Tourists take selfies at Senado Square in South China's Macao on December 17, 2024. Photo: Lin Xiaoyi/GT

Children waved national flags, their laughter filling the air as they posed for photo in front of the banners marking the 25th anniversary of Macao Special Administrative Region (SAR)'s return to the motherland at the iconic Ruins of St. Paul's. The streets were alive with celebration, lined with national and regional flags, while taxis proudly displayed dual flags, adding to the festive energy sweeping through the city.

This year marks the 75th anniversary of the founding of the People's Republic of China and the 25th anniversary of Macao SAR's return to the motherland. With support from the central government and the mainland, Macao has made solid progress in achieving moderate economic diversification.

Macao's GDP has grown from MOP 51.9 billion ($6.46 billion) in 1999 to MOP 444.5 billion in 2019, averaging an annual growth rate of 11 percent. In 2023, its GDP growth soared by 80.5 percent, with per capita GDP ranking among the highest globally, according to Government Portal of Macao SAR.

"Before the handover, Macao faced four years of economic decline, poor public security and an economy heavily reliant on gaming. After the handover, with policy support and social stability, the cultural and tourism industries expanded, economic diversification progressed, and confidence among citizens and investors was restored," Lao Ngai Leong, a member of the Executive Council for the sixth-term Government of the Macao SAR told the Global Times on Friday.

Over the years, the Macao SAR has embraced a strategy to diversify its economy with strong support from the central government, moving beyond its historic reliance on the gaming industry, Liang Haiming, chairman of the Hong Kong-based China Silk Road iValley Research Institute, told the Global Times on Friday.

On November 1, 2023, the "Development Plan for Appropriate Economic Diversification of the Macao Special Administrative Region (2024-2028)" was announced, which is Macao's first comprehensive and systematic industrial development plan, proposing the "1+4" development strategy.

The "1+4" appropriate diversification development strategy aims to enrich Macao's function as "One Center" for integrated tourism and leisure, while facilitating the development of four nascent industries, namely: the "Big Health" industry; modern financial services; high and new technology; and convention and exhibition, sports, and the commercial and trade industries, according to Government Portal of Macao SAR.

"With strong support from the central government, we've promoted economic diversification while preserving our social system and way of life. As manufacturing moved to the mainland, Macao has expanded into sectors like technology, modern finance, healthcare, and cultural tourism," Lao said.


Diversification drives growth

Over the years, Macao's "integrated tourism and leisure enterprises" have expanded their business scope. "Our company is now excelling in developing to non-gaming offerings such as exhibitions and conferences, entertainment performances, sports extravaganzas, and cultural showcases," Buddy Lam, Director of Corporate Affairs at Galaxy Entertainment Group, told the Global Times on Thursday. "These efforts have significantly contributed to Macao's position as a World Center of Tourism and Leisure."

GEG's flagship property, Galaxy Macau, is one of the largest and most diverse integrated destinations in the world. Lam stressed that as a patriotic Chinese enterprise deeply rooted in Macao, GEG is fully committed to supporting the Macao SAR Government's policies and directions for driving Macao's "1+4" diversified development.

For example, GEG has collaborated with the Macao SAR government's Cultural Affairs Bureau to revitalize the historic Lai Chi Vun Shipyards. Reopened on December 7, 2024, it now hosts exhibitions, film screenings, cultural markets, and interactive events, establishing itself as a new cultural tourism landmark in Coloane, Lam said.

There are a greater frequency and variety of flights departing from Macao. As of December 7, Macao had recorded over 200 million border crossings this year, up 9.4 percent from 180 million in 2023, setting a new record according to China Media Group.

Zhang Yun, vice president of Customer Services cum Commercial of Air Macau Company Limited, told the Global Times on Friday that since its establishment in 1994, the airline has shifted from indirect flights between the Chinese mainland and Macao to direct services and adapted its business model to focus on the mainland market, aligning with the growth of Macao's tourism and gambling sectors.

By discontinuing cargo services, changing the operating mode, and refocusing on the mainland market, the company turned its losses into profits. Today, Air Macau operates an expanding network, serving travelers to and from Macao, local residents, Greater Bay Area residents, and international passengers, according to Zhang.

Under central government's support, Macao is on its way to becoming a world-class tourism and leisure hub, a trade platform for China and Portuguese-speaking countries, and a cultural exchange center rooted in Chinese culture. In 2023, non-gaming industries contributed MOP 220.73 billion in added value, highlighting the progress toward a more balanced economic structure, according to People's Daily Online.


New economic horizons

"The construction of Greater Bay Area and the establishment of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin have opened new growth opportunities for Macao, facilitating business expansion, fostering youth entrepreneurship, and enhancing residents' quality of life," Lao said.

"Through collaboration with Hengqin, Macao has expanded its urban space while boosting hotel capacity by developing cargo services, simplifying travel permit processes, and repurposing office buildings into hotels. The University of Macao's Hengqin campus further supports talent development," Zhang said.

"With 85 square kilometers of maritime jurisdiction granted by the central government, Macao is strategically positioned to develop its marine economy," Lao said. "For example, Macao is leveraging the inner harbor, with events like fireworks displays to boost tourism and consumption. Also, Macao is collaborating with Zhuhai, a city in Guangdong and nearby regions to address challenges arising from the absence of a deep-water port," he added.

Lao noted that integrated resort industries in Macao are expanding, establishing the city as a center for performing arts and sports. Events like the World Chinese Entrepreneurs Convention highlight Macao's strengths in conferences and exhibitions, boosting cultural tourism.

"Macao's free port status, with low taxes and free flow of people and capital, positions it as a vital hub for international trade and financial activities," Lao said.

Over the past 25 years, Macao has joined over 190 international organizations, gained visa-free or visa-on-arrival access to 147 countries and regions, and is covered by over 750 multilateral treaties. It has signed nearly 60 agreements with foreign entities while establishing robust trade and cultural connections with over 120 countries and regions, with 13 sister cities. In 2023, Macao's trade with Belt and Road partner countries reached nearly 30 billion yuan ($4.11 billion), a record high, a Foreign Ministry spokesperson said on Wednesday.

"Since Macao SAR's return to the motherland, the region has gained broad recognition across all sectors, synchronizing its development with Guangdong and other regions in China. By integrating into national and regional strategies and leveraging the 'one country, two systems' policy, Macao has accelerated its economic development," Liang said.

Also, the region's multicultural and pragmatic environment attracts politically neutral, international financial elites. Looking ahead, Macao is poised to continue thriving and gradually establish itself as a regional financial hub, he added.