A new 10-week consumption campaign will kick off in Macao on 24 March, with the government pledging to spend about 295 million patacas (US$36.86 million), according to multiple media reports.
Coinciding with what tends to be a post-Lunar New Year lull in shopping, the scheme – announced on Saturday – aims to boost spending through a rewards system involving coupons worth between 10 and 200 patacas.
Director of the Economic and Technological Development Bureau, Yau Yun Wah, said he expected the campaign would generate about 1.1 billion patacas in consumption.
“To stabilise confidence in the market, the government has decided to organise the campaign with hopes to promote community consumption in the short term, as well as to support small and medium-sized businesses and the community,” he said.
[See more: Macao’s retail sector is in trouble. How long can small businesses hold out?]
Yau conceded that while Macao’s consumer market has maintained a “positive trend,” the SAR’s “community consumption landscape has changed” over the past year or so.
The director was likely referring to the flow of Macao residents heading north into the mainland city of Zhuhai to take advantage of its cheaper prices and greater variety. The trend has been accompanied by a rise in online shopping via the likes of Taobao. Both have been bad news for local retailers and restaurants.
The authorities will also introduce a special 300-pataca consumption voucher for the elderly, available via their Macau Pass. The voucher can be used at more than 100 participating merchants across the city.
A three month-long consumption campaign that took place in the fourth quarter of last year was responsible for over 270 million patacas’ worth of spending in its first four weeks.
