Macau Business Editorial |July 2023| By José Carlos Matias – Director
In 2022, a report by the United Nations Development Program warned of global disparity in post-pandemic economic recovery threatening to widen inequalities across Asia and the Pacific. More recently, in February 2023, the UN Commission for Social Development again highlighted “widening inequality gaps and crises in the labour market exacerbated by the COVID-19 pandemic.”
The view from here, in July 2023, shows Macau in undoubtedly a much better place, as the city enjoys a robust recovery fuelled by unflagging pent-up demand. Even earlier, during the pandemic, the SAR’s affluent reserves shielded it from certain dire social circumstances experienced by many other countries and regions around the world.
The restoration of cross-border mobility and the revival of tourism have been a boon for the city’s economy across the board. Measures such as the recent Northbound Travel for Macau Vehicles policy have opened doors to unprecedented connectivity. This has sparked enthusiasm among many residents who eagerly spend their weekends and their money in the mainland, relishing the amenities and shopping and dining options available in the neighbouring province. This is a welcome move that provides local residents with first-hand knowledge and a better understanding of the remarkable developmental strides that have been achieved in the Greater Bay Area.
In spite of these positive developments, however, the recovery map has begun to reveal disparities, showing this measure to be something of a double-edged sword. While integrated resorts and shops located in tourist spots reap abundant benefits from increased visitation, small businesses in specific sectors such as retail or food service operating in residential districts face a different reality, with sudden loss of income, as depicted in two features published in this issue of Macau Business. One can argue this is an expected outcome of increased mobility and competition and that small businesses must adapt and innovate.
While that is true, there is also a case to be made for assisting and protecting the local SME fabric. It’s important to ensure a win-win and not a zero-sum game. How could that be achieved? Perhaps, through a mixed package that combines direct and indirect stimuli targeted at local consumption with an assistance plan to equip these businesses with value-added tools, such as savvy usage of mainland social media platforms. Bolder moves to redirect visitor flows within the city from highly congested areas to some of the other, older neighbourhoods and residential zones would be critical, as well. The government, society and the business community need to acknowledge these uneven recovery patterns and together seek ways to ensure a balanced business environment alongside employment security and stability.
The roll of the MICE
The city’s economic recovery is evident not only in the influx of visitors, but also in the resurgence of robust MICE (Meetings, Incentives, Conferences and Exhibitions) activities, set to flourish even more in the second half of the year. The return of international trade shows like G2E Asia, taking place this month in a mixed format alongside the newly launched Asian IR Expo, and the magnitude of this year’s Macau International Travel (Industry) Expo and International Infrastructure Investment and Construction Forum, both held in June, bode well for numerous additional international events.
In all of this, the ever-expanding people-to-people links, enhanced by deeper involvement from the gaming concessionaires, networks and exchanges, bring added value with anticipated long-term ripple effects. After all, within the “1+4” diversification strategy, MICE serves as a pivotal pillar offering the city greater opportunities to make immediate, tangible leaps forward.
