A ROOM boom will be descending on Macau before the year is over, but not all travel agencies are predicting a reduction in room rates in the face of heightened competition.
Galaxy Macau will be opening in four days’ time, adding 2,200 keys to the destination’s room inventory through Galaxy Hotel, Hotel Okura Macau and Banyan Tree Macau, while the 4,000-room Sheraton Macao Hotel and 341-room St Regis Macao will be opening on the Cotai Strip by year-end.
Singapore’s CTC Travel vice president (Private Collection & MICE), Dennis Soon, said strong demand in Macau, especially during the weekends when room rates are double that of weekday rates, would prevent prices from slipping substantially.
Soon cited Singapore as an example of added inventory having little impact on escalating rates. “Marina Bay Sands added (2,561) rooms, but room rates at other hotels in the country are still climbing,” he said.
Richard Yu, inbound/MICE manager of travel agency and DMC Macau.com, said: “I wish room rates would fall. Macau would then be in a better position to encourage longer stays by leisure and incentive groups. Groups now tend to visit Macau for a day, and proceed to Zhuhai or Zhongshan in China for the rest of their programme.”
“But I doubt the international hotel brands will reduce rates much in reaction to competition because they have a brand image to maintain,” he added.
Charles Leong, managing director of Macau Government Tourist Office (MGTO) Singapore, remains optimistic, steadfastly believing that the expansion of Macau’s room supply will “create great competition for the hotels and great bargains for consumers”.
“When you have 6,500 more rooms coming into Macau, even if demand is high, room rates are bound to soften,” he argued.
