Casino restrictions could slash taxi license price

License prices could be lower with the introduction of 200 more taxis and be a positive incentive for new drivers, the Macau Taxi Federation vice-president Wong Ping Kei, said

The government intends to issue 200 taxi licenses but lawmaker Chan Meng Kam has called for restrictions to be imposed on the new cabs to prevent them from cramming in front of casinos. The taxi industry shares his views but warns that such measures could bring about a huge price fall for the new licenses.
Chan made his proposal in an enquiry to the government, to ensure the new batch of taxis serve all parts of Macau instead of the hotel-casinos only. The lawmaker said there is widespread dissatisfaction among the public that it is getting more and more difficult to take a taxi, especially in old neighbourhoods.
Meanwhile taxi industry executives hold that the new licenses will be a viable measure to alleviate taxi insufficiency, but warned that any limitations on their operation zones will come with a price.
Speaking to Macau Daily Times, the vice-president of Macau Taxi Federation, Wong Ping Kei, said he agrees with Chan on imposing restrictions but proposed that the new taxis have a unique appearance, such as red or other colours in order to distinguish them from the traditional black and yellow ones.
“Otherwise the authority will not be able to stop newcomers from cramming in front of hotels and casinos,” he said.
But Wong warned that there will be negative effects, starting with a dramatic fall of license prices. “The current ones stand at around MOP 800,000 to MOP 1 million. I expect it to fall by at least 20 percent if those restrictions are imposed,” he said.

Resistance expected

He also pointed out that the new licenses would also mean more difficulties in recruiting cab drivers as many of them were head-hunted by bus companies that offer more attractive salaries.
But, on the other hand, a possible fall of the license prices would mean lower operation costs, which may prove to be a positive incentive for new drivers. He estimates that around 500 news drivers were needed for the 200 extra cabs, so the government should consider issuing the licences gradually to avoid a sudden shortfall of manpower.
The manager of Vang Iek Radio-Taxi Company – which runs the yellow cabs – also agreed with Chan Meng Kam’s proposal. As a personal view, Mário Ferreira Sin believes the restrictions, if imposed, will ensure that all Macau citizens share the transportation benefit.
But, speaking to Macau Daily Times as an executive, he also expects some kind of resistance from the industry against the possible restrictions. He urged authorities to offer taxi drivers some kind of incentive such as deduction of tax and license fees.
Ferreira also asked authorities to come up with concrete measures and relevant details and consult with the industry over the restrictions.
According to the Transport Bureau’s statistics, there are currently 990 taxis licensed in the territory, including 100 yellow taxis.                 

S.C.