According to the Outline of the Plan for the Reform and Development
of the Pearl River Delta (2008-2020) as promulgated by the National Development and Reform Commission of the Chinese Government in December 2008, Macao is set to deepen its economic cooperation in the PRD region by constructing the city state as a “world tourism and leisure center”. In view of the literatures regarding the concept of regional economic cooperation and polycentric mega-city region, coupled with the particular economic structure of Macao as the world’s largest casino gaming jurisdiction in its gross gaming revenue, as well as the industrial composition of cities in the PRD region, Macao’s potential roles in the regional economy would be explored in this paper. Indeed, evidences demonstrate that Macao’s development to be a high value-added hospitality hub and a promoter of trade between the PRD cities and the Portuguese-speaking countries are to be the best realistic roles played by Macao in the region. In addition, Macao may also assume a complementary instead of a competitive role in the region’s financial markets, especially in facilitating the anticipated internationalization process of RMB in the coming decade.

Despite the fact that the recent progress of the casino industry has remarkably
expanded the capacity of Macao’s hospitality sector, this industry’s existing
structure with heavy reliance on a unique form of third-party operated gambling-room business segment may indeed curb its potential to be further developed in the region. Related issues would first be disclosed in this paper, then followed by discussion on measures needed as to insure Macao’s effective participation and success in the regional economy. In particular, it is assessed that the existing gaming tax structure should be reviewed strategically as a measure to devote needed resource from the casino gaming to back up the development of Macao to become a high value-added world tourism and leisure center. In addition, strategic move “from near to far” would be validated as another necessary measure for Macao to establish its position to become a core city in the future PRD mega-city region.