Macau sees strong tourism but faces drop in per capita spending from mainland Chinese visitors

The Macau Economic Association reported strong tourism performance but noted a 15% drop in per capita spending by mainland Chinese visitors in the second quarter.

Spending from visitors from Japan, Singapore, and Malaysia increased, prompting an industry representative to advocate for targeted promotions aimed at long-haul and international tourists rather than focusing solely on boosting visitor numbers.

The Statistics and Census Bureau (DSEC) recently released its first-half tourist consumption survey, which showed that in the second quarter, total non-gaming tourist spending reached MOP18.25 billion, up 4.6% year-on-year.

The per capita non-gaming consumption was MOP1,950, a year-on-year decrease of 12.3%.

However, Japan, Singapore, and Malaysia all saw an increase against the trend, with Singaporean tourists’ per capita consumption rising by 22%.

Previously, when asked by the press regarding the situation, Maria Helenna de Senna Fernandes, director of the Macau Government Tourism Office (MGTO), said that the total amount spent by tourists is still higher than the pre-pandemic level of 2019.

However, due to the uncertain economic outlook in surrounding regions, tourist spending is declining.

According to her, the authorities have introduced measures to stimulate tourist spending, adopting a “low profit, high volume” strategy to attract more visitors through extensive publicity and maintain overall consumption levels.

These measures include launching hotel and dining discounts via cooperation platforms. In the future, they will explore additional projects that are appealing to tourists and encourage merchants to participate in related discount activities to drive consumption in surrounding areas.

The consumption habits of mainland tourists have undergone notable changes.

Data from the first half of 2025 shows that the average non-gambling expenditure per tourist was 1,970 yuan, reflecting a year-on-year decrease of 12.8%.

In an interview with the Times, Ip Kuai Peng, vice rector of the City University of Macau, highlighted that this decline is linked to the weak economic environment and evolving consumption habits. Notably, there has been a shift in spending patterns, with mainland tourists increasing their expenditure on dining and other areas while reducing their focus on shopping.

Additionally, trends such as flash tourism and the replacement of on-site consumption with online shopping are on the rise. Ip pointed out that current economic uncertainties are impacting mainland tourists’ spending, particularly with reduced household expenditures in first- and second-tier cities.

While signs of economic recovery are emerging, consumer confidence still requires strengthening.

To address these challenges, the economist suggested that the government implement measures to stimulate domestic tourist spending. Recommendations include expanding the scope of preferential policies for Macau, introducing consumption subsidies and lottery activities, and enhancing “tourism + culture and sports” experiential offerings.

Looking ahead, he anticipates that as residents’ incomes grow, mainland tourists’ consumption trends may shift toward personalized and high-quality demands.

The deepening of digital consumption and the diversification of travel-residence integration are expected to become significant trends. However, he cautioned that changes in the global economic landscape must be monitored, as they may influence consumption behavior.

To balance the development of the mainland market with emerging markets, Ip recommended that the government consider cultural differences, improve tourism infrastructure, establish market feedback mechanisms, and strengthen cooperation with other cities to create “multi-destination” tourism products.

For instance, in marketing to the Singapore market, English can be utilized for promotions, alongside international marketing strategies.

For the Malaysian market, it is crucial to respect local religious beliefs and cultural customs, ensuring that tourism products and services align with Muslim needs. In targeting the mainland Chinese market, leveraging social media platforms such as WeChat and Douyin for promotion, and offering cuisine that resonates with mainland tourists’ tastes, would be beneficial.

Budget travel

While the number of visitors has increased, the average spending per visitor has significantly decreased.

A similar trend has emerged in Hong Kong, where, like Macau, mainland influencers have promoted the “budget travel” concept on social media platforms. The term “$0 Budget Travel” has gained traction, highlighting a shift in consumer behavior toward more economical travel options.

When discussing “budget travel” with the Times, Paul Wong, chairman of the Macau Leisure Tourism Services Innovation Association, expressed hesitation in using the term to describe the current situation. He emphasized that travelers’ needs are dynamic, changing with different stages and guests, and influenced by factors such as policies, exchange rates, tax rates, and trends. In particular, he noted that young people have unique ways of exploring and experiencing destinations.

“As an association or small- and medium-sized enterprise in Macau, we need to adapt dynamically to the changing needs and diversity of our target visitors and adjust our products and services to meet their demands,” he said.

He further emphasized that increasing visitor numbers while attracting more long-haul or overseas visitors, balancing different visitor sources, and extending their length of stay all require consideration from multiple angles.

According to data from the DSEC, the number of group tourists has dropped significantly since the Covid-19 pandemic in 2023, recovering to only about 30% of 2019 levels.

In the first half of 2025, the number of inbound tourists traveling in groups decreased by 2.3% year-on-year to 963,000. Wong noted “a major shift in the group tourist model,” emphasizing that while the majority of visitors to Macau are still mainland Chinese tourists, the number of international tourists has been steadily increasing, indicating a gradual upward trend.

He pointed out that compared to pre-pandemic levels in 2019, Macau’s tourism capacity has significantly improved, with enhanced border control policies and a notable increase in the quality of hotel and tourism services.

However, he emphasized that pursuing visitor numbers is not the industry’s primary goal. The industry has consistently agreed that the focus should be on targeted promotions to attract long-haul and international visitors.

In light of the increasingly integrated entry and exit policies launched by the mainland Chinese government, along with visa-free measures between Macau, the mainland, Hong Kong, and internationally – a trend that is gaining momentum – Wong emphasized the necessity for Macau to enhance the appeal of its tourism resources.

He advocated promoting collaboration between small- and medium-sized enterprises and local communities to make Macau’s tourism facilities more attractive.

“Even for short-haul travelers, if we can optimize and enrich our tourism facilities, we can increase their spending and lengthen their stay,” he stated. For instance, performances, events, and concerts could attract residents from Zhuhai or Zhongshan, encouraging them to extend their visits and boost their spending. He underlined that the tourism industry must explore how to leverage the value of short-haul travelers effectively.

Regarding “budget travelers,” the MGTO director reportedly made a public statement during a joint interview with Guangdong-Hong Kong-Macau Greater Bay Area media during their tour in Macau in June.

She stated, “We do not discriminate against budget travelers. Although they may only stay for a few hours, they still generate consumption.”

She expressed hope that all travelers in Macau can find suitable consumption venues and encouraged everyone to explore local community shops in Macau, “rather than necessarily spending money at expensive places.”

Senna Fernandes noted that “Macau’s tourism industry has been on an upward trajectory since the pandemic,” and despite the “economic downturn,” Macau will “rise to the challenge.” She explained the spending patterns of Macau tourists, stating, “For example, out of MOP100 spent, MOP45 is allocated to shopping, MOP23 to accommodation, and the remaining MOP32 to food and beverages.”