Macau’s Monetary Authority said the devaluation of the Chinese Renminbi would undermine the city’s export competitiveness and tourism industry in the short term but would not affect the diversification developments of local industries.
“Tourism is the dominant sector of the economy and the Mainland is the top visitor-generating area for the SAR, accounting for over half of the SAR’s visitor arrivals. Hence, the weakening of the RMB might reduce the attractiveness of the SAR as a tourism destination for Mainland visitors,” the authority said in a statement.
Tourism and retail businesses would be adversely affected in the short term, the authority said.
“However, the current devaluation is still mild compared to the revaluation in the past few years. The SAR’s development towards a World Tourism and Leisure Centre through diversifications in industrial structure and visitor sources remains intact.”
As most food products in Macau are imported from the Mainland the weakening of the RMB would reduce such import prices.