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Macao, Las Vegas of the East

Friday, 18 December 2020 - 11:00 am (CET/MEZ) Berlin | Author/Destination: Asia / Asien
Category/Kategorie: General, UNESCO World Heritage Reading Time:  13 minutes

🔊 Listen to this Post Macau, also spelled Macao and officially the Macao Special Administrative Region of the People’s Republic of China, is a city and special administrative region of the People’s Republic of China in the western Pearl River Delta by the South China Sea. With a population of about 650,000 and an area of 32.9 km² (12.7 sq mi), it is the most densely populated region in the world. Macau is a former colony of the Portuguese Empire, after Ming China leased the territory as a trading post in 1557. Portugal paid an annual rent and administered the territory under Chinese sovereignty until 1887, when it gained perpetual colonial rights in the Sino-Portuguese Treaty of Peking. The colony remained under Portuguese rule until 1999, when it was transferred to China. Macau is a special administrative region of China, which maintains separate governing and economic systems from those of mainland China under the principle of “one country, two systems“. Originally a sparsely populated collection of coastal islands, the territory has become a major resort city and a top destination for gambling tourism, with a gambling industry seven times larger than that of Las Vegas. The territory is highly urbanised and most development is built on reclaimed land; two-thirds of the total land area is reclaimed from the sea.

During the Second World War, the Empire of Japan did not occupy the colony and generally respected Portuguese neutrality in Macau. However, after Japanese troops captured a British cargo ship in Macau waters in 1943, Japan installed a group of government “advisors” as an alternative to military occupation. The territory largely avoided military action during the war except in 1945, when the United States ordered air raids on Macau after learning that the colonial government was preparing to sell aviation fuel to Japan. Portugal was later given over US$20 million in compensation for the damage in 1950. Refugees from mainland China swelled the population as they fled from the Chinese Civil War. Access to a large workforce enabled Macau’s economy to grow as the colony expanded its clothing and textiles manufacturing industry, developed tourism, and legalised casino gaming. However, at the height of the Cultural Revolution, residents dissatisfied with the colonial administration rioted in the 1966 12-3 incident, in which 8 people were killed and over 200 were injured. Portugal lost full control over the colony afterwards, and agreed to cooperate with the communist authorities in exchange for continued administration of Macau. Following the 1974 Carnation Revolution, Portugal formally relinquished Macau as an overseas province and acknowledged it as a “Chinese territory under Portuguese administration”. After China first concluded arrangements on Hong Kong’s future with the United Kingdom, it entered negotiations with Portugal over Macau in 1986. They were concluded with the signing of the 1987 Joint Declaration on the Question of Macau, in which Portugal agreed to transfer the colony in 1999 and China would guarantee Macau’s political and economic systems for 50 years after the transfer. In the waning years of colonial rule, Macau rapidly urbanised and constructed large-scale infrastructure projects, including Macau International Airport and a new container port. Macau was transferred to China on 20 December 1999, after 442 years of Portuguese rule. Following the transfer, Macau liberalised its casino industry (previously operating under a government-licensed monopoly) to allow foreign investors, starting a new period of economic development. The regional economy grew by a double-digit annual growth rate from 2002 to 2014, making Macau one of the richest economies in the world on a per capita basis. Political debates have centred on the region’s jurisdictional independence and the central government’s adherence of “one country, two systems” (with regard to Hong Kong, this fundamental right and principle was evidently abolished under the dictatorship of Xi Jinping). Issues such as national security legislation remain controversial.

The regional economy is heavily reliant on casino gaming. The vast majority of government funding (79.6 per cent of total tax revenue) comes from gaming. Gambling as a share of GDP peaked in 2013 at over 60 per cent, and continues to account for 49.1 per cent of total economic output. The vast majority of casino patrons are tourists from mainland China, making up 68 per cent of all visitors. Casino gaming is illegal in both the mainland and Hong Kong, giving Macau a legal monopoly on the industry in China. Revenue from Chinese high rollers has been falling and was forecast to fall as much as 10% more in 2019. Economic uncertainty may account for some of the drop, but alternate Asian gambling venues do as well. For example, Chinese visitors to the Philippines more than doubled between 2015 and 2018, since the City of Dreams casino opened in Manila. Casino gambling was legalised in 1962 and the gaming industry initially operated under a government-licensed monopoly granted to the Sociedade de Turismo e Diversões de Macau. This license was renegotiated and renewed several times before ending in 2002 after 40 years. The government then allowed open bidding for casino licenses to attract foreign investors. Along with an easing of travel restrictions on mainland Chinese visitors, this triggered a period of rapid economic growth; from 1999 to 2016, Macau’s gross domestic product multiplied by 7 and the unemployment rate dropped from 6.3 to 1.9 per cent. The Sands Macao, Wynn Macau, MGM Macau, and Venetian Macau were all opened during the first decade after liberalisation of casino concessions. Casinos employ about 24 per cent of the total workforce in the region. “Increased competition from casinos popping up across Asia to lure away Chinese high rollers and tourists” in Singapore, South Korea, Japan, Nepal, the Philippines, Australia, Vietnam and the Russian Far East led in 2019 to the lowest revenues in three years. Export-oriented manufacturing previously contributed to a much larger share of economic output, peaking at 36.9 per cent of GDP in 1985 and falling to less than 1 per cent in 2017. The bulk of these exports were cotton textiles and apparel, but also included toys and electronics. At the transfer of sovereignty in 1999, manufacturing, financial services, construction and real estate, and gaming were the four largest sectors of the economy. Macau’s shift to an economic model entirely dependent on gaming caused concern over its overexposure to a single sector, prompting the regional government to attempt re-diversifying its economy. The government traditionally had a non-interventionist role in the economy and taxes corporations at very low rates. Post-handover administrations have generally been more involved in enhancing social welfare to counter the cyclical nature of the gaming industry. Economic growth has been attributed in large part to the high number of mainlander visits to Macau, and the central government exercises a role in guiding casino business growth through its control of the flow of tourists. The Closer Economic Partnership Arrangement formalised a policy of free trade between Macau and mainland China, with each jurisdiction pledging to remove remaining obstacles to trade and cross-boundary investment. Due to a lack of available land for farming, agriculture is not significant in the economy. Food is exclusively imported to Macau and almost all foreign goods are transshipped through Hong Kong.

