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Macau’s $12.4 million air ticket subsidy sees a tepid response

Macau’s tourism office sets a goal to draw 3 million international visitors this year by investing MOP 100 million ($12.4 million) to subsidize 100,000 international air tickets. However, the industry had mixed reactions.

Macau not well-prepared to receive influx of visitors, says insider
Ben Leng, head of the Association of Industry and Commerce Federations of Macau Tourism

Speaking to AGB, the head of the Association of Industry and Commerce Federations of Macau Tourism said that the pecuniary subsidies are not sustainable as the total number of international visitors depends on flight capacity and the channel through which Macau brings the visitors.

“International visitors normally come to Macau by air or by ferry. If we don’t secure a certain frequency and number of flights, international visitor arrivals will be restrained,” noted Ben Leng.

Leng pointed out that for consistency, Macau needs to attract more Chinese living in the Greater Bay Area to use Macau Airport to travel abroad. In the same way, the flights will naturally bring more international visitors.

Macau Visitor Arrivals 2023
Visitor Arrivals 2023 MGTO

At the same time, Leng also suggests that Macau has the advantage of “taking” international visitors from Hong Kong, as Hong Kong Airport has one of the biggest passenger capacities in the world, and half of the passengers are foreigners. In this way, “if Macau can bring 5 percent of visitors from Hong Kong, it is much enough,” he said.

$29.2 million budget

Maria Helena de Senna Fernandes

Macau Government Tourism Office (MGTO) director Maria Helena de Senna Fernandes said that the Macau government has allocated a budget of MOP 235 million ($29.2 million) for expanding Macau’s international visitor market this year (2024).

MGTO is collaborating with Macau’s flagship company, Air Macau, to release those low-price tickets. According to Fernandes, this initiative covers all international destinations serviced by Macau Airlines, excluding mainland China and Taiwan, and offers varying degrees of discounts.

MGTO also reveals a plan to promote Macau’s tourism on cruises in Hong Kong. Fernandes said that although the number of cruises that embark in Hong Kong is not large, she believes that it is still an opportunity to promote Macau to the international market.

Regional competitors

Thailand and Malaysia already have a visa-free policy for Chinese tourists, and the same measure is going to apply to Singapore. Under these circumstances, Chinese tourists now have more choices for outbound travel, and those destinations will be competitors.

Macau's $12.4 million air ticket subsidy sees a tepid response
Andy Wu, President of Macau Tourism Association

Therefore, Andy Wu, the president of the Macau Tourism Industry Association, said that he is not worried about the impact.

“This may be positive news for Macau, as the city has never been a long-stay travel destination.”

Wu notes that the average stay has never surpassed 2 days in Macau, so if more Chinese visitors choose Macau to fly to Malaysia, Singapore, or Thailand, it may be beneficial to Macau.

At the same time, he indicates that the recovery of international flights worldwide will be a beneficial factor that will contribute to Macau’s international visitor arrivals. Meanwhile, “all six gaming concessionaires will focus on the international market, which will also help.”

Ben Leng has a similar opinion, noting that Macau’s airport has some advantages compared to Hong Kong and Guangzhou. Residents from some Greater Bay Area cities near Macau are using Macau Airport.

According to the current policy, Chinese citizens who travel to foreign countries via Macau are granted a seven-day visa on arrival. This policy also paved the way for Chinese tourists.

In 2023, Macau hosted 1.46 million international visitors, representing approximately 48 percent of the levels recorded in 2019. Official data indicates that Macau had received nearly 3.07 million overseas visitors in 2019.

Macau,visitor-arrivals,2019
Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

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