By ZHAO RUOXI*
Macau has managed to preserve its stability and unique identity while experiencing significant socio-economic and cultural development.
This year marks the 25th anniversary of Macao’s return to Chinese sovereignty, a unique opportunity to reflect on the remarkable progress made by the region since December 20, 1999. Under the “One Country, Two Systems” model, Macao has managed to preserve its stability and unique identity, while experiencing significant socio-economic and cultural development.
This model allowed the region to maintain its capitalist system, legal system and way of life, while integrating into the rise of a modern China. This approach was crucial in ensuring continuity and stability, preserving Macau’s historic role as an international center of commerce and culture.
The Basic Law, which guarantees a high degree of autonomy, has been instrumental in the successful implementation of this system, allowing Macao to thrive as a Special Administrative Region over the past 25 years. The resulting political stability has allowed the government to focus on long-term development, strengthening governance and economic resilience.
Macau has established itself as a global tourism and leisure destination, widely known for its gambling industry. The region, which generates more revenue than Las Vegas, maintains its position as the world’s largest gambling hub. In 2024, as of early December, Macau had already welcomed 32,5 million visitors, with the number expected to surpass 33 million by the end of the year – impressive numbers for a territory measuring just 32,9 square kilometers.
However, economic diversification has become a strategic priority. Initiatives targeting cultural tourism, conventions, exhibitions and related sectors demonstrate the commitment to diversifying beyond gaming. Projects such as the Guangdong-Macao In-depth Cooperation Zone in Hengqin aim to integrate Macao into the industrial and innovation systems of the Pearl River Delta, creating a more diversified and sustainable economic base.
In the social field, Macau has implemented policies that greatly benefit its residents, fostering a harmonious society. Subsidies for housing, health and education have raised living standards and reduced inequalities. According to data from the World Bank and the International Monetary Fund, Macau will have one of the highest GDPs per capita in the world by 2024, which reflects the prosperity shared by its citizens.
Education plays a central role in this success. Investment in higher education has increased the region’s international competitiveness, with institutions such as the University of Macau emerging as centres of research excellence, attracting talent from Asia and beyond. The government is also investing in promoting Macau’s multicultural heritage, evident in its architecture, festivals and culinary traditions, which combine elements of Chinese and Portuguese cultures. In 2005, UNESCO recognised the Historic Centre of Macau as a World Heritage Site, reinforcing the city’s global cultural significance.
As an integral part of the Greater Bay Area, Macao has leveraged infrastructure landmarks such as the Hong Kong-Zhuhai-Macao Bridge to strengthen regional cooperation and connectivity. Projects such as the Guangdong-Macao In-depth Cooperation Zone in Hengqin have fostered economic diversification, attracting over 4.000 Macao enterprises in sectors such as financial services, cultural tourism and innovative industries.
The tourism and events sector is also booming, with over 1,6 million participants expected to attend MICE events in 2024, cementing Macao’s role in the US$1,8 trillion Greater Bay Area economy. In addition, Macao has been promoting talent exchange and innovation, and stepping up educational and research cooperation, with a focus on the University of Macau’s Hengqin campus.
The adoption of green and digital technologies reflects the region's commitment to sustainable development and integration into the Greater Bay Area's smart city goals.
Despite its progress, Macau faces challenges. The COVID-19 pandemic has exposed vulnerabilities in over-reliance on tourism, highlighting the urgent need for economic diversification. At the same time, urban expansion through land reclamation projects has raised environmental concerns.
Going forward, balancing economic growth and sustainability will be essential to maintaining Macau’s role as a resilient and innovative partner in the Greater Bay Area. Urban expansion projects need to carefully address ecological impacts, while continued emphasis on green initiatives and smart technologies can position Macau as a model for sustainable urban development.
Macau’s history also offers valuable lessons for the international community. Its ability to balance local autonomy with national integration demonstrates the potential for more sophisticated governance models in diverse societies. The “One Country, Two Systems” model has been a cornerstone of this success, proving that political stability and cultural preservation can coexist with economic modernization.
As Macau celebrates 25 years since its return to China, it highlights that cooperation, innovation and inclusion can generate prosperity in an increasingly interconnected world.
*Zhao Ruoxi is a PhD candidate at the Macau University of Science and Technology.
the earth is round there is thanks to our readers and supporters.
Help us keep this idea going.
CONTRIBUTE
