Page 372 - 2017 White Paper
P. 372
7 White Paper on the Business Environment in China
Macau’s currency, the pataca (MOP), is closely tied to of the One Country, Two Systems policy, the central
the Hong Kong dollar, which is freely accepted in Macau. government is trying to integrate the economies of
Hong Kong’s links with Macau’s gambling industry are Hong Kong, Macau and Mainland China. Hengqin is
extensive, especially through three of the six companies directly across the water from Macau, and as such is a
with gaming licenses in Macau: STDM, Galaxy, and pilot zone for integration. It has already attracted over
Melco. STDM’s gaming subsidiary, SJM, and Galaxy are 226.3 billion yuan (US$36.4 billion) in total investment.
listed on the Hong Kong Stock Exchange, as are two With professional zone management, as well as the most
other license holders, Wynn Macau and Las Vegas Sands’ preferential investment policies in South China, Hengqin
Macau operations. New Area offers appealing incentives to investors.
Having surpassed Las Vegas in gambling revenue, In March 2014, China issued a “Preferential Corporate
the city is now looking to broaden its economic base Income Tax Catalog” for Hengqin New Area, which
by keeping tourists in town for longer periods of time. identified five industries and 72 business categories,
While casino earnings constitute nearly half of Macau’s such as ocean-sourced pharmaceuticals and health care,
earnings, in Las Vegas they make up only about 25 for preferential tax treatment. While China’s standard
percent of tourist-related revenue, suggesting that rate of corporate income tax is 25 percent, eligible
tourists in Macau tend to stay for only a day or two, enterprises listed in the Catalog will be taxed at a
gambling and quickly leaving. The region is hoping to reduced 15 percent rate closer to corporate income tax
change that by cashing in on the lucrative convention levels in Hong Kong and Macau.
trade with new exhibition centers and significant growth
in the number of hotel rooms available. Infrastructure
The first exhibition to take advantage of the added Air
space was Mega Macau, the first-ever trade exhibition
of its kind in the SAR. Running between the two phases Macau is accessible by air from most major cities
of the Canton Fair in Guangzhou, the event was held in in Asia plus a number of domestic destinations. All
the Venetian Convention and Exhibition Center (part of passengers using the modern Macau International
the Venetian Macau mega resort complex and featuring Airport are subject to an airport tax and passenger tax.
100,000 square meters of conference and exhibition
space, 70,000 square meters of which is dedicated to Road
exhibitions and can accommodate up to 5,000 booths at
a time). Macau consists of a peninsula and the two islands of
Taipa and Coloane. Three bridges, the Nobre de Carvalho
Macau’s Closer Economic Partnership Arrangement Bridge, Friendship Bridge (Ponte da Amizade) and Sai
(CEPA) with Mainland China was signed on October Van Bridge, link the peninsula to Taipa. In addition, the
17, 2003 and came into effect on January 1, 2004. The two islands are linked by the six-lane 2.2 kilometer Taipa-
agreement offers Macau-made products tariff-free Coloane Causeway. Construction of the Hong-Kong-
access to the mainland. According to official statistics Zhuhai Macau Bridge began at the end of 2009 and is
issued by Macau Economic Services, the total product due to be completed by the end of 2016.
export value under CEPA reached MOP 744,739,630
from January 2004 to the end of September 2016. With Ports and Waterways
respect to trade in services, Macau Economic Services
has approved 611 “Macau Service Supplier” certificates, Macau Port includes an outer harbor for passenger
for companies. vessels to/from Hong Kong, as well as an inner port for
cargo. The Ka-Ho Harbor includes a fuel oil terminal and
Spotlight on Hengqin Island company-exclusive piers. There are regular ferries and
helicopters providing 24-hour service to Hong Kong.
Hengqin New Area, located in the Zhuhai Special Ferries also connect with the Shekou Port in Shenzhen.
