Aria by Chef D, a small but popular South African restaurant near the Ruins of St. Paul, is often fully booked on weekends. With such strong demand, founder Denver Govender has long considered expanding: “We’ve been looking for a new space for some time, but haven’t yet found the right location,” he admits, noting that the government’s decision to reopen applications for outdoor terraces creates new possibilities: “As we consider expanding, this new policy is a real advantage. Now we can look for places with outdoor space and create a better dining atmosphere.”
For Chan Chak Mo, president of the United Association of Food and Beverage Merchants of Macau, European tourist cities are full of terraces, allowing visitors to relax by monuments. Although Macau has potential, he regrets that no new licenses had been issued for many years.
“In cities like Milan or Paris, you see people drinking coffee outdoors at every landmark,” Chan said.
In addition to space limitations, Govender admits rental costs remain a burden: “Although rents have dropped a little, many properties require a transfer fee — sometimes above 100 to 200 thousand patacas. On top of that, tenants must completely renovate the premises, which is a major expense.” The entrepreneur also hopes that “government policies really help SMEs and reduce cost pressures. The terrace license is only the first step, but at least it gives us some hope.”
Atmosphere and Vitality
Local brand Woop Woop, specializing in light meals, coffee and desserts, has three shops in Macau: near the Ruins of St. Paul, in Taipa Village, and at One Oasis in Coloane. Owner Ivan Pun told PLATAFORMA that the Taipa branch had long wanted to have a terrace.
“The atmosphere is relatively calm — perfect for two or three small tables. In the past, because of the rules, we didn’t dare place tables and chairs outside for fear of fines. But many customers would take their food and sit outside anyway. Now that we can apply legally, it’s a positive change,” he explains.
Pun adds that a terrace is not just about extra seating: “It’s not just adding tables, the whole atmosphere changes. Macau’s old buildings, combined with terraces, would give the city more vitality. I was recently in Paris and almost every restaurant had customers sitting outside. That’s the spirit of a city.”
As for costs, he considers the license fee reasonable: “For an area under 30 m², the annual fee is just over one thousand patacas. With a small rent increase, the improvement in business makes up for it.”
Regarding the restaurant market in Macau, Pun admits that location alone is no longer enough: “In the past we thought opening near the Ruins of St. Paul guaranteed lots of customers, but that has changed. Today you need to attract people through social media and marketing; being an ‘old brand’ is no longer enough to survive.”
More Measures Needed as a Solution
Chan Chak Mo emphasizes that reopening the terrace licensing scheme had long been a demand of the sector. He sees it as progress, but only a starting point: “A tourist city needs the atmosphere that terraces create. If Macau wants to be an attractive destination, it can’t rely only on casinos — it needs a greater diversity of experiences.” He further highlights that terraces can bring life to local neighborhoods and meet visitors’ expectations of leisure culture.
For Chan, it cannot be guaranteed that the government’s decision to reopen licenses for terraces, after 16 years, is directly related to the closure of satellite casinos at the end of the year, but he admits that “it is certainly one of the factors.”
According to official statistics, visitor spending unrelated to gaming reached 18.25 billion patacas in the second quarter of 2025, up 4.6% from the previous year. However, per capita spending fell 12.3% to 1,950 patacas. Chan is not concerned: “It’s a structural issue. Total spending is growing, but consumption patterns have changed.”
And he concludes: “Opening applications for terraces alone does not solve the sector’s problems. For a real solution, we need twenty additional measures — adjusting the rent structure, improving the distribution of visitor flows, encouraging neighborhood development and much more. One single policy is not enough to sustain the whole industry.”
The resumption of license issuance is currently in a pilot phase, according to the IAM. Restaurants and bars can apply, but must comply with rules such as time limits and a ban on sound equipment. PLATAFORMA questioned the department about the process but had received no response by the time this edition went to print.
