The Chinese idiom “review the old and learn the new” reminds us that progress does not necessarily require abandoning the foundations that made success possible. Rather, it is often by building upon existing strengths and adapting to new realities that societies continue to prosper, which, in many ways, reflects the Macao Special Administrative Region’s current economic journey. Gaming transformed the city and brought prosperity, but the next stage of development will depend on its ability to cultivate new growth engines.
Macao’s tourism sector continues to demonstrate remarkable momentum: In 2025, as per the official data, the city welcomed a record 40.06 million visitor arrivals, surpassing pre-COVID pandemic levels and exceeding the previous record set in 2019. The momentum has continued into 2026, with more than 14.6 million visitor arrivals recorded in the first four months alone, underlining the resilience and continued attractiveness of the city as a tourist destination.
But Macao’s ambition today extends far beyond gaming. In recent years, the city has accelerated efforts to diversify its economy through the “1+4” development strategy, under which tourism and leisure remain the core pillar, while four additional sectors (the traditional Chinese medicine and health industries; modern financial services; high technology; and conventions, exhibitions, culture and sports) are expected to become new drivers of long-term growth.
Having visited Macao on several occasions over the years, I have always found it fascinating how a city so strongly associated with gaming possesses such a rich cultural heritage and such a unique combination of Chinese and Portuguese influences. While it had long been an integral part of China, its history as a Portuguese settlement from the 16th century until its return to the motherland in 1999 left a deep and lasting imprint, which became part of what makes Macao distinctive today.
To sum up, the “1+4” strategy reflects an understanding that resilience and competitiveness require constant adaptation. It is true that gaming will undoubtedly remain an important pillar of Macao’s economy, just as finance will continue to underpin Hong Kong’s success, but long-term prosperity often depends on the ability to build upon existing strengths while embracing new opportunities. Judging by the direction it is taking, Macao’s next chapter may prove every bit as fascinating as the one that brought it to where it is today
Separated by only 60 kilometers of sea from Hong Kong, the two special administrative regions have many differences from an economic standpoint, but share many similarities, such as their involvement in the Guangdong-Hong Kong-Macao Greater Bay Area. The differences between the two SARs can partly be explained by their different heritages. When the Portuguese left Macao in 1999 after centuries of administration, they left a region with a very rich cultural heritage and an enclave whose economy centered on gambling. Hong Kong, on the other hand, was focused on leveraging its geopolitical position as well as its very strong financial industry, allowing it to transform itself into a gateway to the Chinese mainland. In other words, the two SARs trod different economic paths, but ones that were complementary in many ways.
In December 2019, China’s banking and insurance regulator announced a series of policies to deepen financial ties between Macao and the mainland, not as a way to replace Hong Kong but as a way to transform Macao into a secondary offshore financial center for China, thus reducing Macao’s overreliance on gaming. Finance is thus emerging gradually as one of Macao’s new growth areas. Multiple initiatives launched in recent years point to the city’s ambition to develop specialized financial services that complement, rather than compete with, Hong Kong’s much larger international financial ecosystem.
This evolution should not be interpreted as a departure from Macao’s past, but rather as a natural progression, to leverage existing strengths to create new opportunities. Tourism itself illustrates this point well. Historically, Macao’s tourism sector revolved around gaming and entertainment. Today, travelers increasingly seek experiences that combine culture, gastronomy, wellness, heritage and sustainability. In this respect, Macao possesses unique advantages, given its blend of Chinese and Portuguese traditions, its UNESCO World Heritage sites and its reputation as a gastronomic destination, which give the city a distinctive identity.
Sustainable tourism is becoming increasingly important worldwide. Travelers are paying greater attention to environmental responsibility, authenticity and quality experiences. Governments are also recognizing that tourism should create broader socioeconomic benefits rather than relying solely on visitor numbers. Macao’s “1+4” strategy aligns well with these trends.
One of the most promising areas lies in meetings, incentives, conferences and exhibitions (MICE). The city has already established itself as a leading destination for international events. By leveraging its infrastructure and proximity to major cities in the Greater Bay Area, Macao can continue attracting conferences, exhibitions and business events that generate value far beyond tourism spending.
High technology is equally important: Macao’s future competitiveness will increasingly depend on its ability to attract talent, support entrepreneurship and foster collaboration with research institutions and neighboring innovation hubs. Closer integration with Hengqin and the Greater Bay Area creates opportunities that were unimaginable just a few decades ago. This is particularly true given that the Shenzhen-Hong Kong-Guangzhou cluster topped the Global Innovation Index 2025 rankings, becoming the world’s leading innovation cluster.
For example, Macao is diversifying its financial sector not through a traditional equity market, but by operating specialized financial asset exchange platforms. Macao also leverages its position as a trade and commercial services platform between the mainland and Portuguese-speaking countries. At the same time, “enclave economies” continue to thrive, notably the Traditional Chinese Medicine Science and Technology Industrial Park in Hengqin. Moving forward, the key element driving these goals is Macao’s alignment with national development strategies under the 15th Five-Year Plan (2026-30).
The Greater Bay Area offers a unique framework for this transformation. The leading cities in the region are expected to leverage their respective strengths to contribute to the project’s success. Hong Kong will contribute its expertise in banking and financial services; Shenzhen will leverage its technological prowess; Guangzhou will contribute with manufacturing and research capabilities; and Macao will contribute with tourism, cultural exchanges and its links with Portuguese-speaking countries. Together, these strengths create one of the most dynamic regional ecosystems in the world. The central government’s support for Macao’s development and closer integration with Hengqin further reinforces these opportunities.
To sum up, the “1+4” strategy reflects an understanding that resilience and competitiveness require constant adaptation. It is true that gaming will undoubtedly remain an important pillar of Macao’s economy, just as finance will continue to underpin Hong Kong’s success, but long-term prosperity often depends on the ability to build upon existing strengths while embracing new opportunities. Judging by the direction it is taking, Macao’s next chapter may prove every bit as fascinating as the one that brought it to where it is today.
The author is a fintech adviser, a researcher and a former business analyst for a Hong Kong publicly listed company.
The views do not necessarily reflect those of China Daily.
