Tourist tax study to complete by year-end

The Macau Government Tourism Office (MGTO) intends to complete the study on the feasibility of imposing a tourism tax in Macau “by the fourth quarter” of this year, according to the bureau’s director, Helena de Senna Fernandes.

Previously, the MGTO opened an online survey asking for residents to submit their opinions on whether the city should adopt such a tax. The feedback was inconclusive, according to tourism authorities, but those in favor had suggested the amount be set at over 100 patacas per visitor.

Now the tourism chief is warning that the timing for the proposed entry levy might be inopportune, considering the economic slowdown in mainland China, Macau’s major visitor source market.

Senna Fernandes has previously indicated that she is opposed to the idea, arguing that an arrival levy on tourists would be incompatible with Macau’s objective of becoming an international tourism center.

The number of visitors to Macau rose 18% in year-on-year terms to 27.43 million during the first eight months of 2019. More than 70% of visitors were from the mainland, while a further 20% were from either Hong Kong or Taiwan.

Macau is still on track to break the symbolic 40-million level this year, previously earmarked by the Institute for Tourism Studies as the city’s “optimal tourism carrying capacity.” Last year’s influx of 35.8 million tourists represented an almost 10% rise from a year earlier.

The rapid rise in the number of visitors has become a source of concern for the Macau public this year, especially as gaming receipts and other tourism spending are growing at a much slower pace or not at all.

The situation has prompted discussion over whether a tourism tax could serve as a solution to prevent overcrowding on the city’s streets and at its major attractions.

The idea has proved unpopular among representatives of the hotel industry, who earlier this year told incoming Chief Executive Ho Iat Seng that the tax would be “a handicap for Macau’s tourism.” DB