Maria Helena de Senna Fernandes (pictured), director of the Macau Government Tourist Office, said she expects the city’s hotel occupancy rate to improve in the coming months. Hotel occupancy rate stood at 83.9 percent in May, down 6.4 percent from a year earlier, according to official data.
“The numbers in March and in April – especially in March – were not very good for [the Macau] tourism [industry]. In March, [hotel occupancy rate] fell by 13 percent [year-on-year]. In April, the numbers improved and the feedback we have from the private sector is that it [hotel occupancy rate] is improving,” Ms Senna Fernandes told reporters on Wednesday, according to the Portuguese-language service of Rádio Macau.
“The figures for May are slightly better than in previous months,” she added.
Visitor arrivals to Macau increased by 0.9 percent year-on-year to 2.55 million in May, according to data from the city’s Statistics and Census Service released on Tuesday.
Total visitor arrivals to Macau in the five months to May 31 however are down by 2.7 percent from the prior-year period, to 12.51 million. March was the lowest aggregate monthly figure in two and a half years, according to government data.
Ms Senna Fernandes said she expects room prices to fall with the opening of new hotels. In May, the average room rate in Macau was MOP1,485 (US$186), down by 7.5 percent from a year ago, show data from the Macau Government Tourist Office.
A report from Morgan Stanley Asia Ltd analysts Praveen Choudhary and Alex Poon suggest there might be other reasons for the declining room rates.
“Most [casino] operators have excess hotel room inventories because junkets are reserving fewer rooms for VIPs (down from 80-90 percent to 30-40 percent of the total number of hotel rooms) and premium mass customers are visiting Macau less,” the analysts said in a report on Wednesday.
“They [casino operators] started slashing prices to attract incremental customers. Hence, in the last few months, we have seen hotel RevPAR [revenue per available room] (mainly because of falling occupancy) and EBITDA [earnings before interest, taxation, depreciation and amortisation] margins coming down,” they added.
Jan 19, 2018Australian slot machine maker Ainsworth Game Technology Ltd announced on Thursday that Mike Dreitzer, president of Ainsworth Game North America, has resigned. Mr Dreitzer will leave the company on...
Jan 18, 2018
Dec 29, 2017It could be 2024 before a casino resort is opened in Japan,...
Dec 27, 2017The year 2017 could prove to have been a turning point in...
Oct 25, 2017The deployment of radio frequency identification (RFID)...
”The casino [at Jeju Shinhwa World] has been totally finished since December”
Executive vice president, casino, at Landing Entertainment Korea