Travel spending shifts leave neighborhoods busy but underperforming

[Photo: Lynzy Valles]

Changes in visitor spending habits are putting pressure on the local community economy, despite record-high tourist arrivals this year, according to a local business group, which is urging targeted measures to draw visitors into neighborhood districts.

Chairman of the Industry and Commerce Federation of Macau Central and Southern District, Lei Cheok Kuan, said he welcomed the continued growth in inbound visitor numbers but noted that many tourists are spending differently than in the past.

While streets in community areas remain busy, consumption has not kept pace, creating a “busy but not profitable” situation for small and medium-sized businesses.

To address the issue, Lei suggested the government introduce consumption incentives specifically designed for visitors and limited to use in community districts.

Drawing on earlier consumption reward schemes, he proposed offering enhanced incentives – such as three- or fourfold spending bonuses – with a minimum qualifying amount of MOP50, as cited in a Macao Daily News report.

The incentives would exclude large integrated resorts, with the aim of channeling tourist spending directly into local neighborhoods.

He also said longer-term support is needed to strengthen the competitiveness of community businesses.

Meanwhile, Lei called on the government to allocate more resources to industry associations and facilitate exchanges involving experts and academics to help businesses improve product quality, diversify offerings, and adapt to changing consumer preferences.

The chairman said the goal should be to achieve not only strong visitor numbers but also stronger spending power.

He further suggested refining promotional strategies by shifting from broad-based visitor attraction to more targeted outreach.

In particular, he proposed encouraging domestic and international companies to hold corporate events in Macau, such as annual meetings, conferences, product launches, or seminars.

Such activities, he said, could bring in higher-spending visitors and generate wider spillover benefits for community businesses, supporting local economic vitality on multiple fronts.