Cultural tourism, night economy and business facilities should lead ZAPE revamp: report

[Photo: Yuki Lei]

Cultural tourism, the night economy, and business support facilities should be prioritized in the functional restructuring of the ZAPE area and its community economic transformation, according to a recent think tank report.

The area’s transformation, set in motion by the withdrawal of satellite casinos at the end of last year, is now entering a medium- to long-term phase of functional renewal. With the casinos’ departure, local businesses face mounting pressure to reinvent themselves.

Lei Cheok Kuan, president of the Industry and Commerce Federation of Macau Central and Southern District, observed that while many shops have shut their doors in the past six months, others have managed to survive and thrive by enhancing their offerings and service standards, securing a steady stream of customers.

Former Secretary for Economy and Finance Anton Tai had earlier said that the ZAPE district’s transition would take time, with the government monitoring the situation and remaining committed to developing new tourism products and organizing more events to draw visitors and increase foot traffic.

Yet a study by the Collective Wisdom Policy Center on the district’s functional and economic transformation found that while short-term stimulus measures had temporarily boosted visitor numbers, fundamental challenges remained – including short-lived activities, uneven sectoral benefits, poor spatial design, weak publicity, and insufficient data monitoring.

“The difficulties now facing the ZAPE district appear on the surface as declining foot traffic, weaker spending, and business strain, but in reality, they reflect the unsustainability of a model overly dependent on a single visitor base and casino-driven consumption,” the report concluded.

The think tank report called for a shift from short-term events to a long-term community business district strategy for the area, citing issues such as product homogeneity, changing visitor profiles, uneven benefits, poor resource coordination, and weak publicity.

The group urged better integration with hotels and offices, improved walkability, systematic impact assessments, and tailored business support – shifting the focus from “attracting visitors” to “keeping them spending.”

The report advocates a long-term vision for the district as a multifunctional zone blending business services, community retail, cultural tourism, and the night-time economy, moving beyond its past reliance on casino-linked foot traffic.

It also recommends repurposing idle land for a Sino-Portuguese cultural experience area to boost community vibrancy. Meanwhile, the business representative called on businesses in the area to proactively upgrade their operations, embracing both digital and physical channels for promotion and management.