Gaming drives high summer occupancy in hotels, but September dip expected

The hotel industry is experiencing a strong rebound this summer, with occupancy rates driven largely by of gaming tourists, according to hotelier Rutger Verschuren.

While July and August bookings have reached near-capacity, the industry is bracing for a drop in September.

“We had a bit of a challenging June, but July and August look fantastic,” Verschuren, vice-chairman of the Macau Hotel Association, said in an interview with the press on the sidelines of an event yesterday.

“I think none of us need to worry about occupancy. The typhoon was a little hiccup basically, but right away the hotels are back to high occupancy.”

Meanwhile, gaming resorts are leading the recovery, with occupancy rates in the 90 to 95% range.

Questioned by the Times whether these numbers reflect bookings purely by tourists, Verschuren estimated that “maybe 90 to 95% of the occupancy [at casino hotels] is occupied by potential gamblers,” who are often hosted by the resorts as part of casino marketing strategies.

“I don’t say all of them gamble,” he clarified, “but those are occupied by people who are targeted as potential gamblers.”

In contrast, non-gaming properties rely heavily on consumer choice.

“Every guest who comes here picks us because they really choose us,” he said, referring to bookings on the peninsula – particularly at hotels without casinos – as being purely made by tourists.

While room rates have not fully returned to 2019 levels, numbers remain healthy.

“Overall, we cannot complain at all. We are very happy this summer, and to see the international market coming back as well,” Verschuren added.

South Korea has emerged as a strong source market, helped by frequent direct flights.

In contrast, limited flight connectivity continues to hinder recovery from Japan and other markets.

However, he cautioned that numbers are expected to decline after the summer.

“We worry a bit about September,” Verschuren admitted.

“That’s traditionally when the occupancy drops – maybe by half – once the kids go back to school.”

However, the hotelier remains optimistic about the final quarter of the year, which includes holidays such as Golden Week and Christmas.

“From October to December, we also expect that the business will be good,” he said, citing government efforts to promote Macau overseas.