General Information

The Macao Special Administrative Region, including the Macao Peninsula, Taipa Island and Coloane Island, is located south of Guangdong Province at the western bank of the Pearl River Estuary. It is contiguous to Gongpei of Zhuhai City, lying close to the South China Sea in the south. It is separated by a river from Wanchai of Zhuhai City in the west and faces Hong Kong in the east by the sea, with a distance of 42 nautical miles. There are passenger services of jet and other steamers between the two places. Its total area covers 23.5 square kilometers. The Macao Peninsular, Taipa Island and Coloane Island are connected by the Friendship Bridge, Macao-Taipa Bridge and a highway. Being subtropical in the typhoon zone, Macao has a warm and humid weather with plenty of rainfall. Macao has a population of 420,000 , of whom 97% are Chinese, 11,000 locally-born Portuguese and over 2,000 Portuguese.

The present political structure was formed in accordance with "the Organic Statue of Portugal" promulgated by Portugal in l976. While the governor of Macao has always been appointed by the Portuguese president and Macao's judiciary is governed by Portuguese laws, the Macao regional government enjoys autonomy in the administrative, economic, financial and legislative affairs. Now Macao is gradually moving towards achieving judicial independence. It has set up a high court and except for individual cases, normally final adjudication is made in local courts. The sovereign organs of Portugal are represented in the territory by the governor (According to "the Organic Statue of Portugal", the governor is equivalent to a minister of the Portuguese government).

At present, the Portuguese Macao government consists of the Governor and seven Secretaries (Secretary for Economic Coordination, Secretary for Transport and Public Works, Secretary for Justice, Secretary for Social Affairs and Budget, Secretary for Administration, Education and Youth, Secretary for Public Security and Secretary for Communications, Tourism and Culture). The Constitution of Portugal provides that the Portuguese Macao Government is accountable to the Portuguese President.

The Macao Legislative Assembly comprises 23 members, 8 elected directly, 8 indirectly, 7 appointed by the Governor. Members serve for four years. The present 6th Legislative Assembly was formed in September, l996. Both the Assembly and Governor have legislative powers.

The Macao Consultative Council is a consultative organ for the Governor, who nominates the members. The Council is made up of senior officials of the Portuguese Macao government and celebrities from all circles in Macao.

GDP

Macao's economy has experienced rapid growth and stagnation in the last two decades. After four years of negative growth, Macao reported 49.8 billion patacas in gross domestic product (GDP) in 2001, representing a 2.1 percent increase to the previous year. This was the second consecutive year that Macao posted GDP growth regardless of the figure was lower than the 4.6 percent registered in 2000. In 2002, Macao's GDP per capita stood at US$15,419 (123,354 patacas), being one of the highest income in the region.

Economy

Macao is an island-type mini-economy whose development is inevitably constrained by its small domestic market, its resources and its own structural limitations. Although Macao has a relatively small economy, it pursues an open economic policy. Macao plays a relatively important role in the regional economies and has been an important gateway and bridge linking Mainland China and the international market.

Macao is one of two international free ports in China. Goods, capital, foreign exchange and people flow freely in and out of Macao, which is integrated with the world economy and maintains traditional and special economic ties with the European Union and the Romance language-speaking countries.

Since the establishment of the Special Administrative Region Government, economic policy in Macao has focused primarily on protecting and streamlining its free market economic system. It has cultivated a world-recognised, free and open, fair and orderly market environment strictly governed by laws to ensure that its economic institutions will continue to thrive and prosper.

Major Industries

Tourism Industry:  Tourism is the backbone of Macao's economy and together with the gaming industry contributes 40 percent to Macao's GDP. In 2001, there was a breakthrough of 10 million visitors travelling Macao, with people arriving from the major markets, such as Hong Kong, Mainland China and Taiwan. In the first half of 2002, there were 5.5 million visitor arrivals recorded, a steady growth of 9.32 percent, compared with the same period of 2001.

The gaming industry, a key component of local tourism industry, saw its 40-year monopoly ended. The Macao SAR Government implemented its master plan on liberalising the gaming industry at the end of 2001. The reform of the gaming industry is to improve its services and drive it towards a diversified direction. Months of negotiations with the concessionaires took place after the announcement of the public tender result in November 2001.With terms and conditions that could achieve the above objectives, the Government signed contracts with the three concessionaires, namely Sociedade de Jogos de Macau (Macau Gaming Company Ltd), Wynn Resorts (Macau) Ltd and Galaxy Casino Company Ltd on 28 March, 24 and 26 June 2002 respectively.

According to these contracts, the three concessionaires are obligated to fulfill their projected investment for about 17.5 billion patacas within ten years.

Manufacturing Industry:  Textile and garment sectors are the key components of the local manufacturing industry, which are still adopting labour-intensive mode of production and export-oriented. Most of its products are exported to the United States and the European Union.

Transportation
 
Macau International Airport commenced operation in November 1995. Since then, it has rapidly established itself as a vital link between the Pearl River Delta, the fastest growing economic region in the world, and the rest of the world. Macao¡¯s hinterland is Zhuhai, one of China¡¯s Special Economic Zones, and a regional manufacturing powerhouse. With well-established and efficient direct land and sea links to neighbouring regions, Macau International Airport is ideally positioned as a hub for freight and express cargo in the Asia-Pacific.

Macau International Airport is a fully functional 24-hour airport. An 11,000-foot ILS CAT II equipped runway, constructed in strict accordance with ICAO standards, is capable of handling long haul flights. Phase one of the airport is equipped with a full range of passenger and cargo facilities designed to handle six million passengers and 165,000 metric tons of freight a year.

Macau International Airport is presently operating under capacity. The airport is not congested and has ample excess capacity for future expansion. In anticipation of its future role as an Asian entertainment and convention centre, Macau is forging new air services agreements with regional and intercontinental destinations in the Asia-Pacific, Europe, America, and Southern Africa. As a preferred entry point to the vast China market, Macao¡¯s 24-hour airport offers passenger and cargo airlines, travel organizations, and the airfreight industry a convenient and flexible alternative to the region¡¯s increasingly congested international airports.

Editor: Donald