At the end of the next decade, gambling will remain the mainstay of Macau’s economy. The wall that Beijing has built seems to keep the industry asphyxiated, but the reopening has ensured that it is not suffocating. So far, the results are positive and one can think of a future in which the game survives. However, there are doubts whether the sky is the limit, or whether it is closer to the ground. Even without predicting a premature end, as a result of the first quarter numbers, it is known that everything can have a short leg. Macau has been benefiting from unrequited demand from airlines in China, which are struggling to regain capacity. On the other hand, the population still sees leaving the country with some trepidation.
Even if the revenues were assured, these companies’ increased responsibilities were enshrined in the new contracts. Although specialized in gambling, they are now obliged to develop a profitable extra-gambling operation. This need to radically change the business model will certainly redesign the city’s working environment, but also the Government’s relationship with operators.
Most of the city’s events are funded by concessionaires but managed by public departments. In some of these events, the revenue is even on the side of the Government. Recovering from the financial haemorrhage of the past three years, can they afford to pass up opportunities? In some cases, they are already demanding greater control of these operations, despite their lack of experience in dealing with anything other than gambling.
But by withdrawing that responsibility from the Government, they interfere with its role and with the need to reorganize the Civil Service itself. If the majority of events pass into the direct domain of the concessionaires, many of the public servants are no longer useful. To this can be added the interest in reducing public costs. In a utopia, these workers would simply migrate to the private sector, filling the concessionaires’ visible gaps in non-gaming talent. However, this is a naive mentality, because mechanisms are needed to guarantee this transition. At the same time, the Government has to protect its relevance, under penalty of losing control of public and political interests, but it also cannot cut the legs of the concessionaires, in charge of building the new Macau.
*Executive Director of PLATAFORMA
