Macau’s casino industry is the single most important component of the SAR’s GDP. Recently the industry has been reformed, liberalized and is seeking to shed its former image and become a Las-Vegas style family resort.
With the Communist Revolution in 1949 the new government of the Mainland declared the treaty unequal though prevented the Cultural Revolution from seizing Macau back. In 1974 Portugal offered to cede the territory back to China but Beijing refused the offer wishing to settle the thornier issue of Hong Kong first. In 1987 it was agreed that in 1999 Macau would become a Special Administrative Region of China retaining its existing way of life in a similar manner to that granted to Hong Kong as an SAR. Macau is to remain a free port, the currency (pataca) will remain convertible and there will still be no exchange controls. Macau is now a Special Administrative Region of China under the “One Country Two Systems” formula. Traditionally, Macau has been largely a day-trip and short break destination for Hong Kong residents. With the liberalising of travel regulations in China Macau started to receive a growing number of Mainland visitors. Macau is best known for its casinos and gambling culture which provide betting for people from Hong Kong, the PRC and throughout Asia where casinos are largely banned or heavily restricted. However, the casinos, while being responsible for attracting large number of visitors, have also been partly responsible for the rise in crime and violence that have deterred many visitors in recent years.