Ho Iat Seng: Macau targets 60% non-gaming value by 2028

Chief Executive Ho Iat Seng highlighted a significant shift in the region’s economic landscape, noting that while gambling remains important, it now accounts for only 37.2% of Macau’s gross domestic product (GDP).

Macau’s outgoing Chief Executive is preparing to hand over leadership of the city to Sam Hou Fai on Dec. 20.

In recent interviews with mainland media, Ho emphasized the need for economic diversification, stating, “Macau’s goal is to increase the share of non-gaming value-added to about 60% by 2028.” This transition is particularly crucial in light of challenges posed by the Covid-19 pandemic. “In the face of uncertainties, our economy found it difficult to withstand risks,” he said.

Since taking office in December 2019, Ho’s administration has focused on reducing reliance on the gaming industry to build a more resilient and capable economy.

The gaming sector has shown signs of recovery, rebounding to approximately 75% of its pre-pandemic levels in 2023. However, Ho warned that the city’s heavy dependence on casinos is no longer sustainable. Following revisions to gaming laws in 2022, Macau’s casino operators committed to investing MOP118.8 billion (about USD $14.8 billion) over the next decade, with plans for non-gaming projects significantly outpacing those for gaming.

In November 2023, a formal economic diversification plan was released, outlining objectives for 2024 to 2028. This plan aims for the non-gaming sector to contribute about 60% of GDP by 2028 while allowing the gaming industry to stabilize post-pandemic. Key areas of focus include tourism and leisure, traditional Chinese medicine and healthcare, modern finance, high technology, and conventions and exhibitions.

Ho also noted efforts to promote performing arts as part of this strategy. “We are committed to showcasing the city’s unique charm,” he said, referencing Macau’s rich cultural blend of Chinese and Western influences.

The tourism sector has also adapted to changing traveler preferences. In 2023, over 28 million tourists visited Macau, a significant increase compared to previous years. Ho attributed this growth to the government’s ability to anticipate shifts in travel patterns post-pandemic and adapt accordingly. He pointed out that while the number of tour groups has sharply decreased from over 500 daily arrivals in 2018 to around 30, independent travelers are increasingly drawn to Macau’s cultural offerings.

Despite these advancements, Macau remains heavily reliant on casino taxes, which constituted approximately 80.6% of government revenue from January to November this year.

Ho expressed confidence to Chinese media that with continued support from the central government and strategic investments in infrastructure—such as the new Macau Medical Center—Macau can navigate its post-pandemic recovery while fostering sustainable economic growth. In addition, he noted that the ‘Onecountry, two systems’ policy has granted Macau a degree of autonomy that has been crucial during these transformative years.

Nadia Shaw