Economic Zone and part of the Guangdong Free Trade
Zone, is only a stone’s throw away from Macau. As part
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Macau’s currency, the pataca (MOP), is closely tied to of the One Country, Two Systems policy, the central
the Hong Kong dollar, which is freely accepted in Macau. government is trying to integrate the economies of
Hong Kong’s links with Macau’s gambling industry are Hong Kong, Macau and Mainland China. Hengqin is
extensive, especially through three of the six companies directly across the water from Macau, and as such is a
with gaming licenses in Macau: STDM, Galaxy, and pilot zone for integration. It has already attracted over
Melco. STDM’s gaming subsidiary, SJM, and Galaxy are 226.3 billion yuan (US$36.4 billion) in total investment.
listed on the Hong Kong Stock Exchange, as are two With professional zone management, as well as the most
other license holders, Wynn Macau and Las Vegas Sands’ preferential investment policies in South China, Hengqin
Macau operations. New Area offers appealing incentives to investors.
Having surpassed Las Vegas in gambling revenue, In March 2014, China issued a “Preferential Corporate
the city is now looking to broaden its economic base Income Tax Catalog” for Hengqin New Area, which
by keeping tourists in town for longer periods of time. identified five industries and 72 business categories,
While casino earnings constitute nearly half of Macau’s such as ocean-sourced pharmaceuticals and health care,
earnings, in Las Vegas they make up only about 25 for preferential tax treatment. While China’s standard
percent of tourist-related revenue, suggesting that rate of corporate income tax is 25 percent, eligible
tourists in Macau tend to stay for only a day or two, enterprises listed in the Catalog will be taxed at a
gambling and quickly leaving. The region is hoping to reduced 15 percent rate closer to corporate income tax
change that by cashing in on the lucrative convention levels in Hong Kong and Macau.
trade with new exhibition centers and significant growth
in the number of hotel rooms available. Infrastructure
The first exhibition to take advantage of the added Air
space was Mega Macau, the first-ever trade exhibition
of its kind in the SAR. Running between the two phases Macau is accessible by air from most major cities
of the Canton Fair in Guangzhou, the event was held in in Asia plus a number of domestic destinations. All
the Venetian Convention and Exhibition Center (part of passengers using the modern Macau International
the Venetian Macau mega resort complex and featuring Airport are subject to an airport tax and passenger tax.
100,000 square meters of conference and exhibition
space, 70,000 square meters of which is dedicated to Road
exhibitions and can accommodate up to 5,000 booths at
a time). Macau consists of a peninsula and the two islands of
Taipa and Coloane. Three bridges, the Nobre de Carvalho
Macau’s Closer Economic Partnership Arrangement Bridge, Friendship Bridge (Ponte da Amizade) and Sai
(CEPA) with Mainland China was signed on October Van Bridge, link the peninsula to Taipa. In addition, the
17, 2003 and came into effect on January 1, 2004. The two islands are linked by the six-lane 2.2 kilometer Taipa-
agreement offers Macau-made products tariff-free Coloane Causeway. Construction of the Hong-Kong-
access to the mainland. According to official statistics Zhuhai Macau Bridge began at the end of 2009 and is
issued by Macau Economic Services, the total product due to be completed by the end of 2016.
export value under CEPA reached MOP 744,739,630
from January 2004 to the end of September 2016. With Ports and Waterways
respect to trade in services, Macau Economic Services
has approved 611 “Macau Service Supplier” certificates, Macau Port includes an outer harbor for passenger
for companies. vessels to/from Hong Kong, as well as an inner port for
cargo. The Ka-Ho Harbor includes a fuel oil terminal and
Spotlight on Hengqin Island company-exclusive piers. There are regular ferries and
helicopters providing 24-hour service to Hong Kong.
Hengqin New Area, located in the Zhuhai Special Ferries also connect with the Shekou Port in Shenzhen.
Economic Zone and part of the Guangdong Free Trade
Zone, is only a stone’s throw away from Macau. As part
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