Interview by Armindo Neves
In response to the sharp decline in foot traffic around commercial areas following the recent closure of Macau’s 11 satellite casinos, Macau Central and Southern Districts Industrial and Commercial Federation Chairman Lei Cheok Kuan told the Post that the trend of “Northbound Travel for Macau Vehicles”, shifts in consumption patterns, and the phasing out of the satellite casinos are “irreversible”.
“Businesses must proactively seek change and improve their products and services to survive amid these transformations”, Lei said.
Lei made the remarks in a phone interview yesterday.
Lei said that consumer behaviour has evolved, with Generation Z tourists seeking immersive experiences and no longer distinguishing between “tourist areas” and “local living areas.” Businesses cannot rely solely on foot traffic to survive and must consider the uniqueness of their products, Lei said, pointing out that within the same neighbourhood, some shops enjoy long queues while others struggle for business – the key lies in product competitiveness.
Regarding the government, Lei acknowledged its efforts in promoting the economy but emphasised that policies needed to be more grounded and the business environment further optimised. Lei cited the example of eateries and bars officially required to close their outdoor seating by 9 p.m., which, he said, was hindering the development of the nighttime economy.
Lei also pointed out that merely setting up “da kat” (the Chinese term for photo op places) spots is insufficient. In Lei’s view, the government should complement these with dynamic activities and street business format planning to avoid homogenisation across entire streets – such as the current oversaturation of pharmacies – and provide online promotion support to help businesses upgrade.
Lei also said that while businesses must continuously optimise their products and operational strategies, the government should provide more flexible and detailed support in planning, facilities, and policy implementation. Together, they could create an appealing consumption environment, Lei said.
3-year transition to closing satellite casinos a signal for pragmatic responses from employers and employees
Regarding the impact of satellite casinos closures on surrounding businesses, Lei pointed out that the businesses had around three years to adapt to the changes – from the passage of the new “gaming law” in 2022 to the complete shutdown of satellite casinos at the end of last month – indicating that this was not a “one-size-fits-all” approach by the government. He emphasised that both employers and employees must make practical adjustments and actively respond to the structural changes in the market.
The 2022 law, officially known as “Legal Framework for the Operations of Casino Games of Chance,” allows the government to grant up to six gaming concessions.
The now-defunct “satellite casinos” were run by third parties in conjunction with three of the six concessionaires, respectively.
Lei said that the government has been working to improve the business environment, but, he stressed, policy formulation needs to adopt a longer-term perspective and regional planning approach, allowing businesses to see real prospects for development.
He also emphasised that while safeguarding their rights and interests, citizens should consider the overall economic development of the community, avoiding excessive assertion of rights that could hinder policy implementation and the economic vitality of their respective neighbourhoods.
Regarding the employment market, he pointed out that while the local unemployment rate remains low, some unemployed individuals may exhibit a tendency of “aiming high but lacking practical skills.”
According to the Statistics and Census Bureau (DSEC), Macau’s overall unemployment rate in September-November stood at 1.7 percent, while the unemployment rate for local residents amounted to 2.3 percent.
For example, Lei said, his jewellery shop once recruited a salesman through the Labour Affairs Bureau (DSAL) who turned out to have a passive attitude towards his job, highlighting the need for both employers and job seekers to be more realistic. He emphasised that if the business environment continues to shrink, employment opportunities will further decline. All sectors should collectively consider how to balance rights and duties to promote overall social development, Lei said.
Macau Central and Southern Districts Industrial and Commercial Federation Chairman-cum-Cherry (Group) Jeweller & Goldsmith Company Limited owner Lei Cheok Kuan poses in his jewellery shop on Rua de S. Paulo in the city centre yesterday. – Photo: Armindo Neves
