
and the partnership of Melco and Publishing and Commerce issued the “Closer Economic
Broadcasting Limited (PBL). It set off a rapid phase Partnership Agreements between Mainland
of growth of the gaming and tourism industry. In
150
