Macau, as a gambling city adjacent to Hong Kong, has been distributing of MOP$ 10,000 to its permanent residents annually for the past 19 years, which made Macau of getting lots of admiration from Hang Kongers. Recently, Macau government suddenly announced that the operation of eleven small satellite casinos will be terminated at the end of this year. This sudden decision has shocked the local Casino gambling industry.
The secondary licenses of casinos granted by the Macau government lowered requirements for operators, so they had attracted many stakeholders of legitimate licensed casinos to compete for operation. Most of these satellite casinos are located in the NAPE which is near the Outer Harbor Ferry Terminal to Hong Kong. Since the opening of the satellite casinos in this district, several hotels, dozens of restaurants, pawnshops, convenience stores and other livelihood stores have been operating in the surrounding areas.
The Macau government will not renew the licenses for these small casinos and requires its parent companies (licensed casinos) to rehire all 5,600 employees working in the satellite casinos. As the growth rate of gambling revenue has slowed down recently, its parent companies may not be able to renew employment of all these relevant employees.
When the satellite casinos are closed at the end of this year, the turnover of more than one hundred shops nearby which have been serving the gambling industry will drop significantly due to the loss of gamblers’purchasing power.
Among them, hotels, pawnshops, and restaurants are the first batch of industries to be hit hard. A large-scale closure wave is imminent. Dozens of shops will become negative assets due to the sharp drop in rents. In addition, hundreds of shop employees may be unemployed, creating a new empty zone within the hub of urban Macau.
In order to transfer NAPE (adjacent to Outer Harbor Ferry Terminal) to a tranquil place, Macau government may cause up to 5,600 people to lose their jobs. The loss of the market value of the ground floor shops accounting for billions. A large number of shop owners are beyond tears since the government declaration, and banks have to prepare to write off for the falling value of these mortgaged shops. Macau looks prosperous today, but in fact there are 200,000 foreign workers, and young people do not come easily to find jobs. Recently, a medical institution published an advertisement to hire a licensed Doctor with one-year experience, the pitiful salary was MOP$15,000. In the past week, six cases of committed suicide were recorded. This is the underbelly of Macau’s prosperity.