The Macao government is to implement a four-pronged approach to support businesses in the ZAPE district. This comes after casino operators, SJM, Galaxy and Melco, announced last week that they would be collectively closing down 11 of their third-party satellite casinos by the year’s end, a move that is forecasted to negatively impact surrounding businesses.
Merchants in the ZAPE area are expected to be particularly hit hard due to the high concentration of satellite casinos in the area – among them Casa Real Casino, Fortuna, Kam Pek Paradise, Landmark, Le Royal Arc and Waldo.
During an interview with multiple media outlets yesterday, Yau Yun Wah, the director of the Economic and Technological Development Bureau (known by its Portuguese initials DSEDT), said that one of the supportive measures would include the setting up of installations based on an internationally-known franchise in the area.
The project would be akin to similar events such as the Pop Mart Macao Citywalk and the Flora Fête with Sanrio characters, which are aimed at attracting tourists and boosting consumption in different areas.
The DSEDT head revealed that discussions with the franchise owner were currently underway, with the installations “expected to be released between mid- to late-November and into next year.”
A second measure to boost business in ZAPE will involve collaborating with a major mainland ticketing platform.
“In the future, we will distribute gift packages to concert-goers through this platform, including the tickets to the Grand Prix Museum in ZAPE and some coupons that can be used in the NAPE district,” Yau said.
[See more: Macao government pledges to safeguard the rights of satellite casino workers]
The final two strategies include guiding and encouraging local chambers and commerce and community organisations to organise even more events, in addition to coordinating with relevant government departments to upgrade and improve the area.
Reactions to the government’s proposed measures have been mixed, with one local retailer telling TDM that gamblers are the main driving force of luxury consumption in Macao rather than tourists who visit the city to take photos.
Meanwhile, a restaurant operator said she was “definitely” supportive of the initiatives, as it would attract customers to the area. A pharmacy store owner, on the other hand, expressed hopes that the authorities can organise a large-scale event similar to the Macao International Food Festival to draw greater foot traffic.
The ZAPE district’s real estate is also expected to be negatively affected by the closure of satellite casinos. According to the chairman of the Macau General Association of Real Estate, Chong Sio Kin, termination and cancellation of leases have been on the rise in the district since the announcement.
The realtor expressed hopes that the SAR government can enact policies to boost the market and restore the sector and consumers’ confidence.
