Recent calls have emerged to launch another community spending incentive program aimed at boosting local consumption, with the restaurant industry reporting average sales increases of 20 to 30 percent during such campaigns.
In a recent interview with public broadcaster TDM, the Macao Catering Industry Association highlighted that the period from this month through next month is traditionally a “slow season” for the catering industry.
Citing the substantial boost in revenue for small- and medium-sized enterprises (SMEs) achieved by the government’s previous “Community Consumption Grand Rewards” programs, the association’s president, Aeson Lei, urged the authorities to meet the industry’s expectations and the public’s needs by considering the reintroduction of these programs to stimulate consumer spending.
It has been approximately three months since the latest round of the Community Consumption Grand Rewards program ended.
With the conclusion of the Lunar New Year, tourist numbers have gradually decreased, and the market has returned to a quieter pace.
This has prompted renewed calls for the government to initiate additional rounds of such incentives during the off-season.
Suggestions include optimizing the program by shifting to weekend consumption vouchers, with verification conducted on weekdays, and extending the redemption period so residents can benefit across more industries.
A scholar, examining the issue from a macroeconomic perspective, has confirmed that consumer incentive programs can effectively stimulate private consumption and enhance market vitality.
However, they cautioned that the increase in residents “traveling north” – the practice of visiting mainland China, particularly cities like Zhuhai and Guangzhou – for weekend shopping diverts spending away from the local economy.
The issue of residents traveling north to shop has often been linked to the implementation of the “Northbound Travel for Macau Vehicles” scheme, which has made it more convenient for residents to shop in mainland China, resulting in decreased business for local restaurants.
However, some stakeholders argue that the challenges faced by Macau’s SMEs cannot be solely attributed to this policy.
In an interview with the Chinese-language media outlet Exmoo, published earlier this month, Ip Wai Keong, a member of the Transport Consultative Committee, stated that the challenges faced by Macau’s SMEs cannot be solely attributed to the “Macau Vehicles Northbound” policy.
He emphasized that residents’ demand for border crossings during holidays would persist even without this policy. Ip advocated for the government to implement a “comprehensive set of measures” and develop additional policies to support SME growth, thereby safeguarding local employment.
Comprehensive reports recommend that the government focus on consumption vouchers to channel benefits to a wider range of industries and encourage local spending.
For instance, optimizing redemption time slots could incentivize spending in Macau during weekends, while extending the redemption period would increase convenience. These measures are expected to diversify spending patterns, allowing residents to explore more industries and unlock the diverse potential of Macau’s consumer market.
No Comments