Issue #119 - Experiencing the Here & Now of Chinese Tourism in Macau!
Behind the scenes of 2023's hottest destination for Chinese tourists.
Welcome to issue 119 of Asia Travel Re:Set.
Yesterday, as the October Golden Week kicked off, 158,633 visitors arrived in Macau. An average of 100,000 daily tourists is forecast this week.
Tourism density is eye-watering. Macau is only 33.3 sq km in size. Visitors this week will easily outstrip its population of 680,000.
So let’s follow that train of thought…
Thanks for checking-in.
- “IN THE NEWS”
- Experiencing the Here & Now of Chinese Tourism in Macau!
Behind the scenes of 2023’s hottest destination for Chinese tourists.
- Reflections on the Hotel Recovery in South East Asia
In conversation with Jesper Palmqvist of STR CoStar.
“IN THE NEWS”
"GTEF is becoming the Davos of Tourism," said Zurab Pololikashvili, World Tourism Organization Secretary-General, at the the 10th Global Tourism Economy Forum in Macau. The event attracted 1000 delegates, including tourism ministers and leaders from the China Tourism Academy, UNWTO, World Travel & Tourism Council and Pacific Asia Travel Association. It was a pleasure sharing the stage with Xu Jing, Vice Chairman, Global Tourism Economy Research Centre, to discuss The New Features of Chinese Outbound Tourism. Watch the discussion HERE (from 4 hrs, 47 mins, 47 secs).
Which countries in Asia Pacific successfully align their appeal as a study destination with their visitor and consumer economies? Enjoyed joining Sarah Todd and Martijn van de Veen on the ICEF podcast to assess issues shaping the outlook for education, travel and economics across Asia Pacific. Listen here (discussion begins at 12 mins).
Enjoyed chatting with Alex Irwin-Hunt, Global Markets Editor at fDi Intelligence, at GTEF. As well as writing this excellent article, Chinese tourists are back, but for now they stay local, Alex chaired one of the conference’s best panels, Redefining Tourism Investments: From Private Equity to Venture Capital Acceleration (starts at 48 mins).
Experiencing the Here & Now of Chinese Tourism in Macau!
In the first 8 months of 2023, Macau welcomed 17.6 million visitors, including 11.8 million from mainland China and 4.8 million from Hong Kong. Making night tourism more exciting for an increasingly young visitor base is a key focus in 2023.
“6225 metres” says a sign as we enter the underwater tunnel part of the Hong Kong-Zhuhai-Macau Bridge. Extending for 55km, this marquee infrastructure project aims to improve the flows of people, products and technology and boost consumption and tourism in the Greater Bay Area, a conjunction of 9 southern Chinese cities, plus Hong Kong and Macau.
It is a spectacular 40-minute drive. Emerging from the tunnel on a sunny day, the Hong Kong skyline recedes, and Macau’s skyline appears. The bridge opened in late 2018, and was yet to deliver the expected volumes of day-trippers and weekend-breakers to Macau before the Covid curtain came down.
Inside the vast immigration hall at end of the bridge are 40 clearly channeled passport counters and auto-gates. Although only five are in use when I arrive, full capacity will be required during the Chinese Golden Week. So far in 2023, around 79% of mainland visitors arrived by land border or across the bridge.
It’s my first visit to Macau since 2010, and I’m frequently asked what has changed. The answer is 3-fold. There are more casino resorts and more diverse entertainment options. And the demographic seems younger.
“The new generation of Chinese travellers is seeking memorable experiences with the greatest value,” says Wilfred Wong, Executive Director of Sands China. “After two decades of development, we want to offer the best-of-the-best services. Macau standards of quality hospitality should be viewed as a trendsetter worldwide.”
High-Octane Hotel Recovery
It’s not just a cliche to say tourism is booming in Macau. It really is. Since it fully reopened in January, hotel rates and occupancies have climbed fast.
