Is it a crisis for Macau to rely too much on the gambling industry?
On April 20, 2020, the Chief Executive of Macau Special Administrative Region, Ho Lat Seng issued his first policy addrCovid-19 pandemic, maintaining economic stability, and safeguarding the people’s livelihood of the Macao Special Administrative Region. At the same time, he also stated that Macau, as the world’s largest gambling center, relies too much on the gambling industry. As the Convid-19 pandemic continues to wreak havoc on various countries, it will pose a broader challenge to Macau. According to statistics, only 3 million tourists visited Macau in the first two months of 2020, down nearly 57% year-on-year.
Ho Lat Seng believes that most of the people should be aware of the development of the Macau region and the region is facing major challenges. At this time, structural and entrenched problems are emerging, and this will have a negative impact on the economy. Since the Covid-19 originated in Wuhan, China, it has spread to Macau at a fast speed. According to statistics, mainland China accounts for more than 90% of Macau’s tourist traffic. In order to combat the Covid-19 pandemic, the Macau government is expected to invest more than USD 6.2 billion budget on anti-epidemic works.
Since the outbreak, there have been 45 confirmed cases in Macau. In February, the Macau authorities ordered all casinos to be closed for up to two weeks to stop the spread of the virus. Even afterwards, the casino was reopened under certain conditions, but the number of tourists visiting the casino and the revenue of gambling industry were still very low. Macau is one of the largest gambling centers in the world, and the gambling companies contribute 80% of Macau’s tax revenue. Among the 600,000 citizens in Macau, about three-quarters of them are directly or indirectly employed in the gambling industry.
Over the years, the Macau government has continuously tried to diversify the region’s economy, but apparently has not received good results. Looking for other major sources of income to promote the economy will also be an important issue for Ho Lat Seng in the future.Ho Lat Seng’s background is considered special because he does not have much relevance to the gambling industry. As the only candidate for the fifth election of the Chief Executive of Macau Special Administrative Region in 2019, Ho Lat Seng officially took office on December 20, 2019. As the licenses of six major casino operators in Macau will expire in 2022, Ho Lat Seng and his team will play an important role in shaping the future of Macau.
