Macau's casino boom brings wealth but at a cost, 25 years after China took power

MACAU When Portugal returned its colony of Macau to China In 1999, cafe owner Daniel Chao was a first grader living in a different world.

Since then, his sleepy hometown has transformed into a lively games center lined with glittering casinos. Its once-quiet streets are now crowded with tourist buses. But the growing wealth of the city nicknamed the Las Vegas of the East has not brought sustainable development qualities such as economic diversity and strong civic participation.

What was once a relaxed and free place in my childhood has become a crowded and highly commercialized place, Chao said.

Macau will mark the 25th anniversary of its return to Chinese rule on Friday. Chinese President Xi Jinping visit the city for three days and the city is adorned with celebratory banners and other decorations. A fireworks display is planned for next week.

Since 1999, the city of 687,000 inhabitants has gone from a gaming enclave run by a monopoly in the world's largest gaming center, packed with mainland Chinese tourists. Its GDP per person more than quadrupled to $68,000, about the same as Denmark and Australia and surpassing Hong Kong's, which is around $50,000.

China rules Macau under a “one country, two systems” system similar to its governance of Hong Kong, a former British colony. Macau is the only Chinese city where casino gambling is legal and it has resorts run by subsidiaries of US gaming giants MGM Resorts, Las Vegas Sands and Wynn Resorts.

Since Macau opened its casino market following the handover to Beijing, its economy has grown from $6.5 billion in 1999 to $46 billion in 2023, despite economic recession during the COVID-19 pandemic and a crackdown on junkets which facilitated the visits of big players from elsewhere.

Economic growth has a cost.

The mother of Chaos worked in a casino which brought her better pay and a bigger apartment, but also stress and irregular hours. He remembers doing his homework at 5 a.m., after his night shift. When he worked as a teacher, his students often stayed up late or had to rely on paid tutors because their parents also worked at the casino.

The city's tourism boom has brought years of easy money that have provided little incentive for businesses to strive to improve their products or services and develop the resilience needed to weather the difficult times of the pandemic and competition from mainland Chinese products, Chao and other residents said. .

Chao considered leaving town, but chose to stay.

Leaving must come at a high price, he said, adding that it appears Macau is not yet truly unlivable.

The ruling Communist Party's agenda for Macau now dominates, with municipal leaders often referring to national plans. This is a marked change from the past, when the city rarely felt direct impact from Beijing, said Ieong Meng U, a professor at the University of Macau's department of government and public administration.

He expects Macau to increasingly integrate with neighboring Guangdong province over the next decade, following plans to promote tourism, Chinese medicine, finance, technology and exhibitions.

China has designated a special zone on Hengqin Island in neighboring Zhuhai, jointly managed by Guangdong and Macau, which is expected to accommodate around 120,000 Macau residents by 2035.

Closer economic ties have coincided with more intrusive political controls, particularly after huge anti-government protests in Hong Kong in 2019 that led Beijing to crack down on virtually all public dissent.

A vigil commemorating China's bloody 1989 military crackdown on Pro-democracy protests in Tiananmen Square was banned. Pro-democracy figures have not been allowed to run in Macau's 2021 parliamentary elections. Last year, the city tightened its national security law. In November, the Macau Journalists Association expressed concerns over signs of declining press freedom, saying some local media outlets had been asked to retract their stories due to political pressure.

Activist Jason Chao, no relation to Daniel Chao, decided to leave.

After years of working to promote greater democracy, he became frustrated by the authorities' lack of willingness to change and by the tendency of Macau residents to rely on solving problems by seeking help or personal connections from Beijing rather than participating in civic life, a habit he says stems in part from the city's colonial heritage under Portuguese rule.

I exhausted the tactics I had learned at that point,” Chao said.

In 2017, Chao went to study abroad. He is now director of a civil society organization serving Hong Kong immigrants in Britain.

Some older residents believe life has improved over the past quarter century.

Ka Man Chun, a retiree, likes the annual cash donations, funded by gaming tax reserves, that the government has offered residents since 2008. This year, each permanent resident received $1,240,

Ka says he feels safe since he avoids politics.

25 years have passed, there is nothing serious, he said.

Macau's public safety, economy and welfare have improved significantly since the colonial era, said Anna Ng, a flower shop owner in her 60s.

Although critics say Macau has failed to diversify your economyNg sees signs of progress in the city's growing exhibition sector and says he has found new opportunities in cultural and creative activities.

Enid Ieong said she was bored with the city's limited career and leisure options and wanted to join her boyfriend in Hong Kong. She dreams of living in Sai Kung, Hong Kong, a region famous for the beauty of its landscapes and beaches.

Ieong scoffed at the annual handout of money as compensation for what she calls the psychological damage of living in a gaming center.

I feel like I was born in a big mansion, but I'm only responsible for sweeping the floor, she said.