Chinese Government Presses Macau to Expand
Thursday, December 24th, 2009Macau has become a gambling Mecca in the world today. Though it’s a small island whose main industry is gambling, other chief economic activities are export-geared textiles and garment manufacturing, banking and other financial services. Much of the industry is based on the Chinese mainland for sustenance. Chinese President Hu Jintao send a message to Macau over the weekend that he wants gambling reform, and diversity. Jintao is afraid that too much of the peninsula’s economy is based on gambling and it could pose problems for the area in the future. He is citing Las Vegas and its decline due to reliance on gambling as its main industry as a detrimental move. The President would like to see other areas of focus come into the area and fund major portions of the government – not just gambling.
Using Las Vegas as a case study, Jintao is noting how Macau is quickly becoming reliant on the casino gambling industry to sustain itself. He noted how the economic meltdown crippled the industry of Las Vegas, and in turn, has put Nevada in a serious hole when it comes to their budget. Although signs are pointing to the Macau gambling industry not complying with Jintao’s ideas, he could hamper future gambling. Residents of mainland China need visas to visit Macau. So far in past years China has had the authority to place restrictions on the visas handed out to citizens and was able to limit the number of times residents visited the peninsula of Macau. Revenue dropped notably when the Chinese government decided to limit visa travel.
Fortunately the Chinese government eased their restrictions that brought Macau’s revenues down and they moved upward again. If Macau, however does not make the necessary changes, the government may make moves to impose the strict visa laws again. Among the issues that Jintao wants addressed is higher living standards and an improved education system. Jintao wants to ensure that the children of Macau do not grow up knowing only the gambling industry. Part of his focus is to bring about a well-rounded community of residents who are fully aware of all that the small island has to offer and not just gambling.

