Near the iconic «Grand Lisbon»symbol of the casinos that have enriched Macau, Suzanne Leong, owner of a clothing store in difficulty, is worried like many residents about the economic ultra-dependence of the Chinese territory on the gaming industry.
After the pandemic, visitors returned in large numbers to the former Portuguese colony, which once again occupies first place in the world in terms of gambling turnover, ahead of Las Vegas.
Macau is celebrating 25 years of its handover to China this week. Two decades which coincide with the insolent prosperity of casinos, a sector which has made the Macanese the richest Chinese in terms of per capita income.
But for many residents like Suzanne Leong, the post-Covid recovery is of little benefit to small businesses and highlights the pressing need for a more diversified economy. Although the central government in Beijing has long encouraged this trend, the results remain mixed.
“It is not easy to make Macau a place less dependent on casinos. But if we don’t try now, we will have even fewer options in the future.”Ms. Leong, 51, told AFP.
Suzanne Leong in her clothing store in Macau, December 13, 2024 / Eduardo Leal / AFP
“And because I really love Macau, all this scares me”she said.
Her store attracted many customers a decade ago, when Macanese women, enriched by their jobs in the gaming sector, were fond of the latest trends.
But habits have changed.
Shoppers are cutting back on their spending and tourists from mainland China are content to sit on a public bench in front of her store to eat their lunch on the go, without going inside.
Result: its current profits represent barely 10% of those at the time.
“Macau looks prosperous. But many restaurants and businesses are suffering” et “no one really knows what to do”deplores Ms. Leong.
“Money comes in too easily”
The golden age of casinos in Macau, the only place in China where they are authorized, began in earnest in 2002, when the authorities ended the monopoly of the now deceased tycoon Stanley Ho and authorized the arrival of foreign operators.
Pedestrians pass under flags of Macau and China on Leal Senado Square in Macau, December 13, 2024 / Eduardo Leal / AFP
Less than five years later, the semi-autonomous Chinese territory surpassed Las Vegas in terms of gaming sector turnover.
Proof today of Macau’s dependence on casinos: they generate 81% of public money.
“The central government has been hoping for at least ten years for Macau’s economy to diversify. But nothing has changed”says Ieong Meng-u, political scientist at the University of Macau.
“With the gaming sector, money comes in too easily”he notes.
However, in 2022, the six Macanese casino operators were only able to renew their licenses after committing to invest in non-gaming activities.
View of the Grand Lisboa casino in Macao, on December 13, 2024 / Eduardo Leal / AFP
They must devote the equivalent of 14.2 billion euros to the construction of amusement parks, convention centers and performance halls.
Chinese President Xi Jinping, who will be in Macau this week to attend the celebrations, will likely want “see with your own eyes what these non-gaming investments have produced”estimates Ben Lee, founder of the consulting company IGamiX.
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Municipal authorities have also designated six historic areas to be revitalized, one for each operator.
More “casinos are rational economic entities. They will only do the minimum they think is necessary.”according to Mr. Lee.
Visitors admire the panorama from the Fortaleza do Monte fortress in Macau, December 13, 2024 / Eduardo Leal / AFP
Operators also regularly announce concerts, conferences and sporting events. The North American basketball league NBA has just concluded an agreement to organize pre-season matches at Sands’ Venetian Arena from 2025.
In addition to tourism, local authorities, including the next Macanese leader, Sam Hou-fai, hope to make certain sectors the new economic engines of the territory.
It will nevertheless be “very difficult for a place like Macau to have a competitive advantage” in the areas offered so far (financial services, technology and even Chinese medicine), judges Vitaly Umansky, analyst at Seaport Research Partners.
Even after a year “extremely difficult”However, Ms. Leong does not intend to close her shop.
“We must understand the current situation and adapt”she declares.
“I will not leave Macau. I want the city to become better. »