Hengqin’s hotel sector boosted by new policy measures

On The Agenda

Hengqin has unveiled a series of new policy measures aimed at boosting its hotel industry. The initiatives come at the heels of Hengqin-Macau’s multiple entry visas, which are expected to drive increased demand for the island’s hotels.

The new policies, outlined in an official document published late last month, are designed to facilitate the growth of the local hotel sector. A key measure allows vacant office buildings to be converted into hotels, which provides a new avenue for development.

Hengqin’s Economic Development Bureau and Urban Planning and Construction Bureau will support hotels seeking to renovate and upgrade their facilities. This assistance includes financial resources to help hotels enhance their services and attract more visitors.

Applicants can apply for hotel conversions for a minimum of eight years. The hotel operation period must not exceed the applicable land use term. If needed, extensions can be requested three months before the eight-year period ends. Alternatively, the hotel conversion can be terminated. The policies will be in effect for two years, replacing the previous guidelines issued in April 2024.

Eligibility criteria for development has been expanded beyond vacant commercial and office properties to include completed buildings designated for commercial, business, cultural, creative, high-tech, and scientific research purposes. Vacant buildings with at least 50 rooms on continuous floors can apply for temporary hotel conversion, provided they meet safety and fire requirements.

The implementation of these measures coincides with the introduction of a Hengqin-Macau multiple entry visa for mainland Chinese tourists in group tours. Previously, these groups were limited to single-entry visas. This new arrangement will allow for mainland Chinese tour groups to visit the SAR during the day and stay overnight in Hengqin where accommodation is comparatively more affordable.

Real estate experts believe the new policies could help address Hengqin’s current hotel shortage, particularly the lack of mid-range budget accommodation options. With over one million square meters of vacant commercial properties with conversion potential, many developers have already started renovations.

Chen Ruifan from Centaline Property Agency echoed this sentiment, pointing out that Hengqin has hotel classifications on both ends of the spectrum, but lacks mid-range budget accommodation options. “One is the high-end five-star or above hotels, the other is the B&B, and there are actually no three-star and four-star hotels,” she said. 

The new policies are part of a broader strategy to develop Hengqin as a major tourist destination. These policies also aim to create a more flexible and long-term business environment, attracting investors and promoting hotel development in the region.

The measures are effective until April 30, 2026, providing a clear timeline for applications. Nadia Shaw