Casinos poised for growth amid market challenges

Sam Hou Fai pledges to regulate gaming, diversify the economy

- Monday, September 30, 2024 - 12 hours ago No Comments 1,289 Views
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Macau’s sole candidate for Chief Executive, Sam Hou Fai, unveiled a comprehensive policy agenda Saturday morning aimed at regulating the gaming sector while fostering development in other industries.

Speaking at his policy platform presentation, he emphasized the importance of “strict enforcement” of the law to ensure orderly growth in the city.

Sam, the former head of the Court of Final Appeal, stated that the implementation of a new gaming law will be crucial for maintaining a healthy and regulated industry. He expressed a commitment to combat illegal activities and prioritize the development of non-gaming elements in Macau’s economy.

“We will strictly implement a new gaming law to regulate the industry and ensure its healthy, orderly development,” said Sam, poised to be the next city leader.

In addition to regulating gaming, Sam aims to broaden the city’s appeal to international tourists. He highlighted the potential of attracting middle-class visitors from Southeast Asia and South America, describing them as a market of “one billion” potential spenders who typically enjoy extended stays and contribute to cultural exchange.

Currently, visitors from outside mainland China, Hong Kong, and Taiwan make up only 7% of the 16.7 million tourists who visited Macau in the first half of this year.

To enhance this, Sam proposed that Macau’s gaming operators—who have committed around USD 13 billion to non-gaming investments—should establish tourism promotion offices in key markets, including Brazil and other Southeast Asian countries.

“These gaming firms, including global players like MGM, Wynn, and Sands China, have extensive networks. We need to leverage these connections to encourage them to invest in tourism promotion alongside the Macau government,” said Sam.

During his inaugural press briefing last month, he stated that the “wild” expansion of casino resorts had depleted Macau’s resources. Sam said that just relying on the gaming industry is not enough. “Otherwise, how could we handle it if big disasters arise?” he asked.

Sam, 62, is widely expected to secure the leadership in next month’s vote, during which a 400-member committee—mostly dominated by establishment figures—will pick the leader.

In late August, Sam articulated his vision for a balanced economic future, stating that “having only the gaming industry dominate” is detrimental to Macau’s development. He highlighted the necessity of integrating into the national development blueprint, asserting that the Special Administrative Region (SAR) must capitalize on its unique advantages as the “One Centre, One Platform, and One Base.” He underscored that economic diversification is a critical issue that “cannot be ignored,” adding that “there is no turning back” and emphasizing the importance of developing in a diversified manner.

Sam reiterated that his vision seeks not only to regulate the gaming industry but also to position Macau as a vibrant hub for international tourism and trade, particularly in promoting exports from the Greater Bay Area to Portuguese-speaking nations.

Multidimensional economic system

Laying out an ambitious agenda to transform the region’s economic landscape, with a central focus on cultivating a “multidimensional economic system” – Sam believes the system is a strategic move that will safeguard both personal interests and long-term stability.

With the slogan “Entrepreneurship and Solidarity, Persistence and Innovation,” Sam emphasized the importance of taking active measures to confront national development strategies.

He stressed the need to implement a comprehensive economic development plan for the region.

His proposed plan aims to boost support for small and medium-sized (SMEs) businesses, seen as an important part of the local economy.

The plan would also enhance the area’s tourism industry, another sector considered vital for revitalizing economic growth.

These two areas are priority pillars in Sam’s strategy to strengthen the regional economic performance.

Recognizing the catalytic role of SMEs, Sam vowed to “support SMEs to innovate and develop.”

By nurturing these businesses, he aims to create new opportunities and foster a more ““vibrant, diversified market.”

Sam’s vision for Macau’s tourism industry is equally comprehensive.

He plans to provide a “rich supply of tourism products” and improve “the quality of tourism services” to attract a larger influx of international visitors.

This, he believes, will not only boost the region’s economic prowess but also strengthen its global presence.

Alongside these efforts, Sam intends to promote “1+4 industrial multidimensional development,” focusing on sectors such as Chinese pharmaceuticals, finance and high-tech industries.

This targeted approach seeks to cultivate a well-rounded economic foundation, reducing Macau’s historical reliance on the gaming and hospitality sectors.

Governance and collaboration

Sam described his “transparent public service system” to be achieved through the importance of legislative cooperation and modernizing Macau’s legal system.

His aim is to “promote the modernization of the legal system and establish a mechanism for cooperation between the government and the Legislative Assembly.”

Sam also pledged to “strengthen the authority of civil servants” as part of his plan to improve governance efficiency.

This includes clarifying the “rights and obligations of leaders” and enhancing the qualifications of public sector employees.

Sam said developing strong dispute-resolution processes would be important for enhancing future governance.

He expressed a desire to bolster the role of civil servants, stating that a key priority is to “improve the qualifications of civil servants to enhance governance efficiency.”

Quality of life improvements

The candidate underscored the necessity of “strengthening and improving people’s lives,” describing this as a foundational component of his government’s policy.

Proposed initiatives include optimizing social security systems, enhancing employment services, and improving healthcare access through collaboration with mainland institutions.

Sam plans to “build a strong social security system” and optimize the “system of social assistance,” ensuring residents have access to necessary support.

Additionally, he aims to perfect the “system of training and employment services for professional skills” to create better job opportunities for locals.

Sam also envisions deepening cooperation with high-level medical institutions in mainland China and enhancing the medical insurance system to improve public health services.

“Strengthening and improving people’s lives,” he said, is essential for fostering a harmonious and prosperous Macau.

Community and environmental well-being

For the candidate, promoting community harmony and environmental protection are also key priorities.

Regarding community well-being, Sam acknowledged the need to optimize the “ecological environment” and “improve the ability of comprehensive environmental governance.”

When addressing the diverse territory’s racial harmony, the candidate vowed to “promote racial harmony” among all cultural groups.

He specifically mentioned safeguarding the rights of “Portuguese descendants in Macau,” acknowledging the region’s colonial history.

Turning to environmental protection, a critical issue as the SAR continues to develop, the candidate outlined plans to “strengthen the protection of the ecological environment.”

He stated improving resources for urban environmental governance will be crucial.