Macau is finally achieving its long-awaited economic recovery as demand for casinos has increased significantly following the lifting of COVID-19 restrictions.
Almost two months after President Xi Jinping ended his controversial “zero Covid” policy, China is finally returning to a sense of normalcy.
Chinese New Year 2023 will be a prosperous year for casinos and the region, and Macau hopes to continue this business rally all year round.Local leaders see subsidies for foreigners as one possible way to reach that goal.
Macau is seeking to reduce its reliance on casinos and appeal to a wider range of leisure and business travelers.
Macau will debut its bond exchange in late 2020.This trading market is expected to create new businesses.And last year, Macau agreed to send new bids to six casino operators in exchange for $6 billion in non-gaming investments over a 10-year license term.
Macau's latest tourist attraction is an incentive scheme that mimics the promotional schemes given to mainland tourists.
Incentives for tourists
GGRAsia reported the news that the Macau Government Tourism Office (MGTO) is considering subsidizing group tours for foreigners.Local officials said they are considering offering a per diem allowance to each overnight traveler arriving in Macau from Hong Kong, Taiwan or anywhere outside mainland China.
An MGTO representative suggested the agency would give international group travelers MOP1 (US$1) per person for a one-night stay, and MOP350 (US$43.33) for a two-night visit. I said
Promo is limited to 2 nights.However, couples traveling together as part of a group can receive about $2 for a two-night stay.
As casino room rates continue to rebound, tips like this will help many travelers a lot.For example, a two-night stay at MGM Cotai this weekend is about $2, including taxes and fees.
The proposed subsidies for foreigners closely mimic MGTO programs already in place for mainlanders.Group venture visitors to Macau from mainland China will be awarded MOP250 (US$31) per night stayed.
China allowed group tours to resume valid Tuesday after being suspended for more than three years.
Macau considers groups to consist of at least 10 people following the same itinerary.Group travel is popular in China because the cost is generally much lower than traveling on your own.
While the mainland continued to battle coronavirus during the 2021 pandemic, Macau remained relatively uninfected due to its isolation.Therefore, MGTO issued a public subsidy to the residents.The promotional campaign provided Macau residents with a one-time $1 “stay” subsidy.
foreigner watching
Macau casinos have increased their effective gaming tax to 40% under the new regulatory environment.However, this tax is reduced by as much as 5% when playing by foreigners.
When casinos were handed over new gaming concessions, they were told there would be a 5% tax cut for companies that attracted enough foreigners.Foreigner-only gaming areas at each casino can apply for a tax reduction from the Macau government at the end of the year.
Comment