Macau’s hospitality sector outpaces Hong Kong’s and Taiwan’s
Macau’s hotel room rates are higher than Hong Kong’s or Taiwan’s, and its occupancy rates are rising. The increase in cross-border tourism by China mainland travelers is boosting hotel revenue in Macau more than in Hong Kong or Taiwan, according to HVS. The latest quarterly report by HVS in Hong Kong on the Greater Chinese market compares the revenue and occupancy rates of hotels in Macau, Hong Kong, Taipei, Kaoshiung and Taichung.
Macau hotels are more profitable than Hong Kong or Taiwan hotels, Macau being among the few Chinese cities where hotel revenue grew in the third quarter of last year. HVS data show the average room rate here rose to 1,440 patacas (US$180) a night in the third quarter from 1,376 patacas a year earlier. The room rate here was 2.93 percent higher than the average rate in Hong Kong at current exchange rates, the rate there having been HK$1,359.
The average room rate in Taipei was NT$4,061 (1,069 patacas), the highest in Taiwan. Macau’s proximity – via a land border – to major feeder markets of the mainland’s Guangdong province, the enormous attraction of casino resorts for many Chinese tourists and the limited supply of hotel capacity here gives it a clear advantage over other competitors in Greater China.
Latest official data show that over 29 million tourists visited Macau last year, 18.6 million of them mainlanders. The HVS report says the average occupancy rate of Macau hotels rose to 90.3 percent in the third quarter. The figure was the highest in Greater China, the next-highest being Hong Kong’s 89.9 percent. The report says hotels in Macau make more average revenue per room per night than hotels elsewhere in Greater China.