The mixing of the Chinese and Portuguese cultures and religious traditions for more than four centuries has left Macau with an inimitable collection of holidays, festivals and events. The biggest event of the year is the Macau Grand Prix in November, when the main streets in Macau Peninsula are converted to a racetrack bearing similarities with the Monaco Grand Prix. Other annual events include Macau Arts festival in March, the International Fireworks Display Contest in September, the International Music festival in October and/or November, and the Macau International Marathon in December. The Lunar Chinese New Year is the most important traditional festival and celebration normally takes place in late January or early February. The Pou Tai Un Temple in Taipa is the place for the Feast of Tou Tei, the Earth god, in February. The Procession of the Passion of Our Lord is a well-known Roman Catholic rite and journey, which travels from Saint Austin’s Church to the cathedral, also taking place in February. A-Ma Temple, which honours the Goddess Matsu, is in full swing in April with many worshippers celebrating the A-Ma festival. In May it is common to see dancing dragons at the Feast of the Drunken Dragon and twinkling-clean Buddhas at the Feast of the Bathing of Lord Buddha. In Coloane Village, the Taoist god Tam Kong is also honoured on the same day. Dragon Boat Festival is brought into play on Nam Van Lake in June and Hungry Ghosts’ festival, in late August and/or early September every year. All events and festivities of the year end with Winter Solstice in December. Macau preserves many historical properties in the urban area. The Historic Centre of Macau, which includes some twenty-five historic locations, was officially listed as a World Heritage Site by UNESCO on 15 July 2005 during the 29th session of the World Heritage Committee, held in Durban, South Africa. However, the Macao government is criticized for ignoring the conservation of heritage in urban planning. In 2007, local residents of Macao wrote a letter to UNESCO complaining about construction projects around world heritage Guia Lighthouse (Focal height 108 meters), including the headquarter of the Liaison Office (91 meters). UNESCO then issued a warning to the Macau government, which led former Chief Executive Edmund Ho to sign a notice regulating height restrictions on buildings around the site. In 2015, the New Macau Association submitted a report to UNESCO claiming that the government had failed to protect Macao’s cultural heritage against threats by urban development projects. One of the main examples of the report is that the headquarter of the Liaison Office of the Central People’s Government, which is located on the Guia foothill and obstructs the view of the Guia Fortress (one of the world heritages symbols of Macao). One year later, Roni Amelan, a spokesman from UNESCO Press service, said that the UNESCO has asked China for information and is still waiting for a reply. In 2016, the Macau government approved an 81-meter construction limit for the residential project, which reportedly goes against the city’s regulations on the height of buildings around world heritage site Guia Lighthouse.

Food in Macau is mainly based on both Cantonese and Portuguese cuisine, drawing influences from Indian and Malay dishes as well, reflecting a unique cultural and culinary blend after centuries of colonial rule. Portuguese recipes were adapted to use local ingredients, such as fresh seafood, turmeric, coconut milk, and adzuki beans. These adaptations produced Macanese variations of traditional Portuguese dishes including caldo verde, minchee, and cozido à portuguesa. While many restaurants claim to serve traditional Portuguese or Macanese dishes, most serve a mix of Cantonese-Portuguese fusion cuisine. Galinha à portuguesa is an example of a Chinese dish that draws from Macanese influences, but is not part of Macanese cuisine. Cha chaan teng, a type of fast casual diner originating in Hong Kong that serves that region’s interpretation of Western food, are also prevalent in Macau. Pastel de nata, pork chop buns, and almond biscuits are popular street food items.

Read more on Macao, Macao Tourism, Macanese cuisine, Wikivoyage Macao and Wikipedia Macao (Smart Traveler App by U.S. Department of State - Weather report by weather.com - Global Passport Power Rank - Travel Risk Map - Democracy Index - GDP according to IMF, UN, and World Bank - Global Competitiveness Report - Corruption Perceptions Index - Press Freedom Index - World Justice Project - Rule of Law Index - UN Human Development Index - Global Peace Index - Travel & Tourism Competitiveness Index). Photos by Wikimedia Commons. If you have a suggestion, critique, review or comment to this blog entry, we are looking forward to receive your e-mail at comment@wingsch.net. Please name the headline of the blog post to which your e-mail refers to in the subject line.

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