Macau: gambling on its future?

Abstract Macau is Portugal's last remaining Asian territory. Situated opposite Hong Kong at the mouth of the Pearl River delta, the enclave will be returned to Chinese administration in 1999. Since the sovereignty agreement was signed in 1987, Macau has been changing rapidly. An international airport will open in 1996 and by the end of the decade the enclave will have expanded its land size by 25%. Until now, Macau's tourism industry has been linked with its legalized gambling industry. The international airport and the economic growth of the region have created new opportunities for the tourism industry in this tiny enclave. However, with China's aversion to legalized gambling, and with various other contentious issues leading up to the handover of Macau, a question mark now hangs over the future direction of its tourism industry.