As new consumption drive launches, a question emerges: time to make it permanent?

Yuki Lei

As a new round of Macau’s Community Consumption Rewards Program launches tomorrow, four years after similar pledges to boost consumer confidence first emerged, one must ask: if repeated local spending campaigns are truly as “positive” as authorities claim, should such initiatives become a permanent public-welfare fixture for Macau, much like the Wealth Partaking Scheme?

In 2022, as the COVID-19 pandemic came under control, the Economic and Technological Development Bureau (DSEDT) and the Macau Chinese Chamber of Commerce launched the first-ever “Citywide Consumer Carnival” – a large-scale consumer-promotion campaign aimed at driving post-pandemic recovery and boosting market sentiment.

The initiative underscored the goal of continuously stimulating residents’ willingness to spend, encouraging repeat purchases, and fostering a cycle of community consumption to strengthen confidence in the sustainable operation of businesses across sectors.

According to official data, the 20-week campaign, which ran into early 2023, generated cumulative secondary spending of MOP1.33 billion.

By 2024, the initiative – originally conceived as a pandemic-relief measure to ease financial pressures, boost local demand, and support recovery – returned under the banner of promoting the community economy, supporting local consumption, and revitalizing economic activity.

Now in its fifth round, the latest iteration of the program is set to begin tomorrow, Friday.

Yet four years on, residents’ willingness to spend and the economic vitality of local businesses do not appear to have improved in any meaningful way as a result of these repeated initiatives. Industry professionals across the catering and retail sectors are increasingly urging authorities to reduce operational burdens and help small and medium-sized enterprises weather the storm.

According to a survey conducted by the United Association of Food and Beverage Merchants of Macao between early January and early February this year, 60% of surveyed businesses reported that total revenue last year declined by an average of 10% to 30% compared to 2024. Among them, 68% were located in residential areas and 32% in tourist districts.

A further 25% of respondents reported no change in revenue. Despite the downturn, businesses generally support the continued rollout of consumer-incentive programs.

However, as the market enters each slack consumption season, the question remains: how long can the Community Consumption Rewards Program continue to play a meaningful supporting role?

In an effort to stimulate the local economy and boost market confidence during the traditional tourism off-season from April to June, authorities have adjusted the upcoming round of the program. Under the new arrangement, voucher draws will take place from Friday to Sunday, with redemption available from the following Monday through Thursday.

Authorities say these changes will give residents more time to use their vouchers and better plan their spending.

Yet despite the extended four-day redemption window, the prevailing market sentiment still points to one trend: shopping across the border in mainland China.

Against this backdrop, how should we interpret the “significant results” of the citywide consumption-incentive program?