The SAR is expecting to welcome as many as 39 million visitors this year, but the surge may not necessarily translate into more visitor spending, according to the president of the Macau Economic Association (MEA), Lao Pun Lap.
In a recent Macao Daily News report, Lao noted that visits were mainly made during holiday periods and weekends, leaving “comparatively fewer” arrivals, and a shortfall in business, at other times.
The economist also pointed out that visitor spending per capita was relatively weak. He noted that visitors attending concerts and other events are now choosing to return home on the same day rather than stay overnight – an option made easier by improvements in the city’s transport links with the Chinese mainland
Shifts in consumption patterns are having an impact as well, with the expert noting that there had been a gradual decrease in the number of visitors looking to splurge on luxury items.
[See more: Will Macao see 39 million visitors in 2025?]
As a result, Lao pointed out that small and medium sized enterprises (SMEs) in Macao are facing an uphill battle and typically unable to make up the shortfall with local customers, since Macao residents now greatly prefer shopping on the mainland, where goods are cheaper.
The MEA president called on the government to support SMEs by helping them to upgrade or change their business models, as well as improve the quality of their products and services.
Other recommendations included assisting SMEs with renovations, making retail environments more appealing to visitors.
Lao also suggested the holding of more promotional events to lure tourists to parts of Macao that are off the beaten path, distributing visitor spending more equitably.
