As Macau gears up for its next leadership election, a major candidate has voiced concerns over the overwhelming influence of the casino industry on the city’s economy, signaling potential changes in future economic policies.
Sam Hou Fai, the former president of Macau’s Court of Final Appeal and a key contender for the chief executive role, warned that the unchecked growth of the gaming sector has created significant challenges for the region’s sustainable development.
Speaking at a press briefing on Wednesday, Sam highlighted the detrimental effects of the casino-driven economy: “For a period of time, the tourism and gaming industry developed in a disorderly manner and expanded wildly.”
He emphasized that the reliance on a single dominant industry has hindered Macau’s long-term progress and called for economic diversification to address these issues.
Sam also pointed out the social consequences of the casino boom, including the strain on local resources and limited career opportunities for young people. His comments come as Beijing intensifies its efforts to curb money laundering and capital outflows associated with Macau’s gambling sector.
In recent years, Macau has cracked down on junket operators—key players in bringing high-stakes gamblers to the region—resulting in a large reduction in VIP gambling, which once accounted for half of the city’s casino revenue.
Following Sam’s remarks, a Bloomberg Intelligence index tracking Macau’s casino operators saw a 2% drop on Wednesday, marking the steepest decline in over two weeks. Shares of MGM China Holdings and Sands China also fell by 2.5% and 2.8%, respectively.
Macau’s current chief executive, Ho Iat Seng, who has decided not to seek re-election due to health reasons, was the sole candidate in the 2019 election. With the October 13 election approaching, Sam remains the only candidate to officially declare his candidacy.
Original article: https://www.yogonet.com/international/noticias/2024/08/28/76872-macau-leadership-candidate-warns-of-casino-industry-overreliance
