Macau Rapid Economic Growth: Supporting the Transport Sector and Stimulating Growth in the Region - Research Paper Example

Macau has a well-developed transportation network, it is predominantly obsolete and incapable of accommodating the current high volumes of traffic experienced in the sector as it was established by the colonial Portuguese administrators years ago hence is incapable of sustaining the regions current rapid expansion. The territory’s main economic activity revolves around its tourism industry fuelled by the gambling casinos that are the mainstay of the economy. Macau was previously a major exporter of textile and garments but its dependency on imports has rendered it vulnerable to various global economic downturns crisis including the Asian financial crisis in the late 1990s and the current prevailing global financial recession.

Nevertheless, the territory has enjoyed sustained economic growth far outshining its larger neighbours with annual growth rates ranging from 13 to 16 per cent in the last decade. Macau’s major weakness is found in the territory’s transport infrastructure that seems unable to keep up with the archipelagos growth pattern. Visitors to the region are transported via ferries, hydrofoils, and helicopters from Hong Kong, or by taxis or buses from the mainland. The territory’s only international airport is located on the reclaimed land on Taipa Island with a capacity of six million passengers and a cargo load of 180 thousand metric tonnes annually, however, the airport remains largely underutilised as the majority of international travellers use Hong Kong’s airports.