Osmond ChiaBusiness reporter
Macau, which overtook Las Vegas almost 20 years ago as the world’s biggest gambling hub, is now trying to become a major centre for healthcare tourism.
The special administrative region of China saw the opening this week of a so-called resort hospital that provides luxury medical services, including health screening, advanced scans and cosmetic procedures.
It suggests a Beijing-driven push for a more diversified economy has ramped up.
Macau’s casinos were forced to close during the Covid-19 pandemic, wiping out revenues. While the city’s economy has since recovered, officials are working to re-direct it away from gambling and towards industries such as healthcare, technology and events.
The region has long capitalised on its history as a gambling centre, drawing visitors from mainland China, Hong Kong and other parts of Asia.
The private healthcare group that is behind the medical resort, iRad Hospital, puts that figure at almost 40 million visitors a year. And it is hoping that the offer of healthcare services means people will stay longer and spend more.
The facility is in Studio City, a Hollywood-themed casino and entertainment resort owned by a Hong Kong-based group.
Macau’s gaming boom began in the early 2000s when authorities opened its gambling market to global casino operators, shortly after the former Portugese colony returned to Chinese control in 1999.
Since overtaking Las Vegas for gambling earnings, Macau has struggled to expand its economy beyond entertainment.
Gaming-related taxes still account for the majority of its government revenue.
The pressure to diversify the economy is likely to be coming all the way from the top – during a visit in late 2024, Chinese leader Xi Jinping emphasised the need for “economic diversification” and “new industries with international competitiveness”.
Unlike Hong Kong, which had a prominent pro-democracy movement that challenged Beijing’s rule, Macau has had a smoother relationship with the Chinese Communist Party.
But that has changed recently, with observers citing greater evidence of Beijing’s attempts to rein in Macau – the most recent legislative polls saw a low turnout after several candidates were disqualified under a new law.
One of the city’s biggest gambling tycoons was jailed for 18 years for organised crime in early 2023, among other charges. And a new security law kicked in a few months later, targeting foreign interference and opposition to Beijing.
The flashy displays of wealth in the gambling hub, and its image as a playground for the rich, appear to have troubled the Party – especially as Xi sought to crack down on exactly that on the mainland, encouraging “common prosperity” instead.
That is also why Beijing has been pushing for Macau’s economy to move away from gambling.
Medical tourism appears to have emerged as a potential alternative, given Asia has been a major hub for it, with wealthy patients heading to South Korea for cosmetic surgeries and to Singapore for advanced treatments.
India too is a popular destination for medical tourists, offering cheaper treatments compared to Western countries.
The global medical tourism industry is worth tens of billions of dollars and is projected to grow significantly over the next decade, according to market estimates.
