Key points:
- Exchange rate shifts may reduce spending by mainland visitors
- Sector urges wider adoption of visitor dispersion and incentive schemes
- Calls to utilise international IPs to encourage exploration beyond central districts
The recent weakening of the renminbi has drawn attention from Macau’s travel industry, with stakeholders calling for improved strategies to maintain tourist spending levels.
As reported by Macao Daily, Andy Wu, Chairman of the Travel Industry Council of Macau, said that the currency’s downward trend could dampen the purchasing power of mainland visitors. While overall travel interest remains strong, he cautioned that discretionary spending, particularly on higher-end retail items, may be affected by less favourable exchange rates.
Recent data shows the offshore renminbi has dropped to a historic low of 7.4287 against the US dollar. As the Macau pataca is linked to the Hong Kong dollar, this development has made it more expensive for mainland visitors to spend in the territory.
Wu explained that, in previous years, a stronger renminbi encouraged greater spending due to the perceived value. In the current climate, however, visitors are likely to exercise more caution. This may be particularly felt in the retail sector, where pressure is already mounting amid global economic uncertainty.
During the recent Ching Ming holiday, Macau saw average daily arrivals of over 130,000 visitors. With further holiday periods approaching, Wu urged that efforts should be made to convert foot traffic into meaningful economic activity.
He suggested enhancing the “attract tourists to districts” scheme by creating photogenic attractions in less-visited areas, potentially using international IPs. Additionally, he proposed that targeted incentives, such as prize draws or ticket giveaways for reaching spending thresholds, could help stimulate consumption and encourage repeat visits.
