Destinations > Asia > Macau

Macau Economy

Flag of Macau
 

Macau's economy is now based primarily on tourism, specifically casino gambling. The global financial crisis, combined with restrictions imposed by the Peopleís Republic of China that limited Chinese visitors to Macau, caused Macau to experience its first economic contraction since the gaming sector was opened to foreign investment in 2002. However, accelerating Chinese economic growth and relaxation of Chinese exit visa restrictions boosted Macauís growth back into positive territory in the third quarter of 2009. Textile and garment manufacturing, once mainstays of the Macau economy, have virtually vanished and efforts to diversify the economy have had limited success. Through the first 10 months of 2009, Macauís exports dropped by more than 50%, with exports to the U.S. falling by 80%. Macau is heavily dependent on imports of all kinds, and although imports have dropped by 20%, the trade deficit through the first 10 months of 2009 increased to U.S. $2.9 billion. Gaming alone contributed almost 70% of GDP through the first three quarters of 2009. The opening of the formerly monopolized gambling sector in 2002 has led to significant new investment in casinos, hotels, and related facilities. In the first 10 months of 2009, tourist arrivals fell by 7.1% from the same period in 2008, though visitors appear to be coming to Macau in increasing numbers once again. Mainland Chinese tourists accounted for just over 50% of all tourist arrivals to Macau, with Hong Kong tourists accounting for 32% and Taiwan visitors about 6%.

Macau depends on mainland China for most of its food, fresh water, and energy imports. The European Union and Hong Kong are the main suppliers of raw materials and capital goods.

In the last few years virtually all of Macau's manufacturing operations (mainly textiles and garments) have moved across the border to mainland China. Mainland competition, along with the 2005 end of Multi-Fiber Arrangement (MFA) quotas, which had provided a near guarantee of export markets, have meant the end of Macau's low-end mass production of textiles. While still accounting for almost 30% of Macauís total exports, textile and clothing exports amounted to less than U.S. $1 million in the first 10 months of 2009. For future growth, Macau is betting heavily on becoming a regional center for gaming, tourism, conventions, and corporate incentive travel; foreign and local investors have massively expanded the casino, hotel, and restaurant sectors. U.S. investment has played a leading role in the development of Macauís gaming and entertainment sector. According to Macau Government statistics, U.S. direct investment in Macau totaled U.S. $2.2 billion at the end of 2008, making the U.S. Macauís second-largest source of foreign direct investment after Hong Kong (U.S. $4.0 billion). Direct investment in Macau from mainland China (U.S. $1.2 billion) has been concentrated in the financial sector.


Information by U.S. Department of State


Macau Gallery

Ruins of St. Paul's (Ruinas de S. Paulo), Macau Picturesque Historic Center of Macau Holy House of Mercy in the Historic Center of Macau Historic Center of Macau 

There are 15 pictures in our Macau gallery. Click the thumbnail to enter.




Wired Tourist Articles

Quick Guide To Thailand

Thailand is possibly the most-visited country in south-east Asia. The irresistible combination of fine beaches, ancient monuments and civilisations and renowned cuisine makes a holiday here an absolute must.

« read full article »

Costa Rica Ecotourism, The Gem Called Corcovado

Do your vacation plans include Costa Rica ecotourism? There is a little known gem called Corcovado. Have you ever heard anything about it? No? Well, don't fret because you are not the only one. Corcovado National Park (Parque Nacional Corcovado) is referred to as the Amazon of Costa Rica.

« read full article »


Home | Travel Destinations | Travel News | Travel Directory | Volcano Tours | Gallery | Site Index | Contact WiredTourist.com
Follow us on   Follow us on YouTube  YouTube   Follow us on Flickr  Flickr   Follow us on Twitter  Twitter
©2009-2010 WiredTourist.com