Macau's Future Leader Meets with Casino Operators to Discuss City's Future
Sam Hou Fai, the sole candidate to become Macau's next chief executive, held a meeting with the city's six casino concessionaires on September 12, urging them to adopt a more sustainable and balanced approach to development.
Sam Hou Fai, the sole candidate to become Macau's next chief executive, in a meeting with government officials. (Source: The Macao News)
LISTEN TO THIS ARTICLE:Sam's comments on Macau's gaming industry are consistent with the stance he took when he announced his candidacy for chief executive in August. At that time, he criticized the negative impact that gambling has had on the city, particularly its outsized influence on societal resources and its limiting effect on the career prospects of Macau's younger population.
As Macau continues to grapple with its reliance on the gaming industry, Sam emphasized the need for the sector to "maintain healthy, orderly, sustainable development," reflecting the region's ongoing efforts to diversify its economy beyond gaming. Sam argued that the gaming sector's dominance "squeezes the resources of our society… [and] affects our young people's choice of employment and career." This is a sentiment that echoes concerns in China's government about over-reliance on the gaming industry.
Related: Leading Candidate to Take Over Macau Government Throws Shade on Gambling IndustryDespite his critique, Sam acknowledged the essential role gambling plays in Macau's economy during his meeting with the concessionaires. He recognized that the industry has been a significant contributor to the region's economic development, but he emphasized the need for industry leaders to collaborate on a more resilient and diversified economic model. The call for balance reflects a broader goal of reducing Macau's dependence on gaming, which continues to account for a substantial portion of government revenue.
Among those present at the meeting were several key figures in the gaming industry, including MGM China Chair Pansy Ho and President and Executive Director Kenneth Feng. Also attending were Sands China Executive Vice-Chairman Wilfred Wong and President and CEO Grant Chum. Other notable attendees included Melco Resorts & Entertainment Chair and CEO Lawrence Ho, Galaxy Entertainment Group Deputy Chairman Francis Lui, Wynn Macau President And Executive Director Linda Chen and SJM Resorts Managing Director Daisy Ho Chiu Fung.
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Political analysts such as Ieong Meng-u, a professor of political science at the University of Macau, suggest that Sam's criticism of the gaming industry mirrors Beijing's perspective on the matter. Ieong noted that while Sam has voiced concerns about the sector's disorderly growth, he is unlikely to bring about significant changes in the near term. "[Sam] described the gaming sector as developing 'in a disorderly way' because that's how Beijing perceives it," Ieong told the South China Morning Post, pointing out that maintaining stability in the industry is a priority for the region.
Vitaly Umansky, an expert in Asian gaming and analyst with Seaport Research Partners, echoed this view, adding that Sam is likely to recognize the crucial role the gaming and hospitality industries plays in Macau's economic well-being. While diversifying the economy is an important goal, the gaming sector remains a key pillar of Macau's financial health. From January to July of this year, 84% of Macau's total government revenue came from gaming taxes, underscoring the sector's dominance in the region's economic landscape.
Current Chief Executive Ho, who will be stepping down at the end of his term, has already laid the groundwork for Macau's economic diversification with his '1+4' strategy. Announced last August, this plan includes the development of four additional industries alongside gambling: financial services, medicine, special events and technology.
The objective is to reduce gaming's share of the city's GDP to 40%, with the remaining 60% generated by these non-gaming sectors. The six major casino operators have promised to inject over MOP108.7 billion (US$13.5 billion) in non-gaming ventures over the next decade as part of their license agreements.
Sam, the former president of Macau's Court of Final Appeal, has already secured almost all of the 400 elector endorsements leading up to the election on October 13. Although he has expressed a desire to guide Macau toward a more diversified economy, his leadership will likely aim to maintain a stable and mutually beneficial relationship with the city's vital gaming industry, at least in the short term.
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