Nothing has been going good for China ever since the protests erupted in Hong Kong. The trade war continues to negatively impact the currency and the regional industries are not chipping in revenues as expected.
The prolonged pro-democracy protests in Hong Kong and the trade war continues to take a toll on Macau’s casino gambling industry. As President XI Jinping is about to visit the gambling Mecca, reports suggest that he would be announcing a series of measures and new policies aimed at transforming the Chinese-controlled territory into a financial hotspot.
Reuter reports that President Xi Jinping could announce creating a yuan-based stock exchange along with other significant financial infrastructure.
Macau’s casino gambling industry is both its economic strength and weakness. The city’s economy depends almost entirely on its casinos – over 80 percent of the tax revenue comes from the casino gambling industry. However, this has its own problem and the biggest is that Macau’s dependency on casinos can be troubling.
As the revenue from casinos shrinks, Macau is now feeling a need for diversification. Its reliance on Tourism and Casinos leaves it vulnerable to a crisis-like situation – arguably which it is facing right now.
China’s Policy Change For Macau
Since the trade war between the two economic giants started showing signs of negatively impacting Macau’s casino gambling industry, the government started working towards diversification.
It started with the idea of developing Macau as a family-friendly destination asking casino operators to invest huge sums in non-gaming infrastructure.
It is expected that with President Jinping’s visit there will be new policies that would allow Macau to explore and develop itself as more than a global gambling destination.
According to Reuters, President Xi Jinping has been impressed by Macau’s conformity and is eager to find a way to implement the “Macau model” in Hong Kong.
It is also reported that China’s state-owned banks are already on the task. Reuters quotes sources saying: “Xi Jinping has made very clear that he wants a diversified Macau economy. The future focus will be on tourism and finance, to make it a center to host international meetings like Singapore.”