Macau
Macau is, along
with Hong Kong, one of the two special administrative
regions of the People's Republic of China. It lies on
the western side of the Pearl River Delta, bordering
Guangdong province to the north and facing the South
China Sea to the east and south.
The territory's economy is
heavily dependent on gambling and tourism but also
includes manufacturing.
Macau was a Portuguese
colony and both the first and last European colony in
China. Portuguese traders first settled in Macau in the
16th century and subsequently administered the region
until the handover on 20 December 1999. The
Sino-Portuguese Joint Declaration and the Basic Law of
Macau stipulate that Macau operates with a high degree
of autonomy until at least 2049, fifty years after the
transfer.
Under the policy of "one
country, two systems", the PRC's Central People's
Government is responsible for the territory's defense
and foreign affairs, while Macau maintains its own legal
system, police force, monetary system, customs policy,
and immigration policy. Macau participates in many
international organizations and events that do not
require members to possess national sovereignty.
According to The World Factbook, Macau has the
second highest life expectancy in the world.
Macau's economy is based
largely on tourism. Other chief economic activities in
Macau are export-geared textile and garment
manufacturing, banking and other financial services.
The clothing industry has provided about three quarters
of export earnings, and the gaming, tourism and
hospitality industry is estimated to contribute more
than 50% of Macau's GDP, and 70% of Macau government
revenue.
Macau is a founding member
of the WTO and has maintained sound economic and trade
relations with more than 120 countries and regions, with
European Union and Portuguese-speaking countries in
particular; Macau is also a member of the IMF. The World
Bank classifies Macau as a high income economy and the
GDP per capita of the region in 2006 was US$28,436.
After the Handover in 1999, there has been a rapid rise
in the number of mainland visitors due to China's easing
of travel restrictions. Together with the liberalization
of Macau's gaming industry in 2001 that induces
significant investment inflows, the average growth rate
of the economy between 2001 and 2006 was approximately
13.1% annually.
In a World Tourism
Organization report of international tourism for 2006,
Macau ranked 21st in the number of tourists and 24th in
terms of tourism receipts. From 9.1 million visitors in
2000, arrivals to Macau has grown to 18.7 million
visitors in 2005 and 22 million visitors in 2006, with
over 50% of the arrivals coming from mainland China and
another 30% from Hong Kong. Macau is expected to receive
between 24 and 25 million visitors in 2007.
Starting in 1962, the
gambling industry had been operated under a
government-issued monopoly license by Stanley Ho's
Sociedade de Turismo e Diversões de Macau. The monopoly
ended in 2002 and several casino owners from Las Vegas
attempted to enter the market. With the opening of the
Sands Macao, in 2004 and Wynn Macau in 2006, gambling
revenues from Macau's casinos were greatly prosperous.
In 2007, Venetian Macau, at the time the second (now
sixth) largest building in the world by floor space,
opened its doors to the public, followed by MGM Grand
Macau. Numerous other hotel casinos, including Galaxy
Cotai Megaresort, are also to be opened in the near
future.
In 2002, the Macau
government ended the monopoly system and six casino
operating concessions and subconcessions are granted to
Sociedade de Turismo e Diversões de Macau, Wynn Resorts,
Las Vegas Sands, Galaxy Entertainment Group, the
partnership of MGM Mirage and Pansy Ho (daughter of
Stanley Ho), and the partnership of Melco and Publishing
and Broadcasting Limited (PBL). Today, there are 16
casinos operated by the STDM, and they are still crucial
in the casino industry in Macau, but in 2004, the
opening of the Sands Macau ushered in the new era.
Gambling revenue has made Macau the world's top casino
market, surpassing Las Vegas.
Macau is an offshore
financial centre, a tax haven, and a free port with no
foreign exchange control regimes. The Monetary Authority
of Macau regulates offshore finance, while the Macau
Trade and Investment Promotion Institute provides
services for investment in Macau. In 2007, Moody's
Investors Service upgraded Macau's foreign and local
currency government issuer ratings to 'Aa3' from 'A1',
citing its government's solid finances as a large net
creditor.
The rating agency also
upgraded Macau's foreign currency bank deposit ceiling
to 'Aa3' from 'A1'.
As prescribed by the Macau
Basic Law, the government follows the principle of
keeping expenditure within the limits of revenues in
drawing up its budget, and strive to achieve a fiscal
balance, avoid deficits and keep the budget commensurate
with the growth rate of its gross domestic product. All
the financial revenues of the Macau Special
Administrative Region shall be managed and controlled by
the Region itself and shall not be handed over to the
Central People's Government. The Central People's
Government shall not levy any taxes in the Macau Special
Administrative Region.
