Taking a break is for accomplishing a longer journey: hospitality industry in Macao under the COVID-19 pandemic

Abstract

Purpose This paper aims to analyze how a real-time COVID-19 pandemic is impacting Macao’s hospitality industry, and illustrates why lessons from COVID-19 are an opportunity for further development for the city. Design/methodology/approach This case study highlights local government and hospitality industry responses to a real-time crisis. Academic studies, media news and reports have been collected to illustrate why the Macao’s response to the COVID-19 pandemic could be taken as a city case study example. Previous crisis experience provided guidance to Macao’s success in this pandemic. Findings Macao has succeeded in managing the adverse effects of COVID-19, illustrating the coexistence of challenges and opportunities from experiencing the epidemic. With no COVID-19 cases in the city, cross-border tourism with China resumed in September. Macao is undeniably over reliant on the gambling industry to provide tax income and employment, creating an unbalanced industrial structure. However, the Chinese and Macao Governments, the hospitality industry and other stakeholders, have presented high levels of engagement, unity and rational courses of action during the pandemic. This paper examines Macao’s two orientations – intra and post-coronavirus – which are shown to be instrumental in the city’s future tourism development. Practical implications As the paper is Macao-specific, some generalization may not be applicable. The lessons and strategies proposed in the paper may only be theoretically and temporarily workable in this real-time situation. However, as COVID-19 will remain for some time globally, the efficacy of the findings justifies further ongoing analysis and application beyond Macao. Originality/value The case offers a first-hand analysis on the governance of Macao to negate the impacts of COVID-19, enabling a comprehensive review on the practices and policies that were effective during the virus outbreak. There is reference for researchers and practitioners in the public policy domain, and particularly in the area of crisis management and destination resilience. The result is worthy of future exploration on how the mechanism of centralized government facilitates risk management, and the rebuilding of a tourism economy in a crisis context, comparing this to other national systems.