Alexis Tam explains why Uber deemed illegal

Alexis Tam

The Secretary for Social Affairs and Culture, Alexis Tam, declared last Saturday that he does “not agree with the provision of transport services in private vehicles by Uber”, stating that this activity “violates the law and, therefore, is illegal.”
The secretary added that the government would continue to oppose these activities, further stating that “the tourism sector is in line with this decision.”
In a public statement, made as he was questioned by media, Mr Tam said, “The Macau Government Tourist Office recently released a statement informing travel agencies informing agencies that the provision of transport services with private vehicles is illegal.” The same official recalled that in last week’s meeting of the Council for Tourism Development, the council had already issued a warning to its members, which was extended to the whole of the tourism sector. This advice was centered on the fact that “the provision of such services is illegal and that the government will tackle this type of action,” stating once more that “the position of both the government and the tourism sector in relation to the services provided by Uber is unanimous.”
Mr Tam also noted that “the territory has its own legal and public transport systems.” He does not wish to see the tourism sector capitalizing on these private vehicle transport services because “vehicles registered in the tourism sector are to serve only tourists and not the population in general.”  The Secretary added that the tourism sector aims to maintain a cooperative relationship with the government, saying that the authorities will fully support the sector in their difficulties, and, accordingly, that the provision of transport services in private vehicles should not be made by travel agencies.
According to several media reports in Hong Kong, the big hurdle that Uber has faced in gaining traction in the neighboring territory is mainly due to the pressure from the taxi industry. The taxi industry in Hong Kong is a highly speculative sector due to the fact that a taxi license can reach an open market value of about HKD7 million. In this sense, the introduction of a service like Uber poses serious threats both directly to the taxi industry and indirectly to the government department that manages it.