Hong Kong’s The Standard has reported scuffles at Macau’s May Day gathering, caused by local frustration over economic changes in the region. In 2004 we reported: ‘The downside to all the glitz and glamour and gaming dollars is a falling quality of life. Unemployment figures may have been slashed but living expenses have rocketed.’ The Macau government finances 77% of its budget from gambling taxes and accepts that workforce problems stem from the heavy reliance on the gambling industry.

The fishing village with its gambling dens has become modern casino tourist hotspot, and labour is now being brought in to service the casino industry. An additional 110,000 workers could be needed over the next three years and there is already a severe shortage of manpower in the construction and gambling industries. Other local businesses cannot compete with casino wages and locals unemployable in the gambling industry see their standard of living rapidly eroding.

In the long term Macau will have to look to widen its economic base. Some moves have already been made, including closer economic integration with the Chinese mainland. It is hoped that the development of a free trade zone in Zhuhai will attract more trade fairs and exhibitions, not only in the gaming sector. Pushing education for local children in order to create more university graduates is another long term solution to providing skilled workers from the local population.

The gambling industry, fuelled by the emerging Chinese tourist market, has filled the void left by a diminishing garment industry. In the immediate future gaming will continue its rapid expansion and for the most part the Macau will benefit. It is hard to imagine that local discontent could ever evolve into more than minor scuffles but the government is already seeking to minimise the adverse impact of the economic changes that have brought a widening gap between rich and poor. (E-05.03.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage