Market Overview
* Relatively strong potential to weather downturn. Like Hong Kong, Macau boasts relative strengths (e.g. China proximity and support) and sound budgetary reserves to cushion the current downturn. However, with a less diversified economy and recent blows to its growth engine, gaming, the recovery prospect is less clear.
* Macau is changing rapidly. Formerly a Chinese territory under Portuguese administration, Macau became a Special Administrative Region (SAR) of the People's Republic of China (PRC) upon reversion to China on December 20, 1999. The SAR maintains a high degree of autonomy, and retains its own currency, laws, and border controls. Macau does not use common law, but uses code law patterned on the Portuguese system.
* Key Characteristics: Rapid growth in tourism and inbound investment.
- Population: 557,400 (3Q-2008).
- Visitors: 30.18 million (2008)
- GDP Per Capita: US$36,144 (2007)
- U.S. Exports: US$287.4 million, 4.2% of Macau's imports (Jan - Nov 2008)
- Trading Partners: Mainland China, Hong Kong, Japan, EU, Taiwan and U.S.
* Macau’s GDP grew by 11.3% (q to q) in the third quarter of 2008. As a Special Administrative Region of mainland China, Macau is a free port with low taxation. Since liberalizing the gaming industry in 2002, Macau has received US$6.2 billion in foreign direct investment in the gaming industry (through year end 2007), spurring more visitors and consumption demand. Other recent growth areas include finance, insurance, construction, real estate and retail. Macau’s exports include textiles, garments, toys, electronics, and footwear. The main export market is the U.S., while imports originate primarily from mainland China and Hong Kong.
* Closer Economic Partnership Arrangement (CEPA) with mainland China: Macau’s 2003 agreement with mainland China has enhanced its economic integration with the PRC.
Market Challenges
* Gaming and tourism growth eclipsing other sectors: By 2008, Macau’s gross gaming revenue topped US$14 billion, exceeding that of the State of Nevada. However, many U.S. firms are overlooking opportunities in other sectors. Though small, Macau offers companies a good foothold to get into the region.
* Visa restrictions constrain growth: PRC citizens accounted for 58% of all international visitors to Macau during the first eleven months of 2008. While visitors to Macau increased by 13.4% compared to the same period in 2007, in the final months of 2008, the PRC restricted the availability of visas for its citizens to visit Macau. These restrictions led to a significant slowing in the growth of tourist arrivals and reduced the pace of economic growth in Macau.
* Finding local talent can be challenging: Macau’s explosive growth has led to stiff competition among firms for identifying and retaining high-caliber local managers and staff. Although PRC visa restrictions and resultant slower economic growth eased local staffing constraints near the end of 2008, this challenge will endure due to Macau’s relatively small local population.
Market Opportunities
* U.S. exports to Macau: In the past year (January-October 2008 compared to the same period in 2007), U.S. capital goods exports increased 5.4%. However, U.S. exports of consumer goods decreased 27.4%, fuel and lubricants dropped 84.4%, and raw materials and semi-finished products decreased 0.5%.
* Specific U.S. export opportunities include: The recent expansion of Macau’s hospitality sector has created demand for food and beverage products and services and related hospitality consumables. Other opportunities include: gaming equipment; architectural services; energy-efficient lighting, HVAC systems and “smart building” systems; recreational and sports equipment; security equipment; hotel, restaurant and resort management training services; computer and financial software and MICE related services such as exhibition and event planning.
* Major Macau public and private projects include: Cotai Strip Development with multiple hotels, resorts and gaming facilities, Wynn Resort expansion, Galaxy Resort and Casino, Macao Studio City, Sociedade de Jogos de Macau (SJM), Macau Science Centre, Pac On Terminal, Light Rail Transit System, and the Hong Kong-Macau-Zhuhai Bridge.
