Intensifying regional gaming competition, economic risks: Macau Chief Executive
Macau’s Chief Executive Sam Hou Fai on Thursday morning, during the first plenary session of the 2025 Economic Development Commission, said challenges from regional competition in tourism and gaming cannot be ignored.
After two months in , Fai, is preparing to deliver his first policy address, the local media has reported. In his address, he outlined his vision for the city’s economic future, addressing key challenges facing Macau today. He acknowledged the growing challenges posed by regional competition, from regions like Singapore and the Philippines, particularly in the tourism and gaming sectors. This increased competition affects Macau’s ability to maintain its status as a top gaming destination and the Chief Executive noted that the risks brought by increased competition should not be underestimated.
“In the face of the surrounding environment, competition in the tourism and gaming industry in Macau is intensifying, and the risks and challenges brought to Macau should not be overlooked,” he said.
“The monotonous structure of visitor sources, the imbalance in the government’s tax revenue and the lack of innovation – these are major problems that still need to be improved and resolved.
“At the internal economic level, it is expected that the structural problem of ‘one industry dominates’ will continue for some time and I am afraid that it will be difficult to realize a change in the short term.”
In his speech, Sam stressed the importance of Macau’s continued push for economic diversification. He reiterated the “1+4” proposal introduced after the COVID-19 outbreak, which aims to create a more balanced economy by fostering industries beyond gaming. These sectors include tourism, conventions and exhibitions, traditional Chinese medicine, and high-tech industries.
Diversification not smooth
However, he acknowledged that the road to diversification has not been smooth. The city has yet to see the rapid economic transformation many had hoped for. He also noted that the shift to a more diversified economy faces both societal and market hurdles, including shifting consumption patterns and the change of consumption concepts. He also emphasised the need for support and leadership of the Central Government to ensure the long-term trend of Macau’s economy remains unchanged.
Macau has transformed from a gaming-centric economy into a city with a diversified economic structure, demonstrating resilience and stability, according to Chief Executive Ho Lat Seng. According to local media reports, Ho noted that integrating into national development strategies, such as the Belt and Road Initiative (BRI) and the Guangdong-Hong Kong-Macau Greater Bay Area, has played a pivotal role in China’s Special Administrative Region (SAR) development.
In his Lunar New Year message earlier this month, Fai said the city will be capable of navigating uncertainties in the future as long as it embraces flexibility and innovative thinking. This holds true especially for a fast-changing international landscape that the city is to witness.
