Impact on international arrivals expected to be minimal amid fluctuations in oil prices

While the local airport operator in Macau has reported that no airlines have announced plans to increase surcharges amid ongoing instability in the Middle East and fluctuations in international oil prices, local tourism operators believe the impact on international arrivals will likely be minimal.

Chinese media outlet Macao Daily News examined how fuel surcharge adjustments by Hong Kong Airlines and Cathay Pacific might impact Macau residents’ travel intentions.

The outlet cited a tourism industry representative saying that Macau travel agencies have not yet observed any changes to tour fees.

According to an industry insider quoted in the report, who requested anonymity, even with the increase in fees by Hong Kong’s airlines, fuel surcharges for mainland China and Southeast Asia – currently the primary destinations for Macau residents – are not expected to increase significantly. The insider believes this will not reduce residents’ enthusiasm for travel.

However, the insider acknowledged that while fuel surcharges will affect international visitors to Macau, the impact is expected to be “very limited,” attributing this to the fact that most international arrivals come from Southeast Asia, Japan, and South Korea, while travelers from the Middle East and Europe make up a smaller proportion.

As noted, the current tourism market is closely monitoring evolving circumstances and airline operational adjustments.

It has been observed that flight options for European group tours have changed significantly, shifting from favoring Middle Eastern carriers for layovers to predominantly using non-Middle Eastern transit airlines.

This change raises concerns that route adjustments may lead to increased travel costs due to higher airfare prices.

Meanwhile, the Macao Petroleum Industry Association assured the public that it has developed supply guarantee plans for the Macau market to ensure a stable local fuel supply and reasonable price adjustments.

The association emphasized that the overall fuel supply to Macau remains stable, with sufficient inventory to meet residents’ basic daily needs.

It also stated that if international oil prices fluctuate due to developments in the Middle East, Macau’s fuel prices would adjust accordingly. However, it emphasized a rational approach to price changes, referencing fluctuations in international Platts oil benchmarks.

The adjustment process is designed to ensure transparency, reasonableness, and standardization, thereby supporting fair and orderly market operations.

As reported yesterday, the Economic and Technological Development Bureau (DSEDT) said it is closely monitoring international crude oil prices and implementing measures to safeguard consumer rights.

According to the bureau, the current unstable international geopolitical situation and the volatility of international crude oil prices have prompted the inter-departmental fuel monitoring group to continuously track the situation closely.

MGTO: Middle East situation not yet affecting Macau visitors

Middle East tensions, including developments in Iran, have so far had no clear effect on Macau’s tourism, Macao Government Tourism Office (MGTO) director Maria Helena de Senna Fernandes said.

Speaking to media on the sidelines a press conference yesterday, Fernandes remarked, “Yes, I think the impact we’re seeing right now, judging from the street scenes, is not just in Macau, but internationally. We still need to observe how the situation develops,” she said.

“In terms of tourist numbers, it’s not very noticeable yet, but we need to judge based on the final assessment results.”

The tourism director cited affected Hong Kong flights but noted that there are no direct Macau routes to the Middle East or Europe, with no data yet on Hong Kong-Macau crossings.

“I think it’s too early to draw conclusions, but the development of tourism is certainly inseparable from peace, so creating a good tourism environment is crucial,” Fernandes said. “Therefore, I believe that if conflicts occur around the world, they will inevitably impact the tourism industry.”

MGTO will assess a potential Middle East Expo in May and the Arabian Travel Market 2026 in Dubai in early May, prioritizing safety. “We have to see if the Expo will be held as scheduled, so we are still assessing the situation,” she told reporters. NS