* Hengqin Island and Regional Development in Zhuhai, PRC. Hengqin Island in Zhuhai, a stone’s throw from Macau, is earmarked for future development by many of the investors currently building projects in Macau. A number of planned projects have been reported in the press including resorts, hotels, integrated retail and convention centers, luxury villas, education facilities and other services areas in Hengqin and elsewhere in Zhuhai. With focused planning and support from the Beijing-directed integration schemes for the PRD, development of this island could help diversify Macau’s own development beyond gaming.
Market Entry Strategy
* Macau- and Hong Kong-based agents and distributors can increase sales in Macau. Many major gaming and hotel operators in Macau maintain procurement or purchasing offices in Hong Kong.
* The U.S. Commercial Service Office in Hong Kong provides customized market research and business facilitation services in Macau.
* The recently established American Chamber of Commerce in Macau can provide U.S. newcomers with orientation and various types of new member support.
On-going New Projects
| Project |
Investor |
Investment |
| MGM Grand Macao | MGM Grand Paradise Ltd. | US$1 billion |
| Ponte 16 Theme Park | Sociedade de Jogos de Macau, S.A. | US$0.3 billion |
| Wynn Resorts | Wynn Resorts (Macao) Ltd. | US$1 billion |
| Crown Macao | Melco PBL Entertainment | US$0.5 billion |
| The City of Dreams | Melco PBL Entertainment | US$2 billion |
| The Coti Strip | Venetian Macao, S.A. | US$11.8 billion |
| Macao Studio City | Macao Studio City | US$2 billion |
Source: The Macao Government Tourist Office
* Major Macau public infrastructure projects include: Cotai Development, Wynn Resorts, Galaxy Resort and Casino, The Venetian, Sociedade de Jogos de Macau (SJM), and the Hong Kong-Macau-Zhuhai Bridge.
Here are some of the latest Macau Exhibition Events
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Date |
Event Title |
Organizer |
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February 24-26, 2009 |
Clarion Gaming |
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February 28-March 3, 2009 |
MJS Trade Fairs (Macau) Ltd |
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March 3-8, 2009 |
18th Wedding, Banquet, Beauty & Jewellry Expo |
A Plus PR & Advertising Company |
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April 2-4, 2009 |
2009 Macao Inernational Environmental Co-operation Forum and Exhibition (MIECF) |
Government of the Macau Special Administrative Region |
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April 15-16, 2009 |
Asian Pacific Financial Services Association |
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June 2-4, 2009 |
Reed Exhibitions, American Gaming Association |
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June 13-14, 2009 |
19th Wedding, Banquet, Beauty & Jewellery Expo |
A Plus PR & Advertising Company |
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June 25-26, 2009 |
The 3rd Smart Baby Child Expo & digital Home Expo |
A Plus PR & Advertising Company |
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September 8-10, 2009 |
China National Textile and Apparel Council |
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September 19-20, 2009 |
20th Wedding, Banquet, Beauty & Jewellery Expo |
A Plus PR & Advertising Company |
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October 13-15, 2009 |
International Council of Shopping Centers |
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October 22-25, 2009 |
14th Macao International Trade & Investment Fair (MIF) |
Macao Trade & Investment Promotion Institute |
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October 22-25, 2009 |
Wine & Gourmet Asia 2009 |
Coastal International Exhibition Co., Ltd. |
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November 6-15, 2009 |
Standard Exhibition (China) Consultant Service Ltd. |
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November 10-12, 2009 |
The GSM Association |
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November 12-14, 2009 |
The 4th International Audio, Lighting & Performance Entertainment Expo |
Coastal International Exhibition Co., Ltd. |
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November 12-14, 2009 |
Coastal International Exhibition Co., Ltd. |
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November 12-14, 2009 |
Coastal International Exhibition Co., Ltd. |
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November 12-14, 2009 |
Coastal International Exhibition Co., Ltd. |
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November 12-14, 2009 |
The 2nd International Leisure Travel, Tourism Commodities & Gift Trade Fair |
Coastal International Exhibition Co., Ltd. |
For more information on doing business in Macau, send email to: James Mayfield