Revisiting “Macau’s Culture as an Economic Asset”

In November 2015, I was invited by two colleges at the University of Macau, under a U.S. Fulbright grant, to lecture and conduct research on the city’s cultural and economic diversity. (An earlier version of this article with more historical background can be found HERE.) The two sides of diversity have intrigued me ever since I began studying the eclectic history of Macau, then followed the Special Administrative Region’s (SAR) growing dependence on casino gaming. I was most interested in the apparent “imbalance” in a city with a history of international trade and cultural diversity, which almost 500 years later developed an economy in which 80% of revenues relied on a single industry: gambling. So I wondered how Macau’s 16th century culture, which incorporated Chinese, Malays, Indians, Africans, Japanese, Indonesians, Thais, Filipinos, as well as Portuguese, could withstand the homogenizing effects of 21^st century gaming and luxury hotels. Now I would have the opportunity to study different sides of “diversity” in a modern setting, one in which Macanese culture was both celebrated and marginalized, while the number of casinos and their annual revenue is now five times greater than Las Vegas.                                                                                     

Several later visits to Macau made it clear that the study of contemporary culture in Macau, and perhaps in China, should begin with an understanding that culture and economic development are not mutually exclusive. Unlike American society, in many cases the study of culture today in Asia can involve elements of tourism, entertainment, media, education, and international business. My own research on the Macanese diaspora, which involves migration patterns and commercial partnerships, indicated that it also may involve familial relations. Macau’s casinos are, in fact, not the only attraction. Data from the government’s “Institute of Tourism Studies” indicates that “heritage sites” such as the Historic Centre, a UNESCO World Heritage Site, are now more popular than the casinos. The massive investment by the government in Macau’s culture and history through preservation, which has attracted many visitors, may now be considered among its economic assets. 

Why is this significant ?

Clearly, cultural tourism and business have suffered serious setbacks due to the Covid-19 pandemic, which has affected Macau and every other city around the world. Since March 2020 casino revenue in the SAR has plummeted at least 80%, as travel from Hong Kong, mainland China, Europe, Australia, and the Americas have been virtually cut off. Well before the virus, during a corruption scandal in 2014 -2015 involving high end bettors, Macau’s government was instructed by Beijing to diversify its economy. Little changed and the term of the chief executive ended. In early 2020 a new administrator has recommitted to diversification. In light of the latest circumstances, it would seem to be a good time to outline how economic diversity in Macau may be achieved when the pandemic is over.

Based on previous studies and news reports, China has been consolidating its technology and light manufacturing since 2015 in a designated geographic zone around Shenzhen that recently incorporated Macau and Hong Kong, called the “Greater Bay Area”. This gathering of resources has been enhanced by large investments in transportation infrastructure, including the completion of a 55 kilometre bridge linking Hong Kong, Zhuhai, and Macau, and regional rail lines to ease traffic in anticipation of a return to normal in the next two years. The designation of technology as a focus for local development comes at an opportune time for both the region and for the growth of partnerships with other countries that have cultural ties to Macau.

Another development has been the growth of cultural awareness among Macanese descendants in other countries. Based on recent surveys, a majority of an estimated 1.6 million Luso-Asians (revised since 2015) have been re-connecting via social media and expressing interest in international travel and commercial opportunities in southern China. The identification of working professionals in the diaspora interested in China (despite U.S.- China tensions), together with a large number of technically educated workers and entrepreneurs in Macau, Hong Kong, and mainland China who are attracted to the “Greater Bay Area” region, suggests opportunities for collaboration in the future.

A third area of development may be the blending of cultural tourism in Macau and the surrounding “Greater Bay Area” region, and the promotion of business partnerships by local government agencies. This is where the cross-over between cultural and economic areas has the most potential: through government sponsored visits by international Macanese professionals from diaspora countries, who could tour local technology sites and meet with their counterparts in China. Given the lull in the global economy and investments in Chinese infrastructure and technology, this would seem like an obvious opening to restart after the virus is contained.

Admittedly, based on personal experience this option may be more speculative. Since 2014, when Macau’s gaming economy was expanding with no end in sight, I have had numerous meetings with officials in the Macau government, members of the Legislative Assembly, and representatives of the Beijing government, with little interest expressed in organizing meetings between potential partners in and outside Asia. My guess is that because the gaming economy was so lucrative, there was little incentive inside Macau to diversify. But since Macau is now facing the worst economic depression since World War II, it would seem prudent to reassess how government, business, and tourist agencies might promote the “Greater Bay Area” region to a new generation of visitors, many of whom have expressed an interest in connecting.  

Conclusion

These proposals are not new in China, where the association of culture with economic development is common. The Chinese government, for example, has used cultural ties to maintain contacts with overseas students and professionals for several decades. They also support commercial associations, such as the Guangzhou based “Association of the Thirteen Hongs” (fashioned after 19th century Canton Hongs), for just such purposes. The lack of action does not rest with China, but with local Macanese associations and administrators of the regional government.

The key point is that Macau’s cultural legacy remains an important asset that has not been adequately utilized, especially in light of the SAR’s precarious dependence on gaming and the recent effects of the pandemic. A new strategy involving international Macanese in the diaspora could well lead to enriching government, commercial, and educational partnerships, a journey that can reap multiple benefits for Macau, but only if cultural engagement is used effectively.