Tourism | Hotels cut Labor Day room rates

Local resorts are slashing room prices by up to 30 percent to cope with the competition this coming Labor Day weekend, reported the Hong Kong Economic Journal, amid an increased supply of rooms in the market.
Observers have noted an increase in casino resort discounts of late. Earlier this month, Deutsche Bank’s Karen Tang cautioned that a hotel price war would soon be in full swing.
A total of five new hotels have entered the market since last year’s Labor Day weekend, providing more than 3,500 additional rooms combined. The sharp increase in supply heralds the coming of newer resorts that will open later this year, adding further strain to the struggling industry. As casino operators seek to maximize their market share and occupancy rates, analysts reckon that the MSAR can expect an abundance of sales promotions and price slashing.