Pursuant to an agreement signed by China and Portugal on 13 April 1987, Macau became the Macau Special Administrative Region (SAR) of China on 20 December 1999. In this agreement, China promised that, under its "one country, two systems" formula, China's socialist economic system would not be practiced in Macau, and that Macau would enjoy a high degree of autonomy in all matters except foreign and defense affairs for the next 50 years.

Macau's legislators have used the opportunity to create an economy which has enjoyed strong growth in recent years, largely on the back of its expanding tourism and gaming sectors. Since opening up its locally-controlled casino industry to foreign competition in 2001, the territory has attracted tens of billions of dollars in foreign investment that have helped transform it into the world's largest gaming center. In 2006, Macau's gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for 75% of total government revenue. The expanding casino sector, and China's decision beginning in 2002 to relax travel restrictions, have re energized Macau's tourism industry, which saw total visitors grow to 27 million in 2007, up 62% in three years.

Property Market Overview

Despite the slowdown in the number of residential sales transactions in 3Q2007, Macau's overall residential market experienced significant growth in 2007 owing to rising personal incomes, falling interest rates and accelerating inflation. According to Colliers International, for the first eleven months of 2007, the number of residential transactions recorded a total of 19,946, which already surpassed the level of 2006's total (17,175 units). The average residential transacted price increased to 21.2 per cent year-to-year to an average of US$1,714.50 per sqm of usable area in 3Q2007. This was mainly attributable to the strong performance of the high-end residential sector.

The rise in interest has been attributed in part to the arrival of a wave of international hotel residential brands such as the Venetian Macau, MGM Grand Macau, Grand Lisboa and Crown Macau last year. The arrival of such prominent players is going a long way towards strengthening the island's position as a world-class tourist destination.

Although the tourism industry has been slowing somewhat elsewhere in Asia, some 27 million people had visited by the end of last year; a year-on-year growth rate of 22.8 per cent. The rising number of visitors as well as increased spending by residents drove retail sales up 33.2 per cent last year and there was a 9.4 per cent year-on-year growth for private consumption expenditure in last year's third quarter.

Colliers was bullish in its predictions for Macau's residential property market in the years to come. In a recent report the group said sustained low interest rates of about 3 per cent and accelerating inflation, together with strong economic fundamentals, would help trigger stronger demand for residential properties.

Hotel occupancy rates have remained high, and there are a number of high-profile hotel-casino developments scheduled to open in the coming months, namely, the Four Seasons, Sheraton Macau, Shangri-La and the Traders.

"Macau enjoyed almost 30 per cent growth in 2007 as a gaming and entertainment hub," said the Colliers report. "Gaming revenue increased by 45.7 per cent year on year to more than 24.9 million pataca [$3.43 million] in the fourth quarter 2007, fetching a total of 83.8 billion pataca in 2007."

Essential information

Location
Macau is one of the two special administrative regions of the People's Republic of China, which lies on the western side of the Pearl River Delta, bordering Guangdong province in the north and facing the South China Sea in the east and south.

Area
Total: 28.2 sq km
Land: 28.2 sq km
Water: 0 sq km

Population
545,674 (July 2008 est.)

Language
Cantonese is far and away the most prevalent language with 85.7 per cent of Macau inhabitants speaking it. There are also Hokkien, Mandarin and other Chinese dialects spoken while a significant number, particularly those in tourist areas, have a good standard of English.

Religion
Half of Macau's population is Buddhist while some 15 per cent are Roman Catholic. The remainder, including those with 'no' religion make up the remaining 35 per cent.

Currency/Money
The pataca (code: MOP) is the currency of Macau. The abbreviation MOP$ is commonly used.

Climate
Macau has a humid subtropical climate, with average humidity between 75 and 90 per cent. Seasonal climate is greatly influenced by the monsoons and therefore temperature difference between summer and winter is significant. The average annual temperature of Macau is 22.3 ?C. July is the warmest month with an average temperature of 28.6 ?C (83.5 ?F). The coolest month is January, with an average temperature of 14.5 ?C.

International dialling code
+853

Capital
N/A

Electricity
220V, AC 50 Hz.

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History

Colonised by the Portuguese in the 16th century, Macau was the first European settlement in the Far East. However, the Portuguese position in Macau was consistently precarious over the following centuries and it was not until the 1848s that pressure for self-administration was achieved.

After the establishment of the People's Republic of China in 1949, the Beijing government declared the Sino-Portuguese treaty which enshrined Macau's status as unequal, but postponed its renegotiation. However, when a leftist military government swept to power in Portugal in a 1974 coup, it immediately sought to relinquish all overseas possessions. Two years later Lisbon redefined Macau as a 'Chinese territory under Portuguese administration,' and granted significant administrative, financial and economic autonomy. Negotiations between the Chinese and Portuguese governments brought about a treaty in 1987 known as the Sino-Portuguese Joint Declaration, which led to the Chinese government assumed sovereignty over Macau in December 1999.

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Government

Under the principle of "one country, two systems", Macau enjoys a high degree of autonomy in all areas except in defence and foreign affairs. Macau officials, rather than PRC officials, run Macau through the exercise of separate executive, legislative, and judicial powers, as well as the right to final adjudication. Macau maintains its own separate currency, customs territory, immigration and border controls, and police force.

The Sino-Portuguese Joint Declaration and the Basic Law, Macau's constitution promulgated by China's National People's Congress in 1993, specify that Macau's social and economic system, lifestyle, rights, and freedoms are to remain unchanged for at least 50 years after the transfer of sovereignty to China in 1999.

Economy

Macau's economy has enjoyed strong growth in recent years on the back of its expanding tourism and gaming sectors. Since opening up its locally-controlled casino industry to foreign competition in 2001, the territory has attracted tens of billions of dollars in foreign investment that have helped transform it into the world's largest gaming center. In 2006, Macau's gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for 75% of total government revenue. The expanding casino sector, and China's decision beginning in 2002 to relax travel restrictions, have re energized Macau's tourism industry, which saw total visitors grow to 27 million in 2007, up 62% in three years.

Macau also serves as an offshore financial centre, a tax haven, and a free port with no foreign exchange control regimes.

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Visas

For many passports including those of most Western countries, a Macau visa in advance is not needed. Depending on your nationality, a 30 or 90 day entry permit is usually issued for free on entry. For those requiring a visa, they have to be obtained from a Chinese embassy or consulate, and applied for separately from the mainland Chinese one.

Macau has a separate immigration regime from mainland China and anyone going to Macau from the mainland would be deemed as leaving China. If you want to re-enter China from Macau, you'll have to apply for another Chinese visa unless your earlier one is a multiple entry visa.

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Healthcare

Macau is served by one major public hospital, the Hospital Conde S. Janu?rio, and one major private hospital, the Hospital Kiang Wu, both located in Macau Peninsula, as well as a university hospital called Macau University of Science and Technology Hospital in Cotai. In addition to hospitals, Macau also has numerous health centres providing free basic medical care to residents. Consultation in traditional Chinese medicine is also available. The threat from SARS has largely abated, although there have been some cases of Dengue fever in recent years. The government has pro-actively sprayed insecticide in areas where there is the potential of mosquito breeding, so this risk is largely contained. However it is best to avoid being bitten by using mosquito repellent and/or wearing long clothing, especially at dusk.

Travel

For many years, the usual way to get to Macau was to fly into Hong Kong and take the ferry across to Macau. Today, Macau is becoming a low-cost airline hub, so one might fly to Macau to reach Hong Kong. Macau International Airport (MFM) is off the shore of Taipa Island.

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