Economist questions effectiveness of IP-themed community projects

The   Macau Economic Association (MEA) has forecast an improvement in overall economic data for the second quarter compared to the first, although it has acknowledged that the economic impact of the city’s two ongoing intellectual property (IP) community projects has been “somewhat disappointing.”

The Economic and Technological Development Bureau (DSEDT), in collaboration with the Macau Government Tourism Office (MGTO), is actively introducing renowned IP-themed displays to attract visitors and stimulate the local economy.

At an event attended by media representatives from Guangdong, Hong Kong, and Macau, Maria Helena de Senna Fernandes, the tourism chief, expressed confidence in IP cooperation projects to connect various consumption scenarios.

She also announced plans to launch another IP-themed project in the ZAPE area as part of ongoing efforts to transform and revitalize the region.

The tourism office recently announced the results of the project’s first phase, which took place between June 6 and 28, attracting approximately 153,000 visitors to the four community installations and activity hubs.

Different Perspective from Gov’t
However, the general public holds a different perspective. At a recent regular meeting of the Northern District Community Service Consultative Council, Lao Ka Kei, a council member, highlighted that the direct economic benefits of IP-themed initiatives are limited.

“Consumption cards are a more effective means of stimulating the economy,” she argued.

She emphasized the government’s crucial role in fostering IP economic cooperation and suggested necessary improvements.

“Even if businesses want to collaborate with IP owners but fear copyright issues, the government should intervene to encourage them to ‘link up’ with IP brands to launch products.
Additionally, transportation problems diminish the effectiveness of the IP economy, so improvements to the ‘casino shuttle’ routes are essential, along with the distribution of consumer discount coupons to attract spending and benefit businesses,” she stated.

Similar sentiments were expressed by Lao Pun Lap, president of the Macau Economic Association.

Speaking to reporters at a public event on Sunday, he noted that “due to its small scale [the size of the IP-themed projects], visitors often just take photos and leave, which fails to stimulate the local economy.” He observed that areas like Taipa’s Rua do Campo, already bustling, experience better foot traffic and some positive effects, while other areas, such as Ilha Verde and Praça de Luís de Camões, are proving to be “disappointing.”

While acknowledging that the idea is “pretty good,” Lao bluntly stated that the authorities had not adequately considered how to strengthen cooperation with local businesses and community groups during the implementation process.

Regarding the suggestion to open up “IP” licensing, he remarked: “For example, when making a cup of coffee, can we use the IP character? Can we incorporate it into a cake? Or create souvenirs through licensing, even giving them to our customers or tourists? I believe this type of collaboration would be much more effective.”

Secretary Tai defends projects

Upon hearing objections to the government’s promotion of the “IP” community economy, Secretary for Economy and Finance Anton Tai disagreed with Lao’s remarks during the Legislative Assembly session on Tuesday.

He stated that some social commentators, observers, and even scholars may not fully grasp the government’s initiatives and the benefits they can provide: “There are individuals who may not be entirely clear about what the government has accomplished and the advantages it can bring.”

In response to legislative inquiries about the city’s revitalization project on six local old quarters during the session, the Secretary shared insights on tourist spending patterns and trends.

Referencing market research data, he insisted that the gross profit generated by the new consumption model is twice that of the traditional model.

Consumer spending in Macau is not decreasing overall; rather, it is distributed across two different levels or categories: one pertaining to the new generation and their consumption patterns, and the other referring to traditional consumption.

According to Tai, among companies participating in the new consumption model, 50% achieve gross profit, while traditional companies only achieve approximately 23%, with the manufacturing sector accounting for just 7%.

In an effort to stimulate consumption among Macau tourists, Tai stated that IP-themed community projects aim to introduce new consumption models. These initiatives require the active participation and cooperation of small- and medium-sized enterprises (SMEs) within the community.

“There are currently multiple levels of customers, but the authorities are focusing on two levels: Generation X and Generation Z. Take concerts as an example. The former spend at a medium to high level, while the latter are mainstream consumers who generate high traffic and enter communities. The city’s six gaming operators are well aware of this and cater to both groups,” he added.

The authorities reported the success of the two IP-themed projects, noting that telecommunications data indicated a 15% increase in visitors to the relevant areas on weekends and holidays since the activities were launched. In total, 275,000 visitors took photos at the IP-themed installations, averaging approximately 2,700 visitors per day.

It was revealed on Tuesday that a tea beverage merchant has formed a successful partnership with an IP-themed brand. Together, they have developed new products that are anticipated to be launched by the end of the month.