Catering sector struggles as tourist spending shifts: Chan Chak Mo

The catering industry is observing changing patterns in tourist spending, according to Chan Chak Mo, president of the United Association of Food and Beverage Merchants of Macau.

At an event yesterday, Chan told the press that although the Chinese New Year holiday in January brought a surge in business for resorts’ dining operations, smaller establishments have not seen the same benefit.

He also added that foot traffic in residential areas has diminished, and even renowned tourist destinations such as Rua do Cunha and the Ruins of Saint Paul’s have experienced fewer visitors.

“The sector has been fairly steady since February, but March has seen further declines in business,” Chan noted.

As the managing director of Future Bright Holdings, a local catering company, Chan revealed that the company recently issued a profit warning, citing a sharp 87.7% drop in earnings.

He attributed the decline to the ongoing economic uncertainties in mainland China and the reduced flow of visitors after the holidays, which have shaken industry confidence.

“Many people believe that the future is somewhat unstable and that confidence is lacking. I hope the government will take action to genuinely focus on improving livelihoods in traditional areas of the catering industry,” Chan added.

Chan’s comments come ahead of the government’s launch of a MOP295 million consumption stimulus program.

The 10-week initiative aims to encourage weekday spending by offering residents the chance to win shopping vouchers redeemable on weekends.

Chan also emphasized the importance of urban revitalization and increasing festive activities to help attract tourists.

“Despite a decrease in tourists’ spending power, broadening the tourist market is essential for generating new opportunities within the industry,” he concluded.