Leaders in the tourism sector say that visitors to Macau are younger and are looking for a different type of experience. They rely more on social networks to choose their itineraries and are more willing to explore unusual neighborhoods. However, their overall purchasing power is lower
Macau recorded the highest influx of tourists since the beginning of the pandemic on Labor Day. Although the number of visitors marks the gradual recovery of the sector after three years of difficulties, representatives of the industry and local businessmen are concerned about the changes in the profile of post-pandemic tourists.
According to the latest data from the Macao Statistics and Census Bureau (DSEC), Macao received around 4.95 million visitors in the first quarter of this year. This means an annual growth of 163 percent and represents 47.8 percent of visitors in 2019. Tourists from Mainland China grew 88.2 percent compared to last year (3.24 million), and from Hong Kong increased almost tenfold, to over 1.5 million. International visits (excluding Mainland China, Hong Kong and Taiwan) did not exceed 140,000, as the capacity of flights to and from Macau is still recovering.
Visitors from Mainland China made up about 65.4 percent of total visitors in the January-March 2023 period – they made up more than 70 percent before the pandemic. In contrast, the share of visitors from Hong Kong increased from 18 percent to 30.4 percent.
Andy Wu, president of the Macao Tourism Industry Association, notes that after the lifting of travel restrictions, the Hong Kong segment has recovered more quickly and has regained between 70 and 80 percent of volume, while it is still only regained about half of the Mainland China market.
“Although group tours from Mainland China have resumed, the total number of visitors so far has been significantly lower. Before the pandemic, the ratio between the number of visitors from Mainland China and the number of visitors from the ‘individual visit scheme’ was around 3:7, and now it is 2:8. In addition to the increase in the number of tourists [from Mainland China] under the individual visit regime, we also observed that visitors are younger and rely on social networks such as Xiaohongshu and Douyin to plan their itineraries. They are no longer confined to traditional tourist attractions and are more likely to visit other neighborhoods to experience local flavors and discover new photogenic spots.”
The Government of Macau has also been attentive to this trend, confirming in recent times that there have been signs of younger visitors, mainly female and aged between 18 and 35 years. On the other hand, only five percent come to Macau to gamble in casinos.
Looking for photogenic spots
Yang, from Zhongshan, Guangdong province, is part of the emerging tourist segment that has been identified by the authorities and the industry. On his two-day trip to Macau with friends in April, he visited areas such as Av. Horta e Costa and Rua da Praia do Manduco, in addition to the Cotai Strip. “We’ve visited Macau many times, so we’re not particularly interested in Avenida de Almeida Ribeiro and Ruins of S. Paulo. We just walked around and looked for interesting and photogenic places and restaurants in Xiaohongshu ”, he explained to our newspaper.
“We also found that prices in areas like Horta e Costa are cheaper than in Almeida Ribeiro or Cotai. We spent between 2,000 to 3,000 patacas on this trip,” he added. “I don’t think I’ll be doing much shopping except for gastronomic souvenirs like dried meat and almond cakes.”
Hong Kong tourists Phoebe and Mark also share a similar mindset, having opted for non-traditional offerings such as the Tap Siac Craft Fair.
“We are interested in this type of cultural and creative fairs. Some of the brands we know also joined this fair, so we decided to come and have a look”, said the couple in their early twenties.
The duo didn’t have any specific plans for their trip to Macau, but they did tempt the crowds. “We’ve seen some nice cafes on Youtube and Instagram, but if there are big talks maybe we’ll find other places”, they commented.
Taking into account the trend of younger tourists planning their itineraries online, Wong Fai, president of the Macao Leisure Tourism Innovation and Services Association, says that the industry and local companies will have to adjust the products and services of according to demand. “Young people place more importance on experiential activities rather than shopping. They also actively look for places of interest online to take beautiful photographs for social networks, ”he emphasizes.
Lower consumption power
The associative leader recognizes that visitors have been more cautious in spending after the pandemic. “We haven’t seen the return of large consumers yet, so global purchasing power is weaker than in the past”, he stresses.
The latest data on visitors’ extra-match spending for the first quarter of 2023 is not yet available. But in 2022, per capita expenditure of visitors increased by 0.4 percent year-on-year to MOP3,187, including a 4.1 percent increase in per capita expenditure of overnight visitors, to MOP6,004, and an increase of 29.3 percent in spending by overnight visitors to MOP1,011.
As for the type of expenses, purchases decreased. But after three years of difficulties, where local traders were left without customers and revenue for a whole day, everyone is satisfied with the gradual recovery.”
Community tourism
Although it has not yet returned to the daily average of 100,000 visitors, it notes that the association has seen “more visitors in the neighborhoods, and the volume exceeds pre-Covid times”. In his opinion, this fact demonstrates the effectiveness of community tourism policies and measures promoted by the administration and the local tourist industry, managing to divert visitor traffic from traditional tourist attractions to different neighborhoods.
To further facilitate the development of community tourism and divert tourists to stroll and spend in different neighborhoods of the city, the Board increased 2.6 percent year-on-year to 2,110 patacas; expenditure on food and beverages and accommodation decreased by 4.3 percent and 9.4 percent, to MOP488 and MOP428, respectively.
Mrs. Wong, owner of a traditional delicacies shop on Rua do Cunha, in Taipa, considers that the volume of customers has “almost” returned to the pre-pandemic level, with crowds on the famous street even outside the festive periods.
“But per capita spending is actually lower. Customers now only buy one or two items and spend up to MOP100. Before, they spent an average of 200 to 300 patacas,” she says. Compared to Mainland visitors, Hong Kong consumers are relatively more willing to spend right now, she adds.
The president of the Federation of Industry and Commerce of Macau Center and South Districts, Lei Cheok Kuan, says that “the consumption power of tourists from the Tourism Services (DST) approved the financing of 42 community tourism projects and events, which can be divided into three main areas: “Invigorating the community economy in the field of tourism”, “Promoting gastronomic culture” and “Maritime tourism”.
The main objective of the events in April and May is to promote the history, culture and other attractions of Macau, namely the “Origin of Characters” – Community Tourism Technology – Deepening Local Culture Trip, which allows participants to get to know Macau from past; and “Memories of the Past X Armazém Velho”, a thematic market and workshop with its own characteristics.
Taking into account the changes in the profile of tourists visiting Macau, Lei stresses that “in addition to improving products and services, local traders should also make good use of social networks to attract customers and take advantage of opportunities”.