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Macau's casino boom brings prosperity, but at a price, 25 years after China took over

    MACAO (AP) — When Portugal returned its colony of Macau to China in 1999, coffee shop owner Daniel Chao was a first-grader living in a different world.

    Since then, his sleepy hometown has transformed into a bustling gaming hub filled with glittering casinos. The once quiet streets are now packed with tourist buses. But the growing wealth of the city dubbed the “Las Vegas of the East” has not brought with it qualities of sustainable development such as economic diversity and high citizen participation.

    “What was once a relaxed, free place in my childhood has become a place that is crowded and highly commercialized,” says Chao.

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    Macau marks the 25th anniversary of its return to Chinese rule on Friday. Chinese President Xi Jinping is visiting the city for three days and the city is decorated with festive banners and other decorations. A fireworks show is planned for next week.

    Since 1999, the city of 687,000 has transformed from a monopoly-driven gambling enclave into the world's largest gaming hub, teeming with mainland Chinese tourists. Gross domestic product per capita has more than quadrupled to $68,000, about on par with Denmark and Australia, and surpassing that of Hong Kong, which is around $50,000.

    China governs Macau under a “one country, two systems” arrangement, similar to the administration of Hong Kong, a former British colony. Macao is the only Chinese city where casino gambling is legal and has resorts run by subsidiaries of US gaming giants MGM Resorts, Las Vegas Sands and Wynn Resorts.

    Since Macau opened its casino market after its handover to Beijing, its economy has grown from $6.5 billion in 1999 to $46 billion in 2023, despite economic slumps during the COVID-19 pandemic and a crackdown on visiting junkets of high-rollers have facilitated. gamblers from elsewhere.

    Economic growth has come at a price.

    Chao's mother worked a casino job, which provided better pay and a larger apartment, but also stress and irregular hours. He remembers doing homework at five in the morning, after her night shift. When he worked as a teacher, his students often went to bed late or had to rely on paid tutors because their parents also worked casino shifts.

    The city's tourism boom has provided years of easy money, leaving businesses with little incentive to strive to improve their products or services and develop the resilience needed to weather the tough times of the pandemic and competition of Chinese products on the mainland, Chao and some other residents said. .

    Chao considered leaving town, but chose to stay.

    “Leaving must come at a high price,” he said, adding that “it appears Macau is not exactly unliveable yet.”

    The ruling Communist Party's agenda for Macau now prevails, with city leaders often citing national plans. That's a marked shift from the past, when the city rarely experienced any direct impact from Beijing, said Ieong Meng U, a professor at the University of Macao's department of government and public administration.

    He expects Macau to become increasingly integrated with nearby Guangdong province over the next decade, following plans to promote tourism, Chinese medicine, finance, technology and exhibitions.

    China has designated a special zone on Hengqin Island in the neighboring city of Zhuhai, jointly administered by Guangdong and Macau, which is expected to have a population of about 120,000 Macau residents by 2035.

    The closer economic ties have coincided with more intrusive political controls, especially after massive anti-government protests in Hong Kong in 2019 that prompted Beijing to crack down on almost all public dissent.

    A vigil commemorating China's bloody 1989 military crackdown on pro-democracy protests in Tiananmen Square was banned. Pro-democracy figures were banned from participating in Macau's 2021 parliamentary elections. Last year, the city tightened its national security law. In November, the Macao Journalists Association expressed concern about signs of declining press freedom, saying some local media outlets had been asked to retract their articles under political pressure.

    Activist Jason Chao, no relation to Daniel Chao, decided to leave.

    After years of working to promote greater democracy, he became frustrated with officials' lack of willingness to change and the tendency of Macau residents to rely on Beijing's help or personal connections to solve problems rather than citizen participation, a practice he believes stems in part from the city's colonial heritage under Portuguese rule.

    “I exhausted the tactics I learned back then,” Chao said.

    In 2017, Chao left to study abroad. He is now director of a community organization serving immigrants from Hong Kong in Britain.

    Some older residents believe life has improved over the past quarter century.

    Ka Man Chun, a retiree, likes the annual cash payments, funded by gambling tax reserves, that the government has been giving to residents since 2008. This year, each permanent resident received $1,240,

    Ka says he feels safe because he avoids politics.

    “25 years have passed and there's nothing really bad,” he said.

    Macau's public safety, economy and prosperity have improved significantly from the colonial era, said Anna Ng, a flower shop owner in her 60s.

    While critics say Macau has failed to diversify its economy, Ng sees signs of progress in the city's growing exhibition industry and says she has found new opportunities in cultural and creative activities.

    Enid Ieong said she is bored by the city's limited career and leisure choices and wants to join her boyfriend in Hong Kong. She dreams of living in Sai Kung, Hong Kong, an area known for its scenic beauty and beaches.

    Ieong mocked the annual cash handout to compensate for what she called the psychological damage of living in a gaming center.

    “I feel like I was born into a grand mansion, but I'm only responsible for sweeping the floor,” she said.