Chan Chak Mo
Despite robust economic growth and recovering consumer spending, restaurants and retailers in non-touristy areas are far from recovery.
The recent 10-day Chinese New Year holiday period remains an important barometer for consumption, which has been lagging due to the country’s continued property crisis and macroeconomic headwinds.
While restaurants and retailers in tourist areas have recorded a surge in sales, those in the city’s community areas are not seeing signs of recovery.
Speaking to the press, lawmaker and businessman Chan Chak Mo said that strong recovery is visible in the city’s most famous streets, as 38% have said revenues have increased, while 18% disagreed. The remainder implied that revenues were similar to last year.
Speaking of eateries and retail outlets in less tourist-visited places, “they are not doing so well.”
Only 18% said they are doing better than last year, 30-something percent said they are worse [off] than last year,” he said,
Just recently, Fong Kin Fu, the president of the Federal General Commercial Association of Macau Small and Medium Enterprises, highlighted the decline in business activity and spending in residential areas, particularly in northern Macau.
This deems potential closure of businesses, thus focus needs to be redirected towards non-tourist districts.
Meanwhile, Chan believes that there will be continuous increases in people visiting Macau, amid the government’s continuous promotion in attracting tourists – anticipating that “this year’s figures will be greater than last year.”
However, the government has to still figure out how to help restaurants in districts not visited by tourists.
“It’s not that easy and it’s not something that we can [fix in a short time],” he said.
The lawmaker and president of the United Association of Food and Beverage Merchants of Macau has also addressed the fact that spending habits of local residents have shifted – even noting that many are opting to leave Macau during the weekend to visit the mainland, and in doing so boosting their consumption in nearby regions.
“They have the tendency every weekend to drive up to the mainland to spend and to visit so that is a big problem for the time being for the restaurant[s]. Not just for the restaurants, but retail shops and businesses are suffering. But I’m sure the government is thinking about a lot of things to [protect the business],” he said.
Questioned by the Times on whether local SMEs are greatly benefiting from the revitalization program of the six gaming operators and the government, Chan said that one of the main benefits of this program is that tourists can lengthen their stay, and thus spend more.
However, “that would take a bit of time.”
“The six gaming operators are doing a lot because they have the resources. Among themselves, they do have to compete in a good way,” said Chan.
“The old district [that are part of the revitalization program], they will run down, there may not enough electricity, old façade, and [will need to be refurbished], […] so the government coordination is very important,” he added.
The government had already coordinated with the integrated resorts on how to promote tourism through community revitalization.
During the pandemic, the government deliberately carried out works in the old districts to beautify them, introducing SMEs in these districts.
“Even though the casino wants to do something, they need to go to the government, then the community, then only we can start. That’s the direction we’re taking, it will take a few years but we’ll get there,” Chan concluded.
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