Macau Ponders Monetary Incentives for Tourists to Visit Gambling Hub
Macau's economy is on an upward trend, with its casinos experiencing a surge in business post-COVID-19 restrictions. China is gradually returning to normalcy approximately two months after President Xi Jinping abolished the controversial "zero-COVID" policy.
The 2023 Chinese New Year was particularly profitable for casinos, and Macau aims to maintain this trajectory throughout the year. One strategy to achieve this goal, according to local authorities, is to provide financial aid to foreign visitors.
Macau is attempting to diversify its tourism appeal beyond casino gaming, targeting a broader spectrum of leisure and business travelers.
Macau introduced a bond exchange market towards the end of 2020, which is anticipated to attract fresh businesses to the region. Last year, Macau agreed to grant fresh tenders to its six casino operators in exchange for $13.5 billion in non-gaming investments during the 10-year license period.
Macau's latest approach to attract new tourists is an incentive program that reflects the promotional agreement offered to mainlanders.
Visitor Incentives
GGRAsia revealed that the Macau Government Tourism Office (MGTO) is considering subsidizing group tours for foreigners. Local officials stated that Macau may provide each foreign tourist arriving from Hong Kong, Taiwan, or other than mainland China with a daily allowance.
The MGTO representatives mentioned the proposal to offer international group travelers MOP350 (US$43.33) per person for a one-night stay, and MOP500 (US$61.90) for a two-night visit.
The incentive is limited to two nights. However, if a couple is traveling together as part of the group, they could receive around $124 for a two-night stay.
Casino room rates are recovering, and this bonus would greatly help many travelers. For instance, a two-night stay this weekend at MGM Cotai costs approximately $655, inclusive of taxes and fees.
The proposed subsidies for foreigners closely resemble the MGTO program already in place for mainlanders. Visitors from mainland China traveling in a group are currently afforded MOP250 (US$31) per night stayed.
China restarted group tours effective Tuesday, after a suspension of more than three years.
Macau defines a group as a minimum of 10 people following the same itinerary. Traveling in groups is popular in China, as the cost is usually considerably cheaper than traveling individually.
During the pandemic in 2021, when the mainland was still battling the virus, Macau's isolation allowed the enclave to remain free of the disease. That's when the MGTO issued a public subsidy to residents. This promotional initiative provided Macau residents with a one-time, $25 subsidy for a "staycation."
Foreigners are encouraged
Macau's casinos experienced an effective gaming tax increase to 40% under the enclave's revised regulatory framework. This tax could be reduced by up to 5% for gaming revenue generated by foreigners.
When the casinos received their new gaming concessions, they were informed that a 5% tax reduction could be granted to companies successful in attracting foreigners. Each casino's foreign-only gaming areas can petition the Macau government at the end of the year for the tax concession.
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