Macau’s reputation never entirely recovered from a famous exchange of dialogue between two characters in the 1948 Hollywood classic The Lady from Shanghai. When Elsa Bannister (Rita Hayworth) reveals that she was born in Chifu, on the Chinese mainland, Michael O’Hara (Orson Welles) dismisses it as “the second wickedest city on earth.” What, she asks, is the first? He replies, as if stating the obvious: “Macau.”

Although there was a certain amount of artistic license in that declaration, it is true that for much of its history this former Portuguese colony has profited from commodities (especially opium) and activities (especially gambling) outlawed elsewhere. But thanks to this willingness to explore alternative economies, Macau — also known as Macao — has flourished through the centuries.

This improbably successful outpost sits on a peninsula and two small islands that add up to a total area of just nine square miles. With a population of 470,000 crammed into this confined space, Macau is one of the most densely crowded places in the world.

The enduring symbol of Macau, and its most popular historical attraction, is the stone façade of Igreja de São Paulo, or St. Paul’s Church. It is a fitting emblem, for much of this city is a façade: Many of the streets and squares are strongly European, yet the population is almost entirely Chinese. The church of São Paulo, built in 1602, is one of the greatest architectural legacies of Portugal’s 442-year rule. Most of the building was destroyed by an accidental fire in 1835; all that remains is the front wall and the impressive flight of footworn steps leading up to it.

While São Paulo is the embodiment of Macau’s Catholic heritage, Kuan Yin Temple (open 7 a.m. to 6 p.m. daily), located a short walk north of the city center, is the most significant Buddhist site. Dedicated to the goddess of mercy, the present building dates to 1627 and incorporates a peaceful terraced garden. Within the garden lies the old stone slab on which the first treaty between China and the United States was signed, in 1844.

The pillars of Portugal’s empire were the churches and forts. Overlooking the church of São Paulo is Macau’s most formidable bastion, Fortaleza do Monte (open 6 a.m. to 7 p.m. May through September, and 7 a.m. to 6 p.m. October through April). The fort’s ancient walls enfold a leafy public park. From the battlements there are superb views of the city and the Chinese hinterland. Several old cannons point out at the view, providing an interesting foreground for snapshots of the city.

In 1999, Portugal formally handed Macau over to China, and the territory became a Special Administrative Region of the People’s Republic. In effect, this status (which Macau shares with its near neighbor, the former British colony of Hong Kong) provides it with political and economic autonomy — the principle of “one country, two systems.” Under the leadership of its chief executive, businessman Edmund Ho Hau Wah, Macau has since seen its per-capita gross national income reach $14,420, in contrast to a GNI of just $840 in mainland China. Exports, especially of clothing and textiles, have contributed to this success, but the mainstay remains the gaming industry, for Macau is the only place in China where gambling is legal. It has long attracted high rollers from Hong Kong, Europe and America, but now it is also welcoming large numbers of gambling tourists from Taiwan and the major Chinese cities.

This influx has been aided by the 1995 opening of Macau International Airport (MFM), which was constructed on a man-made island on the eastern side of the territory, and operates round the clock. In its first decade of operations, the airport has experienced extraordinarily rapid growth in both passengers and cargo. Before it opened, most tourists arrived in Macau by ferry or jetfoil from Hong Kong, an hour away. Many stayed at the sumptuous Lisboa Hotel and Casino (http://www.hotelisboa.com), with its 1,000 guestrooms; 24-hour gambling halls; giant auditorium staging the Crazy Paris Show, featuring international showgirls; and circular roofs designed to mimic roulette wheels. The Lisboa stands as testament to the glamorous ’60s and ’70s, when Macau cast itself as the “Monte Carlo of the Orient.”

As recently as 2002, the territory’s gaming industry was controlled by one man, Stanley Ho, a Hong Kong–based tycoon. Ho’s monopoly was ended by legislation allowing international companies to enter the market for the first time. As a result, Macau is currently in the grip of the biggest economic boom in its history. In 2004, visitor numbers reached 16 million, and this year the gaming revenues are expected to exceed $5 billion, making Macau the biggest gambling market in the world — outranking even Las Vegas.

Macau’s phenomenal rate of growth has not gone unnoticed in Nevada. One of the biggest entrants into Macau’s newly liberalized gaming market is the Las Vegas Sands Corp., the prime force behind one of the world’s most ambitious tourism developments, in an area of the territory known as the Cotai Strip. The Cotai project is superlative in every respect. The first phase, set to open in 2007, features the $1.8 billion Venetian Macau Resort. The following year will see the unveiling of the $1 billion City of Dreams entertainment complex, which will include an underwater casino.

A host of major hotel chains, including Marriott International, Four Seasons Hotels and Resorts, Hilton Hotels, InterContinental, Dorsett Hotel Group, and Starwood Hotel and Resorts Worldwide, are also involved in the Cotai development. Meanwhile, in downtown Macau the 600-room MGM Grand Paradise is scheduled to open in the second half of 2007.

The scale of what is proposed for Macau is summed up by William P. Weidner, CEO of the Las Vegas Sands Corp. “It took 75 years for Las Vegas to emerge as an international destination. Our intention is to replicate that feat in less than three years.”

If the Las Vegas gaming corporations are willing to stake their money here, you can be sure a bright future for Macau is a good bet.

Entry Requirements

U.S. citizens must have a valid passport to enter Macau. Visas are not necessary for stays of less than 30 days. For the latest information on entry requirements, visit the Macau Immigration Department’s Web site at http://www.dsi.gov.mo.

More Information

Embassy of the People’s Republic of China
2201 Wisconsin Ave. N.W.
Room 110
Washington, DC 20007
tel 202 338 6688
fax 202 588 9760
http://www.china-embassy.org

Macau Trade and Investment Promotion Institute
918 Avenida de Amizade
Edificio World Trade Center
1-4 Andar, Macau
tel 853 710300, fax 853 590309
http://www.ipim.gov.mo

Macau Chamber of Commerce
175 Rua de Xiangai
Edificio ACM
5 Andar, Macau
tel 853 576833, fax 853 594513
http://www.acm.org.mo/en