Page 144 - 2021 Special Report
P. 144
Macao
The Economy In terms of economic structure, Macau has
been rated by the World Trade Organization (WTO)
Macau is located on the south- as one of the most open trade and investment
eastern coast of China, along regimes in the world. It is a free port and an
the west bank of the Pearl River estuary. It is 60km independent tariff zone, with a corporate profit
and 145km away from Hong Kong and Guangzhou tax rate of no more than 12%, and a far-reaching
respectively, and shares a border with Zhuhai to international marketing network with close ties to
the north. With a population of 653,100 in an area Portuguese-speaking countries. Macau’s role as a
of 30.8 sq km, it is the most densely populated trade and economic co-operation service platform
region in the world. Macau has had the status of between China and Portuguese-speaking countries
Special Administrative Region (SAR) in China since has received increasing recognition over the years.
it was returned from being a Portuguese colony in
1999. Implementation of the Mainland and Macau
Closer Economic Partnership Arrangement
Macau’s economy is dependent on tourism and (CEPA) and the Pan-Pearl River Delta Regional Co-
gaming. By share of GDP, gaming alone accounted operation Framework Agreement, the Framework
for 50.4% of Macau’s GDP in 2018 while tertiary for Development and Reform Planning for Pearl
industries, which included peripheral sectors such River Delta Region, the Framework Agreement on
as retail, accommodations and transportation, Co-operation between Guangdong and Macau,
amounted to 95.7% of GDP. In 2019, gross revenue and the Framework Agreement on Deepening
of the gaming industry (GGR) brought USD36.5b to Guangdong-Hong Kong-Macau Cooperation in the
Macau, more than three times that of Las Vegas. Development of the Bay Area will further enhance
the economic integration of the Pan PRD region.
In 2002, the Macau government ended its
monopoly system that has been in place since Recent Policies and Reforms
1962. Six casino operating concessions and
subconcessions were granted to Sociedade de Opinions on Several Policies and Measures
Turismo e Diversões de Macau, Wynn Resorts, Las to Support the Construction of the Guangdong-
Vegas Sands, Galaxy Entertainment Group, the Hong Kong-Macau Greater Bay Area in the Busi-
partnership of MGM Mirage and Pansy Ho (daughter ness Field"
of Stanley Ho), and the partnership of Melco and
Publishing and Broadcasting Limited (PBL). This In December 2019, the Ministry of Commerce
set off a rapid phase of growth in the gaming and issued the "Opinions on Several Policies and
tourism industry. In 2019, Macau was visited by Measures to Support the Construction of the
39.4m tourists, up from 11.5m in 2002. Guangdong-Hong Kong-Macau Greater Bay
Area in the Business Sector", which will pilot the
While its GGR has far exceeded Las Vegas, preferential measures of CEPA expansion in the
Macau is in the process of diversifying itself as Guangdong-Hong Kong-Macau Greater Bay Area
a tourism destination. The government seeks and promote the full realization of services in
to rebrand Macau as a regional hub in tourism, the Greater Bay Area free trade. The "Opinions"
exhibitions, and small- and medium-sized support the Guangdong Pilot Free Trade Zone
enterprise business services within the region. to take the lead in exploring the integration
144
The Economy In terms of economic structure, Macau has
been rated by the World Trade Organization (WTO)
Macau is located on the south- as one of the most open trade and investment
eastern coast of China, along regimes in the world. It is a free port and an
the west bank of the Pearl River estuary. It is 60km independent tariff zone, with a corporate profit
and 145km away from Hong Kong and Guangzhou tax rate of no more than 12%, and a far-reaching
respectively, and shares a border with Zhuhai to international marketing network with close ties to
the north. With a population of 653,100 in an area Portuguese-speaking countries. Macau’s role as a
of 30.8 sq km, it is the most densely populated trade and economic co-operation service platform
region in the world. Macau has had the status of between China and Portuguese-speaking countries
Special Administrative Region (SAR) in China since has received increasing recognition over the years.
it was returned from being a Portuguese colony in
1999. Implementation of the Mainland and Macau
Closer Economic Partnership Arrangement
Macau’s economy is dependent on tourism and (CEPA) and the Pan-Pearl River Delta Regional Co-
gaming. By share of GDP, gaming alone accounted operation Framework Agreement, the Framework
for 50.4% of Macau’s GDP in 2018 while tertiary for Development and Reform Planning for Pearl
industries, which included peripheral sectors such River Delta Region, the Framework Agreement on
as retail, accommodations and transportation, Co-operation between Guangdong and Macau,
amounted to 95.7% of GDP. In 2019, gross revenue and the Framework Agreement on Deepening
of the gaming industry (GGR) brought USD36.5b to Guangdong-Hong Kong-Macau Cooperation in the
Macau, more than three times that of Las Vegas. Development of the Bay Area will further enhance
the economic integration of the Pan PRD region.
In 2002, the Macau government ended its
monopoly system that has been in place since Recent Policies and Reforms
1962. Six casino operating concessions and
subconcessions were granted to Sociedade de Opinions on Several Policies and Measures
Turismo e Diversões de Macau, Wynn Resorts, Las to Support the Construction of the Guangdong-
Vegas Sands, Galaxy Entertainment Group, the Hong Kong-Macau Greater Bay Area in the Busi-
partnership of MGM Mirage and Pansy Ho (daughter ness Field"
of Stanley Ho), and the partnership of Melco and
Publishing and Broadcasting Limited (PBL). This In December 2019, the Ministry of Commerce
set off a rapid phase of growth in the gaming and issued the "Opinions on Several Policies and
tourism industry. In 2019, Macau was visited by Measures to Support the Construction of the
39.4m tourists, up from 11.5m in 2002. Guangdong-Hong Kong-Macau Greater Bay
Area in the Business Sector", which will pilot the
While its GGR has far exceeded Las Vegas, preferential measures of CEPA expansion in the
Macau is in the process of diversifying itself as Guangdong-Hong Kong-Macau Greater Bay Area
a tourism destination. The government seeks and promote the full realization of services in
to rebrand Macau as a regional hub in tourism, the Greater Bay Area free trade. The "Opinions"
exhibitions, and small- and medium-sized support the Guangdong Pilot Free Trade Zone
enterprise business services within the region. to take the lead in exploring the integration
144
