Macau, which overtook Las Vegas nearly 20 years ago as the world’s largest gambling center, is now trying to become a major center for medical tourism.
China’s special administrative region saw the opening this week of a so-called resort hospital that provides luxury medical services, including health checkups, advanced scans and cosmetic procedures.
This suggests that Beijing’s push for a more diversified economy has intensified.
Macau’s casinos were forced to close during the Covid-19 pandemic, wiping out their revenues. While the city’s economy has since recovered, authorities are working to reorient it away from gaming and towards sectors such as healthcare, technology and events.
The region has long capitalized on its history as a gaming hub, attracting visitors from mainland China, Hong Kong and other parts of Asia.
The private healthcare group behind the medical complex, iRad Hospital, puts the figure at nearly 40 million visitors a year. And the hope is that the provision of health services will allow people to stay longer and spend more.
The facility is in Studio City, a Hollywood-themed casino and entertainment complex owned by a Hong Kong-based group.
Macau’s gambling boom began in the early 2000s, when authorities opened its gambling market to global casino operators, shortly after the former Portuguese colony returned to Chinese control in 1999.
Since overtaking Las Vegas in gaming revenue, Macau has struggled to expand its economy beyond entertainment.
Gaming-related taxes still represent the majority of public revenue.
Pressure to diversify the economy will likely come from above: during a visit in late 2024, Chinese leader Xi Jinping stressed the need for “economic diversification” and “new, internationally competitive industries.”
Unlike Hong Kong, which had a large pro-democracy movement that challenged Beijing’s regime, Macau has a smoother relationship with the Chinese Communist Party.
But that has changed recently, with observers citing growing evidence of Beijing’s attempts to control Macau: the most recent legislative elections saw low turnout after several candidates were disqualified under a new law.
One of the city’s biggest gaming moguls was jailed for 18 years for organized crime in early 2023, among other charges. And a new security law took effect a few months later, targeting foreign interference and opposition to Beijing.
The gambling center’s flashy displays of wealth and its image as a playground for the rich appear to have troubled the Party – especially as Xi sought to crack down on precisely that on the mainland, encouraging “common prosperity” instead.
This is also why Beijing is pushing for Macau’s economy to move away from gambling.
Medical tourism appears to have emerged as a potential alternative, given that Asia is a major hub, with wealthy patients traveling to South Korea for cosmetic surgeries and Singapore for advanced treatments.
India is also a popular destination for medical tourists, offering cheaper treatments than Western countries.
The global medical tourism industry is worth tens of billions of dollars and is expected to see significant growth over the next decade, according to market estimates.
