Macau, a city whose economy is deeply driven by tourism, has long regarded this sector as one of its key industries. For decades, the industry was governed by Decree-Law No. 48/98/M, enacted in 1998 and amended in 2004 and 2016. However, the rapid evolution of the tourism market brought some challenges, such as an excess of low-budget package tours (often marked by allegations of poor service quality and hidden costs), and the need to reform became evident.
To address these issues and modernise the regulatory framework, the Macau Legislative Assembly enacted Law No. 5/2025 (Law on the Activity of Travel Agencies and the Profession of Tour Guide), complemented by Administrative Regulation No. 1/2026.
Content and major changes
The new law introduces several important reforms to Macau’s tourism regulatory framework.
One is the simplification of licensing procedures for travel agencies. Under the new regime, the competence to grant licences has been transferred from the chief executive to the director of the Tourism Bureau. However, a prior inspection of operating facilities is no longer a requirement, thereby simplifying the licensing process.
The law also strengthens the oversight of inbound tour groups. Pre-arranged package tours organised outside Macau through ‘adhesion contracts’ must now be handled by a local receiving agency, ensuring greater accountability and compliance with local standards. At the same time, the requirement for the mandatory presence of a licensed tour guide on all package tours within Macau remains in force.
Another major reform addresses pricing practices and the regulation of optional activities. Local reception agencies are expressly prohibited from charging below-cost prices. Travel agencies and tour guides are under clearer and stricter obligations to disclose all itinerary details, pricing structures, inherent risks, and liabilities when offering optional activities “at your own expense”. Customers must be fully informed; any form of coercion or undue influence on their decision to participate is strictly prohibited. Moreover, a tour guide’s fulfilment of their duties cannot depend on whether participants choose to join the activities, ensuring that the rights and interests of tourists are consistently safeguarded.
This reform was complemented by the approval of Administrative Regulation No. 1/2026, which elaborates on the legislative framework by detailing specific legal requirements. Among its provisions are updated academic and professional training standards for positions such as the technical supervisor and licensed tourist guide, ensuring that individuals in these roles possess the necessary expertise to uphold service quality. The regulation also raises the minimum deposit and civil insurance thresholds required for the operation of travel agencies.
Legislative intent and economic impacts
Taken together, these legislative changes underscore the Macau government’s commitment to elevate the quality of services provided to tourists, reduce the risks of exploitation often associated with package tours, and foster a more sustainable and trustworthy tourism industry – remedying deficiencies inherent in the previous legislation.
In addition, stricter supervision is promoted through the mandatory involvement of a local receiving company for inbound tourist groups. This also offers favourable conditions for existing Macau travel agencies, generating more local employment opportunities. Further protection is granted to tourists, as stricter qualification requirements for agencies and tour guides, and the raising of minimum deposit and civil insurance, are in place.
The legislative intent seems to be twofold. On the one hand, the reform seeks to consolidate the role of established Macau travel agencies by ensuring they remain central actors in the tourism supply chain, strengthening domestic industry capacity; on the other, by imposing stricter qualification requirements on agencies and tour guides, this indicates a clear intention to prioritise professionalism and consumer protection over rapid market expansion.
This policy shift also aligns with Macau’s long-term goal of economic diversification, aiming to broaden the economy beyond its dependence on the tourism sector. While the higher entry requirements may limit the number of new players, they encourage potential entrepreneurs to explore opportunities in other sectors, such as those identified in Macau’s “1+4” diversification strategy – big health, modern finance, high technology, and conventions/exhibitions/sports and trade – while ensuring that those entering the tourism market contribute to a more specialised and sustainable industry.
