Macau businesses struggle without local customer base: association

Businesses in Macau’s residential neighborhoods sat quietly over the recent Easter holiday, illustrating that more Macau local residents are choosing to spend their money across the border in mainland China, while visitors remain exclusively in the city’s tourist areas.

Business owners in Macau’s Northern District acknowledged that proximity to China means residents “can go outside [of Macau] to spend at practically no cost,” according to Ma Kin Cheong, director-general of the Industry and Commerce Association of Macau Northern District.

Some restaurants and residents in the Northern District said the Northbound Travel for Macau Vehicles program has also contributed to the decline in local spending. This program has made it more convenient for residents to drive to the mainland, further reducing the incentive to spend locally.

While the Macau government has launched initiatives to boost tourism in residential areas, installing attractions in the Northern District and collaborating with casinos to revitalize places like Barra, these measures have yet to significantly impact the tourism situation and merchants are saying it is not enough.

Leong Ka Ion, deputy director-general of the Macao Catering Industry Association, told TDM that rising rent costs combined with diminishing customer numbers are putting intense pressure on businesses outside tourist areas.

He described the recent surge in closures as “more serious than during the pandemic” and estimated that 30-40% of restaurants his association contacted are contemplating shutting down.

Leong voiced alarm over the growing wave of closures, attributing the weakening of the local market partly to residents departing Macau to visit, shop, and dine across the border in Guangdong instead.

“We hope the government can push forward more promotional measures allowing small and medium businesses to continue operating easily, in addition to encouraging local residents to stay in Macau and spend,” Leong said.

Residents in the Northern Macau District also noted the quiet streets over Easter.

“There are very few people in the Northern Macau District and the Hac Sa Wan is quiet and deserted,” one resident said, as cited in the report. “Have you noticed that many shops have closed down? I have seen many.”

Merchants also described weak business over the weekends.

“Saturdays and Sundays are a bit worse because people can now drive to the mainland and go out for a day or two. Monday to Friday is much better for business,” one merchant said.

Another merchant said “most of our customers are locals, and there are very few outsiders visiting.”

They added that “during the holidays, everyone goes to mainland China, and it becomes very challenging. We also have to deal with rent increases and employee salaries.”

In contrast, stores in Macau’s casino and tourist districts reported decent Easter business.

“Business was very positive,” said Stephen Anderson, owner of Cathedral Café, noting a “diverse crowd—which is always good to see.”

This stark difference underscored the vulnerabilities of retailers dependent on local patrons.

As residents travel to Guangdong instead of spending in their own communities, neighborhood businesses suffer.

Therefore, district business groups are urging government support, as the local market weakens and closures rise sharply.

Staff Reporter

Hong Kong businesses suffer as Easter travel bypasses local economy

In the neighboring region Hong Kong, local businesses are also suffering heavy financial losses from the recent Easter holiday exodus.

Over 1.5 million Hong Kong residents left the city during the four-day break, resulting in an over 30% drop in revenue for restaurants compared to last year’s Easter holiday.

Simon Wong, head of a catering industry association, warned that if the trend of residents choosing to spend holidays in mainland China continues, it could seriously damage confidence in Hong Kong’s commerce and trade.

Industries beyond dining were similarly impacted.

Retail shops and popular tourist destinations like Sai Kung saw far fewer patrons, as locals opted to travel overseas or to visit mainland China instead of supporting the local economy.

One Sai Kung restaurant owner described the holiday period as the worst they have seen in decades due to the lack of domestic customers, as cited in media reports.

They appealed to authorities to not neglect Hong Kong businesses in pursuit of ambitious plans to develop the Greater Bay Area, stressing the region’s prosperity depends on retaining local consumer bases.

If mass travel outflows persist during holiday periods, Wong fears hundreds more Hong Kong businesses could be forced to close.