Sharing economy a demand in other regions, MGTO says Macau not ready

Mario Hardy (left) and Helena de Senna Fernandes

In several regions, the hospitality industry is competing with alternative accommodation such as Airbnb, an online hospitality service dubbed a ‘home-sharing’ platform. Yet this is not the case in Macau due to the absence of regulations of the sharing economy.

At the Pacific Asia Travel Association (PATA) media briefing held yesterday, PATA CEO Mario Hardy expressed that the association is in favor of the sharing economy, citing its recent partnership with Airbnb.

Hardy told the press that the firm was keen on engaging not only with the association but also with the public and private sector.

Although such alternative options for accommodation in the hospitality industry remain a tough competitor of integrated hotels, the CEO advised hotel operators to be creative and innovative in developing new concepts.

“We have empty properties that are not being used. Why not make them available to other people? Should the government actually regulate that? Absolutely. Should they be paying taxes? Absolutely,” said the CEO.

While Macau is currently not embracing the sharing economy – local authorities have not approved Airbnb and have rejected ride-hailing app Uber – Macau Government Tourism Office (MGTO) director Maria Helena de Senna Fernandes defended that the region’s population is not ready for such arrangements.

Fernandes referred to the two surveys the bureau conducted in 2014 and 2016, which show that residents are not in favor of such schemes at this stage.

The director explained that problems arose when hosts offered illegal accommodation, citing the neighborhood’s concerns about clandestine activities and even crime.

“The population is very much against having your private home being rented out for such accommodation. [So] I guess at this point in time it [legalizing sharing economy] won’t be possible to push forward,” said the bureau head.

Fernandes stressed that it is premature to introduce these concepts until more research has been done on converting independent buildings into family hostels or similar establishments.

Earlier this year, MGTO announced that, based on the study they conducted in July 2016, society has not reached a thorough consensus on the operation of family hostels in local communities.

The Secretary for Social Affairs and Culture, Alexis Tam, previously also said that a project which aimed to establish a legal framework for the use of family houses as hostels would not move forward.

Tam also noted that, in order to put such a project into force, they would have had to sufficiently consider its implementation in order to guarantee that the new model “would not cause more problems than benefits.”

While Fernandes still pledged to monitor the matter, she noted that there are 600-budget rooms that are available for tourists.

She also proposed that there are legal solutions available on the market if any owner wants to repurpose an entire property as a hotel.

“It’s not a problem of Airbnb. It’s a problem that existed before Airbnb came into business. [That said, the project] is not really acceptable for the local population,” the MGTO director reiterated.

Less tourists expected this month

Macau Government Tourism Office (MGTO) director, Helena de Senna Fernandes, said the consequences of Typhoon Hato would be felt through the lower number of tourists in September. Speaking on the sidelines of the PATA Forum, Senna Fernandes said that the number of inbound tourists “went well” in the first half of August, before the typhoon struck on August 23. Senna Fernandes remarked that the number of tourists has since stabilized to a level similar to a year ago, but added that after  September 5, she was not too optimistic about the number of inbound tourists for the rest of the month.

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