The Macau SAR government has announced that it is no longer considering the implementation of a tourist tax following the devastating impact to the city’s tourism and hospitality industries due to COVID-19.
The Director of the Macao Government Tourism Office (MGTO), Maria Helena de Senna Fernandes, had previously hinted that a tourist tax was unlikely after first touting the idea last year as a possible means of reducing growing congestion.
Macau’s tourism industry was heavily impacted by civil unrest in Hong Kong in the second half of 2019, which saw monthly visitor arrivals record double digit declines by the end of the year. Visitor numbers have since plummeted by more than 90% in the wake of COVID-19, from 2.85 million in January to just 210,000 in March.
An MGTO study found that “regulating the increase in visitor numbers by levying a tourist tax may not be the most effective measure applicable to Macau.” The study noted that many popular tourist cities around the world had opted instead to “promote the dispersal of visitors within the city and beyond” and focus on “improving urban infrastructure and facilities.”
The Macau government has stated a need to support recovery of the tourism industry through measures such as tax reduction and economic support.
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