Xia Baolong, head of the Hong Kong and Macau Affairs Office, has reiterated President Xi Jinping’s strategic vision for the development of Hengqin, emphasizing its crucial role in supporting Macau’s economic diversification and improving the livelihoods of its residents.
“The central government’s decision to develop Hengqin is aimed at facilitating Macau’s economic diversification and enhancing the quality of life for its residents,” Xia stated. He stressed the importance of adhering to this vision and warned that “it is critical not to develop industries or projects that are inconsistent with this strategic direction.”
Xia made these remarks during his address in Beijing on Thursday at the Seminar of the National Hong Kong and Macau Studies Association.
He highlighted that President Xi’s key speeches made during his visit to mark the 25th anniversary of Macau’s return to Chinese sovereignty in December 2022 consistently reaffirmed the central government’s commitment to Hengqin’s development.
Xia explained that the primary objectives of the initiative are to promote the moderate diversification of Macau’s economy and improve the living and employment conditions of its residents.
In the context of supporting Macau’s integration into Mainland China’s development, Xia expressed his hope that Macau would take a more “pragmatic approach” in the near future.
Macau’s transition away from gaming
Macau is the world’s largest gaming hub and the only place in China where gaming is permitted. However, Beijing is working to reduce its reliance on the gaming industry by diversifying job opportunities for its residents. During the seminar in Beijing, President Xi highlighted the need to evaluate policy implementation in key areas, including:
- Evaluating the effectiveness of Hengqin’s development by examining whether it contributes to the moderate diversification of Macau’s economy and improves the quality of life and employment opportunities for its residents
- Assessing progress in utilizing the benefits of “One Country, Two Systems,” as well as aligning regulations and mechanisms between Macau and Mainland China, to achieve new institutional outcomes
- Measuring Hengqin’s integration into the Guangdong-Hong Kong-Macau Greater Bay Area and its contribution to overall market integration in the region, serving as a testing ground for new policies
Macau’s new Chief Executive
It is also worth noting that Macau’s new Chief Executive, Sam Hou Fai, who assumed office on December 20th, 2024, has already made several visits to Hengqin and Guangdong. Even during the Christmas period, he led a delegation to Guangdong, demonstrating his commitment and urgency in advancing Macau’s economic development and regional integration.
During his most recent visit on January 2nd in Hengqin, Sam pledged to further enhance cooperation with Hengqin by sending more public servants to work there, thereby accelerating the integration process.
Differing views on Hengqin’s role
Some Macau gaming operators and industry participants have differing views on how best to leverage Hengqin, particularly in terms of utilizing the area for lower-cost hotel rooms.
Currently, Hengqin has introduced a policy that allows office buildings to be converted into hotels. This development coincides with China’s issuance of a new type of visa permitting multiple entries for tour groups between Macau and Hengqin. This policy will give tour group visitors the option of staying in budget hotels in Hengqin while extending their visit to Macau.
Adding more hotel rooms in Hengqin, along with the new visa facility, will undoubtedly increase competition with Macau’s hotel sector. However, representatives from Macau’s tourism industry, as well as the Macau Tourism Office, have stated that the impact should be minimal.
Recently, SJM Resorts signed a Memorandum of Understanding (MoU) with a subsidiary of Shun Tak Holdings Limited to acquire office properties in Hengqin, which will be converted into a new ‘Lisboa’ brand hotel.
Meanwhile, Galaxy Entertainment has expressed concerns that hotel capacity could become a significant constraint on Macau’s long-term growth. The company is hopeful that further policy breakthroughs will facilitate the development of Hengqin, helping to alleviate some of the current limitations in the hotel sector.
