The latest data released by Macau’s Statistics and Census Service (DSEC) reveals a mixed performance for the city’s hotel industry in July. While there have been noticeable changes in occupancy rates and visitor numbers compared to previous periods, the overall trend showcases both growth and areas of concern for the hospitality sector.
Occupancy Rates Show Varied Trends Across Hotel Categories
In July, Macau’s hotels experienced a slight decline in average occupancy rates year-on-year but saw an improvement compared to the previous month. The overall occupancy rate for July dropped by 1.0 percentage point year-on-year to 88.4%. However, when compared to June, there was a notable increase of 5.7 percentage points. This indicates a recovery trend following the mid-year slump, although the recovery is not yet strong enough to surpass the previous year’s levels.
Five-Star Hotels
These establishments reported the highest occupancy rate in July at 91.9%. Despite this being the best performance among all hotel categories, it represents a slight year-on-year decrease of 0.4 percentage points.
Four-Star Hotels
These hotels saw a more significant decline, with an occupancy rate of 80.5%, down by 6.1 percentage points compared to the same month last year. This suggests that four-star hotels are facing stiffer competition or challenges in attracting guests compared to five-star establishments.
Three-Star Hotels
In contrast, three-star hotels reported an occupancy rate of 86.6%, which is an increase of 5.6 percentage points year-on-year. This rise indicates a growing preference or market shift towards more budget-friendly accommodations among visitors.
Total Number of Hotel Occupants Decreases, Despite Increased International Visitors
The total number of hotel occupants in July decreased by 5.9% year-on-year, amounting to 1,227,000 guests. This figure is equivalent to 98.0% of the number of occupants recorded in the same period of 2019, indicating a near-full recovery to pre-pandemic levels in terms of overall guest numbers.
Interestingly, while the total number of occupants has dropped, the number of international visitors has shown a significant increase. In July, Macau welcomed approximately 76,000 international guests, marking a year-on-year increase of 24.7%. Among these international visitors, South Korea was the leading source country, contributing 24,000 guests, which is a substantial increase of 43.6% from the previous year.
This rise in international visitors, particularly from South Korea, could be attributed to targeted marketing efforts or improved travel conditions and agreements between Macau and these countries.
Average Length of Stay Remains Steady with Slight Improvement Over 2019
The average length of stay for hotel guests in July remained unchanged year-on-year at 1.6 nights. However, when compared to the same period in 2019, there was an increase of 0.2 nights. This slight improvement suggests that while the number of guests may have decreased, those who are visiting are choosing to stay a little longer, which could be beneficial for the hotel industry in terms of revenue per guest.
Positive Trends in the First Seven Months of the Year
Looking at the broader picture, the average room occupancy rate of hotel establishments in Macau for the first seven months of the year increased by 4.9 percentage points year-on-year, reaching 84.6%. This overall growth is a positive sign, indicating that despite the monthly fluctuations, the market is experiencing a general uptrend in occupancy rates.
During the same period, the total number of residents staying in hotels increased by 15.8% to 8,505,000. The average length of stay also remained consistent at 1.7 nights, suggesting stable demand and guest behavior patterns over the first half of the year.
Tour Group Visitors Surge, With Significant Increases from Mainland China and International Markets
The number of tour group visitors to Macau has surged dramatically in the first seven months of the year. A total of 171,000 tour group visitors were recorded, marking a year-on-year increase of 150%. This resurgence of group travel is a positive indicator of Macau’s recovering tourism sector.
Among these visitors, those from mainland China constituted the majority, with their numbers increasing by 130% to 1 million. The significant growth in visitors from the mainland highlights the importance of this market to Macau’s tourism and hospitality industry.
Additionally, the number of international tourists visiting Macau in tour groups saw a staggering increase of 460%, reaching 118,000. This remarkable rise reflects a robust recovery and growing interest from international markets, potentially spurred by eased travel restrictions and pent-up travel demand.
The data from Macau’s Statistics and Census Service presents a nuanced picture of the city’s hotel and tourism industry. While there are areas of decline, such as the overall drop in the number of hotel occupants and the decreased occupancy rates for certain hotel categories, there are also several encouraging signs. The increase in international visitors, the longer average stays, and the surge in tour group visitors all point towards a recovering and evolving market.