OPINION – Branding the MSAR: A challenge for the coming future

By José Luis de Sales Marques

At midnight on 20th December 1999, Portugal and China marked a significant milestone in Macau’s history by establishing the Macau Special Administrative Region. The solemn and meticulously choreographed handover ceremony at the Light Pavilion—designed by architect Vicente Bravo and constructed as a fleeting yet symbolic piece of art—provided the perfect setting for this historic moment, as Macau’s status changed forever, returning to its motherland.

Who could have imagined then that, in just a quarter of a century, Macau would evolve from a culturally and historically rich tourist destination, burdened by a then-struggling economy, a fading industrial sector, and a gaming model seemingly at its limits, into what it is today: a world centre for tourism and leisure, boasting one of the wealthiest small economies on the planet?

Much has been said and written on the local, regional, and national factors and processes determining those successful transformations. It is also obvious that, in the last 25 years, Macau went from an almost quaint and forgotten place for international business—never reaching the Financial Times or Wall Street Journal—to being covered on a regular basis by the international media because it became a city with heavy foreign direct investment and a number of public companies listed in major stock exchanges.

The name Macau is synonymous with gaming revenues reaching figures at a scale never before seen at a global level—not even in the most famous of places: Las Vegas! It is rather obvious that the Macau economy projected itself from its niche at the Pearl River Delta to the larger international stage.

When we look at the supply side of the economy, at all the glittering and spectacular properties developed by gaming operators with gaming and non-gaming facilities, entertainment, and shopping centres featuring the most famous world brands, we see a totally new reality from what existed 25 years ago. The same applies to the dozen or more Michelin-starred restaurants as well as MICE facilities built to accommodate thousands of participants with the latest in technology and comfort.

Some world-class events that both the government and private sector offer—whether in sports, arts, music, or entertainment—are equally of great quality. The same must be said for the emphasis given to Macau’s tangible and intangible heritage, culture, and traditions. The World Heritage title bestowed on the Historic Centre by UNESCO in 2005, and the Creative City of Gastronomy designation given by the same entity in 2018, are testaments to the successful efforts invested by local and national authorities in making this region a truly precious and unique gem.

However, when we look at the demand for these fantastic attractions, it is obvious that there is much room for improvement; there is still a large untapped potential for Macau as an international destination.

Macau’s economic success is tied to the input of “net external demand”, whose weight in the region’s GDP can be seen in Chart 1 (light green portion of the bar chart). It is no secret that “external demand” for this region is associated with visitors coming mainly from the Chinese mainland for the purpose of gaming and tourism, which accounted for 67.5 per cent of all visitor arrivals in 2023. It is the main market and should firmly continue to be so. These visitations are driven not only by the travel experience itself but also by the emotion of knowing a city-region that had returned to the motherland.

Source: Macao Yearbook

Tourists visit the Ruins of St. Paul’s in south China’s Macau, Dec. 12, 2024. (Xinhua/Zhu Wei)

On the other hand, international tourists only accounted for 5.2 per cent of the total for the same period—a percentage so low that local authorities hope it will rise to 10 per cent, with extra promotional help provided by the gaming operators—although their main target remains gaming clientele—and practical incentives, such as covering the cost of the coach ticket between HK Airport and Macau for passengers holding foreign passports. This is all happening at a time when China is extending its visa-free policies to 30 days for a significant number of countries, therefore opening even more possibilities for a combination of Macau–Greater Bay Area visitation programmes that could entice travellers seeking diverse, rich experiences covering culture, lifestyle, health, environment, gastronomy, and religion—or just some relaxing holidays.

It is still unclear if the above-mentioned efforts are effective in reaching those objectives and how much more has to be done, or what the opportunity cost associated with it is. The unforgiving truth is that, over time, international tourist awareness of Macau has remained at a relatively low level.

Some might argue that it is a matter of old negative images of the city, or the lack of any image at all; high accommodation costs and other services; or problems with access, such as the absence of long-haul flights offered to Macau Airport. However, as some experts have highlighted in recent times, the reason might well be that this city-region does not have a proper and coherent branding strategy at the international level—one that is not only important for developing demand for tourism but also able to place it as a hub that is good for business, finance, and even education.

These areas are all crucial to the diversification drive that the current government, as well as its predecessors, have frequently emphasised in policy initiatives and declarations. Macau SAR has already developed a strong identity rooted in its history, rich cultural diversity, and economic success—an identity that must be conveyed to the world in an emotional and compelling manner through effective branding, a challenge the new administration will, hopefully, rise to meet.