Macau, which overtook Las Vegas as the world's largest gambling center nearly 20 years ago, is now striving to become a major center for medical tourism.
China's special administrative region opened a so-called resort hospital this week offering luxury medical services including health check-ups, advanced scans and cosmetic surgeries.
This shows that Beijing has stepped up its push for a more diversified economy.
Macau's casinos have been forced to close during the Covid-19 pandemic, with revenue plummeting. While the city's economy has recovered, officials are working to shift it away from gambling and toward industries such as health care, technology and events.
The area has long capitalized on its history as a gambling center, attracting tourists from mainland China, Hong Kong and other parts of Asia.
iRad Hospital, the private medical group behind the medical resort, estimates that it receives close to 40 million visitors a year. It hopes the availability of care will mean people will stay longer and spend more.
The facility is located in Studio City, a Hollywood-themed casino and entertainment resort owned by a Hong Kong group.
Macau's gaming boom began in the early 2000s, when authorities opened its gaming market to global casino operators shortly after the former Portuguese colony returned to Chinese control in 1999.
Macau has been trying to expand its economy beyond entertainment since gaming revenue surpassed that of Las Vegas.
Gambling-related taxes still account for the majority of government revenue.
Pressure to diversify the economy is likely to come from the top – Chinese leader Xi Jinping stressed the need for “economic diversification” and “internationally competitive emerging industries” during a visit in late 2024.
Unlike Hong Kong, Macau has a smoother relationship with the Chinese Communist Party. Hong Kong has launched a prominent pro-democracy movement challenging Beijing's rule.
But that has changed recently, with observers citing more evidence that Beijing is trying to control Macau – and recent legislative polls have shown lower turnout after several candidates were disqualified under new laws.
In early 2023, one of the city's biggest gambling tycoons was sentenced to 18 years in prison on organized crime and other charges. A few months later, a new security law targeting foreign interference and opposition to Beijing came into effect.
The gambling hub's flashy displays of wealth and its image as a playground for the wealthy appear to trouble the Communist Party — especially as Xi Jinping seeks to crack down on the phenomenon on the mainland and encourage “shared prosperity.”
That's why Beijing has been pushing Macau's economy away from gambling.
Medical tourism appears to have emerged as a potential alternative, given that Asia has long been a major hub for medical tourism, with wealthy patients traveling to South Korea for cosmetic surgery and Singapore for advanced treatments.
India is also a popular destination for medical tourists, offering cheaper treatments compared to Western countries.
According to market estimates, the global medical tourism industry is worth tens of billions of dollars and is expected to grow significantly over the next decade.