MGTO discards tourism tax idea

FOLLOWING the review of a study from last year, the Macao Government Tourism Office (MGTO) has announced that it will no longer consider the possibility of imposing a tourism tax.
In considering the city’s goal of sustainable tourism development, MGTO has concluded that “regulating [the] increase in visitor numbers by levying tourist tax may not be the most effective measure applicable to Macau.”
“After comprehensive contemplation of the study’s findings, the characteristics of local tourism as well as the turn of the situation, the SAR government decided to end its consideration of tourist tax imposition,” MGTO said in a statement.
“At the current stage, the SAR government is striving to bolster recovery of the [tourism] trade through different measures such as tax reduction and economic support, and avoid bringing any adverse effects upon the tourism industry,” MGTO added.
Last year, the bureau completed the Feasibility Study on Tourist Tax Imposition, which showed that 95% of local residents said they support the imposition of a visitor tax, whereas just 5% opposed the measure.
The findings revealed a divergence of opinions among different stakeholders in society. The study drew reference to eleven improvement strategies proposed by the World Tourism Organization (UNWTO) to cope with overtourism, and revealed that more cities opted for the strategies of “promoting the dispersal of visitors within the city and beyond” and “improving urban infrastructure and facilities.”
Visitor arrivals in Macau have plunged in recent months, weighing heavy on tourism-related industries.
Overshadowed by the disruption caused by the Hong Kong protests last year, monthly visitor arrivals in 2019 experienced a gradual decline in terms of year-on-year comparisons.
In the wake of the Covid-19 outbreak this year, visitor arrivals dropped even more drastically; from 2.85 million in January down to only 210,000 in March.
The plunge in tourist arrivals was a massive blow to the local tourism industry, affecting other related sectors including hotel, catering and retail industries.
Previously, MGTO warned that the imposition of a tax could affect a range of factors in the SAR including the health of the city’s economy and its “destination image.” It also said that collection of the tax would prove an administrative challenge.
The tourism authority had implied that the tax might not serve to achieve its purpose of moderating the number of visitors to Macau.
MGTO’s director Maria Helena de Senna Fernandes has previously hinted that the purpose of the tourism tax, if levied, would not be to reduce the number of visitors. The director has also said on several occasions that she opposes the introduction of a tourism tax.