The post-pandemic recovery of Macau in regards to tourism and gaming has seen a slowdown, and expectations for financial revenue for the current year are not as optimistic as before, warned Macau’s Chief Executive in his first Policy Address.
On Monday, Sam Hou Fai noted that Macau has a micro-economy that is strongly outward-facing and is not immune to the current problems of unilateralism and protectionism occurring in global markets.
The top official says that Macau cannot underestimate the eventual threats and challenges and should be conscious of risks and be on alert to be prepared for any potential threats.
While most of his address was focused on social welfare issues, infrastructure, public administration, growth, education and other factors, the official did underline the importance of the tourism and leisure sector for Macau.
Diversification
In particular focus was the diversification of Macau’s economy, including the 1 + 4 idea, with tourism and gaming making up the primary contributor, supported by other nascent industries.
This includes the adequate investment in non-gaming elements, with the official making specific mention that the government would improve oversight of gaming operators to ensure that they are complying with the specifics set out within their gaming concession contracts.
Aside from current projects, the Chief Executive indicated authorities should orient the concessionaires to invest more resources in industrial projects in Macau and Hengqin, establish evaluative indicators of the efficiency of non-gaming investments, and periodically review the overall situation of their compliance with their concession contracts.
Working together
While the government’s non-gaming focus in regards to gaming operators under the previous administration was to largely require these operators to assume the mantle of Macau’s diversification efforts, the new Chief Executive also indicated that Macau is partnering with the concessionaires in attracting more foreign tourists.
The official highlighted that in order to improve Macau’s standing as an international tourism and leisure center, it would be actively exploring the markets of Northeast Asia Southeast Asia, South Asia and South America. The official noted that economic, commercial, touristic, and cultural delegations of Macau have been created in Southeast and Northeast Asia, and together with the gaming concessionaires they are reinforcing the promotion of Macau to international markets.
This includes expanding flights from the Macau International Airport to regions which do not have direct links to Macau via other regional hubs. In addition, the government plans to continue promotional tourist offerings for foreign visitors via airplane ticket discounts and cross-border transport benefits.
Authorities are also focusing on creating regional tourism, under the moniker “Tourism+”, via links with Hengqin and cities within the greater Bay Area, as well as Hong Kong, for multi-destination tourism.
In regards to tourism promotion, the official stated that Macau needs to attract more young tourists by creating international events of large scale and partnering with digital influencers, claiming Macau should create the image of an “international city of digital influencers”.
On a separate note, Sam Hou Fai also indicated that contingency plans and coordination for the end of the transition period for Macau’s satellite casinos will happen in the near future. The period ends on December 31st, with many satellite operators worried about the future of their businesses.
Overall, the executive assured that Macau has strong fiscal reserves, as evidenced by the continuation of economic stimulus and social welfare packages and even the increase of the amounts for some of these. The official assures that Macau will continue to prosper and grow, despite mentioning the need to focus on maintaining spending within defined limits and ensuring GDP goals.
