Bar industry struggles under current landscape, points to directions for revival

Bruno Santos

Macau’s bar industry is facing mounting challenges as shifting social habits, regulatory hurdles, and a lack of targeted support threaten the survival of the sector, according to Bruno Santos, president of the International Bartenders Association (IBA) and former president of the Union of Bartenders & Cocktails of Macau (UBCM).

In an exclusive interview with the Times, Santos warned that Macau’s nightlife scene is losing traction, with locals increasingly traveling to Hong Kong for entertainment, reversing a decades-long trend and signaling deeper issues within the city’s post-pandemic recovery.

According to Santos, Macau must change its mindset regarding the promotion and development of the sector and facilitate the sector’s adjustment to the many restrictions that have been enforced over the past few years.

Santos noted that despite the current struggles, he believes there are new possibilities for the industry to develop and thrive, considering Macau’s positioning as a World Centre of Tourism and Leisure.

The president noted that for the first time in many years, Macau has seen locals exit the territory to have fun somewhere else, namely in the neighboring region of Hong Kong. This contradicts the trend of Hong Kongers coming to Macau seeking entertainment.

“I don’t see the business in a positive light, to be honest. I think everyone knows that. In fact, for the first time, we see people from Macau leaving Macau to go to Hong Kong to have fun. In 40 years of Macau, it has always been the opposite. People from Hong Kong used to come to Macau to have fun,” Santos said, explaining, “In other words, after the Covid-19 [pandemic], there has been a change in the atmosphere in Macau. Perhaps it also relates to the fact that many expats have left Macau in search of other jobs and opportunities.”

Adding to that impact, he remarked that Macau currently struggles to attract bar clients.

He noted that the large majority of the tourists who visit Macau are not interested in anything else except the gaming industry, while others visit for a very short period, which also does not help the sector.

“We can have the best facilities, the best bars, the best talents [in bartending], but if we do not have people, there is not much we can do about it,” he remarked, noting that in the past there were kinds of “bar streets” in certain areas, namely in the NAPE district, that would still enliven the area, but most of those have been shut down or had to transform their business models due to frequent complaints about excessive noise.

He believes that the government’s rules, such as noise, operation times, and human resources recruitment, are also accountable for these venues’ lack of development and are “killing innovation.”

He remarked that in many cities worldwide, including in Asia, there is a night economy that is not restricted to bars and clubs but also includes night markets and street artists, which are regarded as attraction points that make people leave their houses and enjoy the nighttime.

Pointing directions to overcome the situation

Pointing directions and making suggestions to reverse the current situation, Santos says that what needs to change is primarily the “mindset” of the officials and decision-makers, focusing on solving the problem.

“Given the current restrictions and all the issues mentioned, I believe that what could be done is to find a place (far enough away from the residential buildings) where the industry could develop side-by-side in a concerted manner. On this, I am seeing, for instance, the Fisherman’s Wharf area, which is also a place that is struggling and with most commercial places closed, but that has the structure already built and can benefit from its privileged location, outdoor seating areas, esplanades, etc.”

He believes that if there is a union among people interested in this industry, this could be an ideal place to develop the sector and ultimately benefit Macau in its image as an international tourism destination.

It is believed that implementing a location where a “Bar Street” or “Bar District” could be tested and developed by industry players could also benefit some experiments and work as an “incubator” for the business.

On the other hand, as Santos explained, this cannot be just a loose idea and must be a thorough plan that includes not only the spaces for the bars but also a complete plan that must consist of allowing the industry to stabilize at reasonable rental prices, recruit manpower, and facilitate access to the location via a transport plan.

Obsession with ‘50 Best’ list is an illusion

Santos notes the “false hope” for a spot in the ranking by analyzing the current bids by the integrated resorts within this industry.

“Hotels are only focused on a potential listing in the ‘Asia’s 50 Best Bars’, which is an illusion, as there is no way for them to be listed there. You need to read the regulations and understand how they work. Besides, Macau is integrated into a region with competitors such as Hong Kong, Taiwan, Seoul, and Bangkok, among others,” he said.

