Macau Gambling Economy
So called "The Monte Carlo of the Orient", Macau has a economic pattern relying very much on gambling. Nowadays, the gambling industry generates over 40% of the GDP of Macau.
Since the early 1960s, around 50% of Macau's official revenue have been driven from gambling. The percentage maintains until in the late 1990s. In 1998, 44.5% of total government revenue was gained from the direct tax of gambling.
Then there was a 9.1% decrease in 1999. It was probably due to internet gaming, with its worldwide access, it was started in Macau in summer 2000 and made a significant drop in the government income.
However, after the handover of the Macau from Portugal to China, the SAR released gambling licenses to other companies in order to eliminate the monopoly played by the Sociedade de Turismo e Diversoes de Macau.
In 2002, the government facilitated the liberation of gambling industries by signing concession contracts with two Macau Gaming companies, Wynn Resort Ltd. and Galaxy Casino.
This action opens the gambling market for competition and increased the government revenue(mainly from taxes) by a large fraction. It can also attrats more tourists to Macau.
At this moment, from official statistics, gambling taxes form 64% of the government income, that is absolutely a dramatic number that could hardly be imagined.
However the gambling business is also the source of instability in the Macau economy, as the nature of gambling industry is not susceptible to technological advancement or productivity growth.
Yet for the best possible fortune, the gambling business is still dependent on the prosperity of the Asian economies, especially that of Hong Kong.
As a result, the economy of Macau will always be dependent on that of Hong Kong.
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