Prof. Davis Fong
Prof. Fung Kwan
Scholars Advocate Infrastructure Expansion to Increase Tourism Carrying Capacity
On May 3, 2025, Prof. Davis Fong, Director of Institute for the Study of Commercial Gaming (ISCG) and advisor to the Macao Economy team of the Asia-Pacific Academy of Economics and Management (APAEM) at the University of Macau (UM), along with Prof. Fung Kwan, Assistant Professor of Economics at the UM’s Faculty of Social Sciences and member of the Macao Economy team at APAEM, shared their insights on boosting Macao’s tourism capacity in Macao Daily News.
Macao’s economy showed signs of contraction in the first quarter of this year, with preliminary GDP figures reaching MOP 99.78 billion, reflecting a year-on-year real decline of 1.3%. Prof. Fong analyzed that while Macao’s economy experienced rapid post-pandemic recovery, the current slowdown aligns with the cyclical nature of the tourism industry. He projected that the full-year economic performance may remain on par with last year. However, it is noteworthy that despite an 11% increase in visitor arrivals, non-gaming spending has declined, indicating a bottleneck in Macao’s tourism capacity.
To address this challenge, Prof. Fong proposed several recommendations. Macao currently has 45,000 hotel rooms, with occupancy rates exceeding 95% during peak seasons, signaling a tight supply that may lead to lost consumption opportunities among tourists. Therefore, expanding urban infrastructure—including increasing hotel room inventory, improving transportation networks, and enhancing border checkpoint efficiency—is essential to accommodate the industry’s shift from VIP-centric to mass-market tourism. Additionally, Macao’s limited options for nighttime non-gaming activities present an opportunity; strengthening evening entertainment offerings could not only encourage longer stays but also stimulate spending.
Prof. Kwan also highlighted that global economic conditions, mainland residents’ income levels, and RMB exchange rate fluctuations may impact Macao’s future economic performance. Given the constraints of the local market, revitalizing the economy hinges on expanding service exports, particularly by attracting more international visitors. This would reduce reliance on a single source market and introduce new consumption patterns, injecting fresh momentum into Macao’s economic growth.
For further details, please read the original news via this link.