Macau chief executive Ho Iat Seng is backing four non-gaming development projects aimed at boosting and diversifying the local economy.
Macau Chief Executive Sam Hou Fai has outlined four development projects outside of the gaming sector, aimed at strengthening the city’s economic resilience.
He noted that in 2024, around 80% of Macau’s total tax revenue came from the gaming industry—a figure he described as unsustainable given the rising competition in global gaming markets. Sam emphasized the urgent need to diversify Macau’s economy beyond its heavy reliance on casinos.
According to Macau Business, Sam’s plan includes an investment of MOP38.2 billion (£3.5 billion/€4.167 billion/$4.75 billion) in the Greater Bay Area (GBA), which comprises the special administrative regions of Macau and Hong Kong, along with nine cities in Guangdong Province.
As part of their renewed concessions in 2023, gaming operators are required to contribute to some of these developments. The projects are expected to be completed within the next eight to ten years.
Advancing education, culture, aviation, tech
The development projects, announced by Chief Executive Sam Hou Fai during a press briefing on 27 April, include major investments aimed at diversifying Macau’s economy:
Macau-Hengqin International Education University Town: A MOP20 billion investment will go toward building an international education hub.
Integrated Cultural and Tourism Zone: With a budget of MOP12 billion, this zone will feature a National Museum, an International Arts Centre, and an International Exhibition Centre, showcasing Macau’s unique blend of Portuguese and Chinese cultures.
Macau International Airport Expansion: A MOP6 billion project to increase annual passenger capacity from 10 million to 15 million by 2030.
Macau Technology R&D Industrial Park: This initiative aims to attract international research and development firms, helping position Macau as a hub for innovation.
Effects of US tariffs “indirect” but meaningful
Sam noted that while recent US-China trade tensions may not directly impact Macau, the ripple effects—such as tariff increases affecting other countries—could hurt tourism, a key driver of the local economy. A drop in visitor numbers would, in turn, hit gaming revenue, which remains the cornerstone of Macau’s fiscal health.
Because of this, Sam stressed the importance of cultivating new industries within the city and strengthening cooperation with other Greater Bay Area (GBA) cities.
Economic diversification has been a consistent priority for Sam, as it was for his predecessor, former Chief Executive Ho Iat-Seng, who stepped down in December.
“Macau cannot remain unaffected as competition in tourism and gaming from neighboring cities grows stronger,” Sam warned in February. “We must not ignore these emerging risks and challenges.”
