Macau’s hospitality sector has undergone notable changes since the reopening of the city in January last year, according to an industry expert.
Lou Chi Leong, the president of Macau Hoteliers & Innkeepers Association, points out a noticeable trend toward younger hotel guests over the past year. Families are increasingly extending their stays, while individual travelers have made a strong comeback. However, group bookings still lag behind pre-pandemic levels.
Lou Chi Leong informed the local newspaper Macao Daily that the number of visitors to Macau exceeded 28 million last year, marking a significant improvement but still falling ‘far short’ of the pre-pandemic figure of nearly 40 million.
Given the labor-intensive nature of the hospitality sector, Lou recalls that thousands of hotel rooms had to close due to a labor shortage. He now believes that, through increased recruitment efforts and the hiring of non-resident workers, the industry is better equipped to handle the growing demand from visitors.
“With over 46,000 hotel rooms available across Macau, we believe that the industry’s tourism capacity has significantly improved compared to pre-pandemic levels.”
Lou also indicates that the hotel industry’s cost expenditure has increased by at least 10 percent compared to pre-pandemic levels. This is due to rising prices of daily necessities and higher expenditure on promotion. Meanwhile, he noted, “The tight labor market and high turnover over the past year have led to salary increases of around 2 to 3 percent.”
According to official statistical data, the average hotel room rate increased by 78.1 percent year-on-year, reaching MOP1,321 ($165). The average occupancy rate from January to November last year reached 81 percent.
Additionally, the number of hotel rooms recorded a 26 percent increase, totaling 46,300 as of November 30th.
