Macau’s First Mainland China-Born Hub Leader to Taper Off Gambling

Amid last week’s news of Macau hitting a record 1.1 million visitors during Golden Week, which commemorates the anniversary of the founding of the People’s Republic of China, the largest gambling hub in the world now has a new leader in the person of Sam Hou Fai.

The 62-year-old, who is one of the province’s former top judges, was chosen as the city’s next leader in a largely ceremonial election on Sunday. 

Breaking with Tradition

This marked a significant shift in leadership for the Chinese casino hub, as Hou Fai will become Macau’s first chief executive born in mainland China, breaking with the tradition of electing leaders from influential local business families born in the former Portuguese colony.

Of the 398 members of the election committee, which is dominated by Beijing loyalists, a number of 394 expressed their votes for Hou Fai, who was the sole candidate. 

The remaining four votes were left blank. 

Widely believed to have the backing of Beijing, the new hub leader who previously served as the first President of the Court of Final Appeal of Macau, had no problem securing the endorsement of 386 members during the nomination process. 

Sunday’s voting was just the formality he needed to announce his uncontested election.

Among the influential figures on the committee were Pansy Ho, a Hong Kong billionaire businesswoman who is the daughter of late casino magnate Stanley Ho, the managing director of various companies he founded, including Shun Tak Holdings, and a member of the Macau Legislative Council, co-chairman and executive director of SJM Holding,

Angela Leong, who is also one of Ho’s widows.

Bold Plans Ahead – Hou Fai to Steer the Hub Away from Gambling Reliance 

As Macau’s next leader, Hou Fai, who was born in neighboring Guangdong province, graduated from Beijing’s Peking University and also studied the Portuguese language, culture, and law at the University of Coimbra, aims to guide the city away from its heavy dependence on gaming and gambling, industries that have long fueled its economy. 

In his post-election speech, Hou Fai emphasized his commitment to improving business conditions and offering additional support to smaller enterprises, according to Chinese state media.

Economic diversification has been a key issue for Hou Fai, who has pledged to roll out policies to stimulate growth in sectors that are not related to gaming. 

During a press conference in September, he highlighted the need to develop emerging industries and suggested the creation of public funds to support this transition.

For years, Macau’s status as the only place in Greater China where casinos are legal drew high-spending tourists, making it one of the wealthiest cities in the world per capita. 

However, the city’s reliance on gaming backfired during the COVID-19 pandemic when the industry was severely impacted by border closures and social distancing measures.

Hou Fai’s predecessor, Ho Iat Seng, also focused on diversifying Macau’s economy before stepping down due to health concerns. 

Last year, Ho launched a diversification plan targeting industries such as tourism, commerce, finance, and traditional Chinese medicine. 

In May, he noted that gaming’s share of the city’s GDP had fallen to less than 40% in 2023, down from its peak of about 60% a decade earlier, praising the region’s reduced reliance on the gaming sector while expressing optimism about Macau’s economic prospects and projecting double-digit growth and a return to pre-pandemic levels in the second half of the year.

Assuming Office on Macau’s 25th Anniversary Under Chinese Rule 

Hou Fai’s election is seen as a continuation of this push for economic diversification, aligning with directives from Beijing to reduce Macau’s reliance on gaming. 

He is expected to assume office in December, coinciding with the city’s 25th anniversary under Chinese rule.

In his remarks on Sunday, Hou Fai called his appointment “the highest honor” of his life while pledging to “further promote cooperation with China in areas such as trade, finance, tourism, and high technology,” underscoring the city’s deepening ties with the mainland.

Following the election, Hou Fai received congratulations from several key figures, including China’s Hong Kong and Macau Affairs Office, Macau’s current leader Ho Iat Seng, and Hong Kong chief executive John Lee. 

Mixed Feelings From the Public

With most of the territory’s 687,000 residents lacking voting rights, opinions about the election are mixed. 

While some are hopeful that the new leader will listen to public opinion and not prioritize business interests, others feel alienated from an electoral process in which they have no say.

However, political observers note that many residents are accepting of Hou Fai’s non-local background in a city that has long been home to migrants.

Now that Hou Fai’s victory is secured, the real challenges lie ahead in navigating the complexities of governance.