“We are not in a position to compete with these destinations,” he added, “Of course, most bars in Hong Kong are on the list. Because Hong Kong is a financial hub. And right off the bat, we see that the big players in the bar industry are located in financial hubs. We have London, Tokyo, Singapore, Hong Kong… Macau is not one of them,” he added.

Santos noted that bar culture is very much related to the so-called “happy hour culture,” which is not related to the “buy one, get one free” but to the fact that people leave the office at 5 or 6 p.m. and engage in networking time at bars.

By not being a financial hub, “we do not have those people,” he explains that Macau also has some cultural aspects that do not contribute to the business, such as the fact that most people drive private cars to work and back home. Most people are also not very knowledgeable about alcohol consumption levels and how alcohol is processed over time, and they are scared mainly by warnings of the penalties to be faced by those caught driving under the influence.

“As bar owners and bartenders, we also have to have an educational role. We need to teach people what is safe to consume in a certain period and how the alcohol will be metabolized.”

Santos notes that in some cases, local integrated resorts and tourism authorities fall prey to the idea that “hosting the event might give us extra credit within the industry.” He noted that the latest “Asia’s 50 Best Bars” awards were hosted in Macau earlier this month.

“The only way and occasions when Macau was featured in this list were due to the so-called Guest Shift, in which bars partner with famous names of bartending to host a special night or short-period event. However, the effects of this are very relative because it might be interesting and captivating for that particular night. Still, the returning customers will find nothing similar on the other days. It’s a big investment in financial resources that does not pay off over time. It does not create a culture; it stays in that moment only.”

Local recommendation guide beneficial

Santos said the industry would benefit more from creating a local guide for bars and nightlife entertainment instead of a brief reference in an international list. This would help mainly visitors who are not knowledgeable about the locations and where to go to be better informed about them.

In his opinion, some resources currently being used to support international events in which Macau is not being featured could be rerouted to support small companies and businesses via the creation of a map or a guide.

“I think we can cooperate with the MGTO (Macao Government Tourism Office), make a little map, and promote the bars that are trying to survive and have potential. There is potential in Macau! It’s not just criticism.”

This could be done concurrently with the idea of developing the “Bar District” to support the businesses in the short term, as he fears that many will not be able to survive much longer if nothing is done immediately.

He recalled that while the business is not very high, it is surviving by resorting to several adjustments and strategies from the owners. Still, many are impaired due to accumulated debts from Macau’s very long pandemic.

Human resources policies hindering opportunities

On the other hand, Santos explained that local hotels’ lack of investment in knowledgeable human resources, combined with Macau’s human resources policies, makes it challenging to hire non-residents, hindering some opportunities.

“Internal limitations are the ones holding us back. Let’s take the example of hiring foreign consultants because ‘they know best’ and hiring a consultant from Hong Kong to develop a cocktail menu here because they are the masters. This is false! And to prove it, we need to see that our association [UBCM] won the award for best cocktail in the world last year, while, just to put things in perspective, Hong Kong came in eighth position.”

At the 2024 World Cocktail Championship, the UBCM brought home multiple awards, including the “World Bartender of the Year” title won by Frederick Ma, a mixologist from Grand Lisboa Palace.

Santos also notes that the policies for those working in Hong Kong and Macau are quite different. The former can progress and establish a career in the industry, which is unlikely in Macau.

“This creates a situation where professionals want to work in Hong Kong, as there are career prospects. In Macau, people have the same ambitions; they show their potential but quickly get demotivated due to the lack of development. We have been losing a lot of talent in this field because of this,” Santos explained.

“I can say that most of our association members are foreigners, and around 80% are Filipino, who have grown with us and developed with us. Then, they move away to work in Singapore, Hong Kong, or other countries because they see that they are stagnating here. It’s normal for a professional who does not have the chance to grow to stop having professional motivation,” he concluded.