Hotels report strong summer, eye Golden Week growth

Macau’s hotel sector reported a strong summer performance, with July and August exceeding expectations, according to Rutger Verschuren, vice chairman of the Macau Hotel Association.

Verschuren, also the general manager of Artyzen Grand Lapa Macau, attributed the success to coordinated efforts by hotels, integrated resorts, and the government, noting that the months set a positive foundation for the rest of the year.

“Well, I think we can look back at a very successful summer. July was excellent and August was even better,” he told the press on the sidelines of an event yesterday.

While the summer months were dominated by family travelers, September is expected to see a shift toward elderly visitors and couples as schools and businesses resume.

Meanwhile, the sector also reported lower spending despite high visitor numbers.

“We did see actually maybe less spending… we also see that the spending on the food and beverage in the hotels is a bit less. […] But we understand the situation worldwide and also in our neighboring regions. We are fine with that,” he added.

Differences were noted between gaming and non-gaming hotels.

“Even though many integrated resorts invite guests to come to play in the casino and there will be an internal room rate… while non-gaming hotels will have to fight for each and every guest to have another reason besides gaming to stay with them,” the executive explained.

The hotelier said that hotels on the peninsula attract visitors interested in culture, history, and street life, while Cotai hotels draw shoppers and diners.

Regarding the upcoming Golden Week and Mid-Autumn Festival, the industry is optimistic, calling it a “Platinum Week” as the two holidays coincide. However, the hotelier noted it is unfortunate they fall together, since hotels usually prefer them to be spaced apart to maximize business.

Meanwhile, concerns remain over the closure of satellite casinos, where nine of the current 11 satellite casinos are set to close their doors end of the year for good following the three-year “transitional period” granted by the government for the reorganization of the gaming venues.

According to Verschuren, the sector is seeing the rate drop for those hotels, noting that it could be the start of a “price war potentially because there’s about 2,300 rooms on the market which will be turning from a casino hotel to a non-casino hotel.” Times  Reporter