Key points:
- Labour Day Golden Week likely to see hotel occupancy around 90%
- Room rates softer compared with last year amid economic concerns
- Industry players expect growth in slot machine play over table games
Macau's casino hotels are preparing for the upcoming Labour Day Golden Week, but operators are bracing for pressure on room rates and weaker consumer spending, according to a report by Ming Pao Daily News.
Industry figures estimate that hotel occupancy could reach 90% during the mainland’s five-day holiday starting 1 May. However, average room prices are showing signs of decline compared with the same period last year. For example, standard rooms at Sofitel Macau at Ponte 16 are priced at around MOP$1,962 (US$243.5) this year, a 7.23% drop from MOP$2,115 last year.
Hotel properties under Galaxy Entertainment, Wynn Macau, MGM China and SJM Holdings are reporting high booking levels. Nevertheless, availability remains at upscale venues such as The Karl Lagerfeld Hotel, where rooms are priced at about MOP$4,679, compared to a weekday average of approximately MOP$2,000.
Official figures show that Macau's overall hotel room supply in February stood at around 44,000 rooms, down 3,000 from the same period last year.
Success Universe Group Deputy Chairman Ma Ho Man noted that downward pressure on room rates is being driven by an increase in hotel supply in nearby Hengqin and subdued consumer sentiment due to ongoing China-US trade tensions. Although visitor numbers are expected to remain strong, he warned that lower spending per visitor is likely, with tourists shifting towards slot machines rather than table games.
Veteran junket operator Lam Kai Kong observed that uncertainty around the trade war is making high-end players more cautious. He reported that casinos have been offering hotel incentives to attract VIP customers but lending from junkets has become increasingly conservative.
