Macau looks to strengthen core visitor base after holiday dip

Written by Neha Soni

Concerns were raised after Macau’s visitor arrivals witnessed a significant drop during the Chinese New Year holiday, falling short of even Macao Government Tourism Office’s (MGTO) forecast.

Andy Wu, president of the Macau Tourism Industry Association, attributed this decline to focusing more on international tourists. The MGTO announced that the number of international visitor arrivals were up 10.2 percent during the Golden Week.

MGTO noted that Macau welcomed 58,000 international visitors during the eight-day Spring Festival Golden Week. This, Wu believes, may have inadvertently led to a neglect of traditional markets such as mainland China and Hong Kong.

International visitors rose, regional dipped

To address this, Wu stressed the need to refocus on retaining traditional markets, including mainland China and Hong Kong. There is also a concerted effort to tap into international markets to broaden Macau’s visitor base.

Macau registered 1.31 million visitor arrivals between 28 January and 4 February. This marks a drop of 3.5 per cent from last year’s Chinese New Year holiday period, averaging nearly 164,000 visitors per day. The average daily visitations recorded were below the MGTO’s forecast of 185,000 visitors per day.

One of the key reasons for the drop in Macau’s visitor numbers was the influence of neighbouring regions, particularly Hong Kong. Wu suggested that large-scale celebrations in cities like Hong Kong may have diverted some potential travelers away from Macau, leading to an initial drop in the number of visitors, followed by a slight rebound as the holiday progressed.

Hong Kong also saw an 8.9 percent year-on-year decline in visitation. This drop was attributed partly to the “Hong Kong Car Northbound” policy. The policy encouraged Hong Kong residents to spend their holiday in mainland China instead of Macau, which further impacted visitations.

Optimism about visitor numbers

However, Wu remains optimistic about visitor numbers returning to pre-pandemic levels by the end of the year, with continued government support.

Macau Leisure Tourism Services Innovation Association President Wong Fai offered a more positive outlook. Noting how Day 3 (1 January) of the festival saw visitations reach their highest level since 2019, he emphasised the effectiveness of off-peak travel strategies.

He noted how the overall foot traffic remained strong despite visitor numbers declining later in the holiday. This, he believes, offered a relief to the concerns on decline in visitors, noting that the situation is less concerning than perceived.

Fai said Macau’s new visa policies will also serve as potential long-term drivers of visitor growth. Macau’s new visa policy for mainland Chinese residents from Zhuhai and Hengqin has led to a sharp rise in tourist arrivals, with visitor numbers from Zhuhai increasing by over 26 percent year-on-year.

The policy, implemented on 1 January, allows residents with household registration and residence permits in these regions to apply for multiple-entry visas. These permits, valid for one year with unlimited entries capped at seven-day stays, are expected to add 20,000 daily visitors from these areas. 

However, challenges for retailers loom as high foot traffic have not necessarily translated into increased sales. He offered adapting to evolving travel patterns and consumer preferences to work out this situation as consumers become more selective in their spending habits.

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