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Many businesses in Macao are struggling as locals head north

Holidays like the recent Easter break are seeing a notable exodus, with residents flocking to cheaper shops and restaurants on the Chinese mainland.

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UPDATED: 03 Apr 2024, 3:34 pm

Businesses in the residential areas of Macao are experiencing poor sales as more local residents are choosing to spend their money in mainland China, while visitors are remaining exclusively in the city’s tourist districts.

That’s according to the deputy director-general of the Macao Catering Industry Association, Leong Ka Ion, who told TDM that increases in rent and the dearth of customers were all adding pressure to businesses in non-tourist areas. 

He stated that the recent wave of business closures was even more serious than during the pandemic, and noted that 30 to 40 percent of the restaurants approached by his organisation said they were considering closing. 

“We hope that the government can push forward with even more promotional measures that will allow small and medium sized businesses to continue operating with ease, in addition to enabling local residents to stay in Macao and spend,” he noted. 

[See more: Local businesses suffer as more residents choose to shop and eat on the mainland]

The poor business volume in the residential areas during the recent Easter Holiday period was also acknowledged by the director-general of the Industry and Commerce Association of Macau Northern District, Ma Kin Cheong, who said that the area was significantly impacted by its proximity to mainland China, which means that residents “can go outside [of Macao] to spend at practically no cost.” 

Some of the restaurants and local residents interviewed also made mention of the Northbound Travel for Macau Vehicles program, which has made it more convenient for residents to drive to the mainland, further reducing their need to spend locally.

In an effort to boost tourism in residential areas, the government has launched various initiatives, setting up installations in the Northern District and collaborating with casino operators to revitalise areas such as Barra.

In stark contrast to their residential counterparts, stores in the tourist districts that were interviewed by local media noted that they saw a decent amount of business over the Easter break. “It’s been very positive,” said the owner of Cathedral Café, Stephen Anderson. “Over the Easter period, we’ve [had] a very diverse crowd…which is good to see.”

UPDATED: 03 Apr 2024, 3:34 pm

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