US-backed gaming operators will not be targeted amid China-US tensions: Macau gov’t
Macau Chief Executive Sam Hou Fai has publicly confirmed that US-backed gaming companies operating in Macau will not face retaliatory measures, despite growing geopolitical tensions between China and the United States.
The statement was made during a media briefing on Tuesday, following the conclusion of a six-day visit by Xia Baolong, director of the Hong Kong and Macau Affairs Office under China’s Central Government. In response to a journalist’s question about whether Macau might punish US firms due to the intensifying bilateral conflict, Sam stated that foreign investment remains a core part of Macau’s economic strategy and will continue to be protected.
“Foreign investments are highly welcomed in the Macau SAR,” he said. “This is also one of the goals outlined in my recent Policy Address. According to the law, and as long as they comply with local regulations, all foreign investments will be protected and supported.”
The Chief Executive’s comments mark the first time the Macau government has addressed this issue directly, amid heightened investor concerns about the long-term outlook for American firms in the region. Three US-backed casino operators hold 10-year concessions in Macau (Sands China, MGM Macau, Wynn Macau), making the SAR’s regulatory stance critical for their operations.
At the same briefing, Sam summarized Xia Baolong’s visit, highlighting Macau’s continued reliance on gaming revenue, which accounts for over 80 percent of government tax income. While recognizing the importance of the gaming industry, he acknowledged the pressing need for economic diversification.
“There are real difficulties in shifting our revenue base away from gaming,” he said. “But Macau’s commercial sector has always been aligned with national interests. We must adopt a ‘united front’ mindset to reduce dependency on gaming and explore new paths for growth.”
Shifting trends in Macau
Reflecting on earlier comments made during the US-China trade dispute, Sam said that previous concerns about indirect impacts on Macau’s economy had now materialized more clearly. “The impact is already here. We have more tourists, but spending is down,” he noted.
According to the top official, the consumption patterns and profile of tourists visiting Macau have shifted significantly, prompting the government to adjust its strategic approach. He noted that tourists today, particularly younger generations, are spending less and seeking different types of experiences than in the past. Sam also pointed out that Xia Baolong had been briefed on the rising popularity of so-called “military-style tours” — a travel trend gaining traction among younger visitors.
These tours are characterized by tightly scheduled, fast-paced itineraries with early departures, multiple stops in a single day, and minimal leisure time. While cost-effective and efficient, this style of travel tends to generate lower per-capita spending, posing challenges for sectors such as retail and hospitality that traditionally rely on higher-spending tourists.
To address these trends, the Chief Executive announced new initiatives to promote Macau abroad. “The SAR government will join with the local business community to promote Macau’s tourism and gaming sectors in Portuguese-speaking countries, Spain, and Southeast Asia,” he stated. The campaign also aims to enhance the competitiveness of local SMEs in adapting to new market conditions.
“These measures will help implement concrete solutions, improve governance efficiency, and support Macau’s businesses in exploring overseas markets and new development paths,” he said.
https://agbrief.com/intel/deep-dive/13/05/2025/us-backed-gaming-operators-will-not-be-targeted-amid-china-us-tensions-macau-govt/