Association warns of declining tourist purchasing power

The Macau Economic Association has raised concerns over a decline in tourist purchasing power, citing global economic uncertainties and weakening spending by visitors.

In its latest economic study, the association pointed to a drop in gaming revenues and the impact of high interest rates and trade policies on the Chinese yuan, which could further affect Macau’s tourism sector.

“High interest rates and changes in international trade policies pose risks to the RMB currency, which could impact the purchasing power of Chinese tourists visiting Macau,” the association stated.

Recent economic pressures have already affected visitor spending.

According to the Statistics and Census Service (DSEC), the per capita expenditure of visitors last year was MOP 2,157, a 14.6% decrease compared to 2023. The per capita expenditure of overnight visitors in Macau stood at MOP 3,884, while day-trippers spent an average of MOP 691—declining by 8.2% and 12.7%, respectively.

Joey Lao, president of the Macau Economic Association, also pointed to international trade tensions as a contributing factor. “The United States has recently imposed new tariffs on goods from various countries, including China, exacerbating ongoing trade tensions. In January, production indexes for several major nations remained below the average Purchasing Managers’ Index,” Lao said.

The effects of these economic headwinds are visible in Macau’s tourism and gaming sectors. During the recent Lunar New Year holiday, visitor arrivals dropped by 3.5%, and gaming revenues failed to meet market expectations, according to the association.

The average daily gross revenue from gaming activities remained below MOP 600 million in both December 2024 and January 2025, with figures of MOP587 million and MOP589 million, respectively. Additionally, local banks’ loan-to-deposit ratio declined from 100% in June 2023 to 79.3% in December 2024.

Despite these challenges, the association highlighted positive employment indicators and a stable unemployment rate.

Lao expressed optimism that new monetary and consumer incentive policies from mainland authorities could help boost Macau’s economy.

Meanwhile, the government also said that is exploring additional campaigns aimed at boosting community neighborhoods.

The Economic and Technological Development Bureau (DSEDT) confirmed that it is considering implementing initiatives similar to the citywide consumption program to further stimulate economic activity in these areas, in response to lawmaker Ella Lei’s interpellation.

The response highlighted that these new efforts aim to attract more visitors to community neighborhoods, which have experienced slower-than-expected economic recovery.

Looking ahead, the association expects the region’s economic outlook to remain stable over the next three months, though concerns over visitor spending and external economic pressures persist. The economic climate indices for December 2024 and January 2025 were recorded at 6.5 and 6.3, respectively, reflecting a stable outlook. Staff Reporter