Lawmaker questions cost and impact of IP-themed economic initiatives

Macau’s IP-themed “punch-card economy” or “Daka” initiatives are drawing criticism over their cost-effectiveness and tangible benefits to local businesses. Lawmaker Ron Lam examined the government’s “Flora Fête with Sanrio characters” and “Pop Mart Macao City Walk” projects, questioning their impact on community consumption amid broader economic pressures.

The Economic and Technological Development Bureau (DSEDT) spent MOP18.87 million on the Flora Fête. Meanwhile, the Macao Government Tourism Office (MGTO) allocated HKD8 million in tourism funds to the Pop Mart City Walk initiative.

Despite this combined investment of MOP26.87 million, Lam questions whether it effectively empowers small and medium-sized enterprises (SMEs) or drives neighborhood economies.

In his written inquiry, Lam highlights that neither project partners with local merchants nor offers consumption incentives such as discounts or co-branded products. Instead, they focus on lucky draws and IP-themed installations, which traders say do not “promote merchants or stimulate consumption.”

Additionally, both initiatives run concurrently – Sanrio in the Northern District from April 1 to October 13, and Pop Mart across the Macau Peninsula and Taipa from June 6 to September 21, according to the MGTO website.

Lam describes both initiatives as sharing “nearly identical structures”: consumer lucky draws awarding IP gifts instead of merchant-focused benefits. The lawmaker questioned this redundancy.

“Why do the two campaigns overlap, and why is the content of the activities so similar?”

His inquiry requested a justification for the cost-effectiveness of this approach, which leverages IP-driven events, and that the results and findings be disclosed.

The lawmaker also requested transparency in the project selection criteria, asking why the government had not disclosed the expected outcomes or economic indicators.

According to reports, some catering merchants initially expected to collaborate on launching limited-edition food and beverage items featuring the IP during the event to maximize its promotional impact and boost sales.

However, the reality was that any such collaborations required merchants to negotiate independently, without any support or involvement from the project organizers.

Lam’s inquiry also targets the government’s plans to revive the Novos Aterros do Porto Exterior (NAPE) and Zona de Aterros do Porto Exterior (ZAPE) districts with international IP-themed installations to revitalize the area.

With year-end satellite casino closures already threatening local businesses, Lam warns that shop closures could undermine these efforts, as the initiative is supposed to launch between mid-November and next year, according to the DSEDT.

“The authorities must explain how they’ll ensure public funds achieve measurable results, and that findings (of leveraging IP-driven events) will be disclosed,” Lam stated.