Monaco wants to expand ties with Macau in culture, entertainment, and exhibitions. The principality is also keen on wooing wealthy families and investors from Macau and the GBA to establish a foothold in Europe. The city-state’s Secretary of Attractiveness and the ambassador to China see plenty of potential for future partnerships between ‘tiny’ Monaco and ‘small’ Macau.
By José Carlos Matias
Photos by Oswald Vas
What do Macau and Monaco have in common? That doesn’t come about as too challenging a question. Both are small-sized, with big neighbours next door, are famous for their casinos, have a flagship Grand Prix on a street circuit, and rank among the world’s top jurisdictions when it comes to GDP per capita. There’s something else: a need for economic diversification.
In 2015, an investment brought the two cities closer when Macau gaming and integrated resorts operator Galaxy Entertainment Group (GEG) became a shareholder of Société Anonyme des Bains de Mer, the company that owns and manages the renowned Monte Carlo Casino, Opéra de Monte Carlo, and Hôtel de Paris, among other venues in the Principality of Monaco.
Monaco’s Secretary of Attractiveness, Development, and Digital Transformation, Frédéric Genta, and the principality’s Ambassador to China, Marie-Pascale Boisson, sat with Macau Business during their stay in the SAR in April at the invitation of GEG. They both held several meetings in the city, including with local authorities.
“Macau and Monaco, we both have strong brands to make our countries shine out of our small frontiers both using digital platforms” – Frédéric Genta
Culture and lifestyle link
Culture, exhibitions, and entertainment emerged as areas to forge ties, as Macau doubles down on the “tourism+” strategy. “We have to collaborate more on culture, sports, entertainment, and exhibitions. We can bring more Asian culture to Europe and more European Culture to Asia,” Frédéric Genta told Macau Business. As Monaco and the People’s Republic of China celebrate the 30th anniversary of the establishment of diplomatic relations in 2025, the coming year may bring related cultural events to the SAR. “We will be holding high-level celebrations and Macau will also be part of it,” said Ambassador Marie-Pascale Boisson, recalling the “GRACE KELLY: From Hollywood to Monaco – Artists’ Tributes” hosted by Galaxy in 2019 in a joint initiative of the Macau SAR Government, GEG Foundation, and Grimaldi Forum Monaco. Back then Princess Charlene of Monaco was in Macau for the opening of the exhibition.
The two cities have a lot to offer and learn from each other, Ms. Boisson emphasises. “In Monaco, we have our own lifestyle, elegance, charity events, and glamorous culture.” This can be brought to Macau while the SAR can share its accumulated professionalism and modernity in integrated resorts development and tourism, she adds. Secretary Genta agrees and suggests that it could be interesting to bring charming musical acts and ballet from Monaco to town or sports teams such as the principality’s highly regarded football team AS Monaco, which competes in the top tier of French football. “I anticipate more and more partnerships and exchanges with Macau and the Greater Bay Area,” Mr. Genta added, stressing the “very special relationship” between the principality and China, as shown by Xi Jinping’s visit to Monaco in 2019 and when Prince Albert II was in Beijing for the 2022 Winter Olympics. High technology is another key area developed in bilateral relations; in September 2018, Monaco Telecom and Huawei signed an agreement that resulted in Monaco being the first European country to develop 5G.
“We have to collaborate more on culture, sports, entertainment, and exhibitions. We can bring more Asian culture to Europe and more European Culture to Asia,” Marie-Pascale Boisson
Digital extension
Digitalization has been at the forefront of the city-state’s modernization strategy as it allows it to break free from its 2.08 square kilometre area (less than one-tenth of Macau’s area). When a place is this small, “you effectively need to extend your capacities and opportunities,” he explains. That’s why the Extended Monaco program aimed at accelerating the digital transformation of the principality was launched, something that can be a pillar for cooperation with the SAR, he believes. “Macau and Monaco, we both have strong brands to make our countries shine out of our small frontiers both using digital platforms and sharing culture all over the world.” On the business front, the Monegasque authorities are keen on deepening ties and promoting exchanges with Macau on core economic activities such as finance and gambling.
‘Second base’
The two cities grapple with issues of being too dependent on specific sectors. While gaming accounted for half of Macau’s economic gross added value (pre-pandemic), Monaco is mostly reliant on real estate and finance, which account for 20 and 17 percent of the GDP respectively. “We need to diversify our revenues,” Frederic Genta recognises, adding: “We are lucky enough to be in a digital time where physical size doesn’t matter as much as before as we can grow our brand, business in digital without needing too much land.”
The principality, a very-low tax jurisdiction which is known for not collecting personal income tax or capital gains taxes, is also promoting itself as a potential second base for family offices and investors from Macau and the Greater Bay Area to give them a foothold in Europe. “They may be interested in establishing a subsidiary in Europe based in Monaco and work with a Monegasque bank.”
“These kinds of things are really tangible,” Mr. Genta concluded.
