AN AUSTERITY drive led by the Chinese government as well as rising regional competition has impinged on Macau’s MICE traffic.
Penny Yiu, assistant director of sales, The Westin Resort Macau, said: “We had strong business from China in 2012, but since the government’s budget cut, we have seen a drop of some 20 per cent in MICE enquiries.
“Furthermore, regional competition is intensifying, as Chinese MICE groups with bigger budgets now prefer other cities in South-east Asia.”
Observing a similar trend was Fanny Ho, general manager, APlus PR & Advertising, which handles business and consumer shows.
She said: “Chinese MICE groups with a few hundred to 1,000 pax were common last year. But since early this year, the number of such large groups (from government and private sectors) has dropped. In fact, we have not had any Chinese groups this year, with only a potential group that may come in May.”
Adding to the strain is the January opening of the 2,067-room Earth Tower at Sands Cotai Central.
Yiu revealed: “The (surge in room count) has created a price war in Macau. Many hotels, not just ours, have seen room rates drop from four to three digits.”
Best Western Hotel Taipa Macau has also seen rates going south. Director of sales, Fang Lei, however, remains positive. She said: “Rates were too high previously and that scared many visitors away. The current or lower rates will be more sustainable in the long run.”
Macanese hoteliers are not unduly worried, banking on the fact that the overall Chinese outbound segment is still booming.
Lei added that the novelty of Macau’s casinos would still lure the Chinese.
– Read more in TTG Show Daily – IT&CM China
