Macao, China – Dan McAulay, like many fellow pilots, faced furlough during the pandemic.
Being located in Macao, a city known for its stringent COVID-19 measures, he found himself with ample free time.
McAulay and his wife, Rebeca Fellini, turned to distilling alcohol as a lockdown hobby, which eventually evolved into their own gin brand, Owl Man. The name cleverly plays on the Chinese pronunciation of Macao.
While McAulay has resumed his aviation career with Air Macau, Fellini manages the day-to-day operations of the distillery.
Despite their business originating during the lockdown period, they, along with numerous other enterprises in the city, place their hopes on the revival of tourism.
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An unexpected boon?
Macao, located just an hour’s ferry ride from Hong Kong, stands as the sole region in China where gambling is legally permitted.
Often referred to as the “Vegas of Asia,” Macao would frequently witness affluent high-rollers, known as “whales,” arriving by helicopter for brief gambling sessions at the craps table before the pandemic.
Consequently, the city’s main economy centers around its casinos and the associated businesses, ranging from hotels and spas to upscale retail establishments.
Despite having a population of approximately 600,000 residents, significantly smaller than Hong Kong’s seven million, Macao generates six times the revenue of Las Vegas in a typical year.
Before the pandemic, 80% of the government revenue in Macao relied on the gaming industry. Prominent players such as Wynn, Venetian, and MGM maintain a notable presence in the city.
The advent of Covid disrupted this thriving ecosystem, with intermittent lockdowns and restricted travel from the mainland and Hong Kong severely impacting Macao’s primary income source.
The Lisboa stands as one of Macao’s renowned and identifiable casinos
“The government has recognized the need to diversify efforts beyond gaming and focus on gastronomy,” McAulay explains.
“Being the sole distillery in Macao has proven to be tremendously advantageous for us. Local food and beverage companies receive support and encouragement from hotels and casinos, resulting in a strong foundation for our business.”
McAulay is not the sole entrepreneur who utilized the tourism slowdown as an opportunity to reassess their business model.
Asai, known professionally by his first name, owns multiple Portuguese restaurants and cafes throughout the region. Macao, being a former Portuguese colony, is renowned for its culinary traditions, including egg tarts, African chicken, and bacalao (codfish fritters).
However, Asai aims to highlight the vibrant and active Portuguese community in Macao, offering visitors a broader range of culinary experiences beyond the familiar favourites.
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Establishments such as Lord Stow’s and Margaret’s draw long queues, as their egg custard tarts, known as pasteis de natas in Portuguese, have become highly sought-after souvenirs from Macao.
Pasteis de Chaves, a trendy café reminiscent of a Brooklyn setting, not only offers egg tarts but also distinguishes itself with its signature beef stuffed pastries, providing a savory alternative to the popular sweet delicacy.
Located across the street, Three Sardines presents an intimate and atmospheric ambiance, specializing in petiscos, the Portuguese equivalent of tapas. Their menu features delectable small plates like fried octopus and grilled peppers.
According to Asai, who has resided in Macao for 18 years and navigated through the pandemic, competition among Portuguese restaurants is fierce. However, his focus on delivering more authentic and distinctive experiences has carved out a niche, contributing to their survival during challenging times.
Chef Pedro Almeida skilfully tends to the bar at Three Sardines
Now, along with many other local business owners, he is redirecting his attention outward after several years, as tourists gradually return to Macao.
Similar to Owl Man, Asai’s restaurant group has received government assistance in line with Macao’s efforts to diversify its food and beverage landscape.
As an example, Asai and head chef Pedro Almeida collaborated with the Macau Government Tourist Office (MGTO) on a video that delves into the origins of egg tarts and highlights the distinctions between those made in Macao and Portugal.
Emerging and Noteworthy
As the initial influx of international tourists returned to Macao in February 2023, significant transformations became apparent.
Numerous local eateries shuttered during the lockdown, and those that resumed operations encountered challenges in recruiting staff due to a substantial outflow of workers permanently departing the city.
Simultaneously, new attractions have emerged as casinos strive to diversify their offerings and cater to a more family-oriented demographic.
In January 2023, the Lisboeta casino complex in Taipa introduced ZipCity, Macao’s first outdoor zip line. The timing proved fortuitous, as the Lunar New Year brought an influx of mainland Chinese tourists to the city. A company representative reported that ZipCity operated at “90% capacity” during the holiday week.
The ZipCity zip line spans a length of 338 meters (approximately 1,100 feet)
Despite the pandemic, construction projects were completed, albeit with potential delays.
The Venetian welcomed the popular Japanese immersive art experience, TeamLab, in June 2020, while The Londoner, a British-themed resort featuring David Beckham-designed penthouse suites, opened in 2021.
The iconic ruins of St. Paul’s Church have been rejuvenated with an on-site VR experience, allowing visitors to explore its historical periods.
To revitalize tourism, the city has introduced various incentives. For instance, ferry travelers from Hong Kong receive a buy-one-get-one free boat ticket when staying at least one night in a hotel, encouraging longer stays.
Most businesses in Macao, including taxi drivers, accept Hong Kong dollars, while the same reciprocity is not common in Hong Kong with Macanese pataca.
Macao’s tourism authority has also launched programs targeting international travelers, featuring discounted package trips.
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“Vibrant scenes unfold: Macao experiences bustling activity on the ground.”
“Weekend ferries from Hong Kong are fully booked, and popular areas like Senado Square and Guia Fortress are teeming with visitors, contributing to the liveliness of the city.”
“Even the casinos are thriving. During a recent mid-week visit, both MGM and Venetian casinos were bustling with enthusiastic gamblers and curious onlookers.”
“While the mask mandate was lifted on February 26 in Macao, and a week later in Hong Kong, many casino-goers still opted to wear masks indoors, particularly at crowded blackjack tables.”
“Currently, regional tourism dominates the landscape.”
“Data from Macao’s tourism authority reveals that the majority of visitors in January 2023 originated from mainland China, Hong Kong, Taiwan, the Philippines, and Indonesia.”
“In January 2019, Macao welcomed 3.4 million tourists, primarily from mainland China. However, in January 2023, the number decreased to 1.4 million, with the majority visiting during the Lunar New Year holiday.”
“Air Macau, the hometown airline, has been gradually increasing its capacity by adding more flights from Singapore and Taipei, two major markets for Macao. Additional routes to mainland China will be reintroduced by March 26.”
“Low-cost Asian carriers such as Cambodia Airways and Thai Vietjet have also resumed their pre-pandemic air connections.”
“According to McAulay, co-founder of Owl Man, the local hotels and casinos have witnessed a faster-than-anticipated recovery, surpassing their fourth-quarter predictions. This resurgence is revitalizing the industry.”
Story by Lilit Marcus, photos by Noemi Cassanelli, CNN
Updated 10:20 PM EDT, Tue March 14, 2023