In July (summer school holidays in the mainland), average occupancy at Macau’s 94 hotels and resorts (totalling 42,000 rooms) was 89.4%. In July 2022, it was 38.3%. From January-August this year, the average hotel room rate for its 35 5-star properties was MOP1472 (USD183), compared to MOP889 (USD110) in the same 2022 period.
There is still catching up to do. Across the 2019 calendar year, the average 5-star rate was MOP1644. That said, October and December traditionally bring a surge-price uplift, so the end-of-2023 rate comparison will likely be closer than now.
“Tourism comprises almost half of our GDP, and while tourism has been very successful in recent years, the pandemic showed how vulnerable our economy is to shocks,” says Maria Helena de Senna Fernandes, Director of the Macao Government Tourism Office. In response, Macau’s “Moderate Economic Diversification” strategy places tourism at the heart of future growth, while courting investment in adjacent sectors, notably health and wellbeing, MICE, cultural, musical and sports events.
Ramping Up Residencies
The first billboard signs I spot from the escalators of the immigration hall are for a concert by K-pop band BamBam and a run of the evergreen musical, Sound of Music. Macau is investing heavily in night-time attractions to attract youthful tourists and families whose experiential interests reside beyond its casinos.
Last December, Macau’s 6 casino resort operators - MGM Grand Paradise, Galaxy Casino, Venetian Macau, Melco Resorts, Wynn Resorts and SJM Resorts - received new 10-year operating licences on condition they invest large portions of their gaming receipts into non-gaming entertainment, dining, cultural and themed attractions.
Developing a year-round concert schedule is central to reanimating Macau’s nightlife. The event I am here for, the Global Tourism Economy Forum, takes place at Galaxy Macau, where Blackpink played to 30,000 fans across two nights in May.
The hottest tickets in town are Las Vegas-style residency shows. Cantopop’s premier stars, like Aaron Kwok, Hacken Lee and Joey Lung, play sell-out weekend residencies at the modern arenas of Studio City, The Londoner, Venetian Macao and Lisboeta. Wynn Palace recently announced a partnership with Broadway Asia to produce “a ground-breaking resident show, which will be first-of-its-kind in the world.”
Demand for tickets is voracious, says Wilfred Wong: “Jackie Cheung played some concerts recently and broke ticket records. Eason Chan is coming, and that could also be record-breaking.”
Macau Becomes London, Paris & Rome
The window in my room (one of 1,400 at MGM Cotai) frames a view of Wynn Palace, where a cable car circles a lake with choreographed dancing fountains. It looks spectacular - and is very popular - at night.
I take an evening walk across the street to The Londoner - one of a triumvirate of destination-themed resorts. The Venetian, featuring the Rialto Bridge, and The Parisian, fronted by the Eiffel Tower, are opposite.
Inside The Londoner, which was opened by David Beckham, who co-designed some of the suites, a UK-only soundtrack features Amy Winehouse, Rolling Stones and The Police. There are statues of Henry XIIIth, Queen Elizabeth 1st and Winston Churchill, plus real-life Beafeaters and a Changing of the Guard ceremony. Red telephone boxes draw the selfie crowds, as do a life-sized London bus with street scenes playing in the windows and an outside stack of teacups hand-painted with UK landmarks. A highly anticipated Harry Potter exhibition opens shortly.
Outside on a humid night, tourists take single, couple and group shots against an exterior replicating the Palace of Westminster and Big Ben. An elevated terrace affords influencer-friendly frames of the Eiffel Tower. The entire area is bathed in colourful multimedia lighting and music. Almost everyone seems to be smiling.
It’s 8.30pm, and the malls, restaurants and replica landmarks are packed. I circle back through the casinos of The Londoner, The Venetian and MGM Cotai. Tables and slots across the expansive floors are also busy, albeit with a slightly older crowd.
Macau’s gambling tourists continue contributing to the profits that will fund a future tailored ever-more to the desires of Chinese Gen Zs in this shape-shifting destination.
Reflections on the Hotel Recovery in South East Asia
South East Asia’s shifting hotel economics are being shaped by multiple factors. Is this a transitional period, or a new hospitality landscape defined by higher rates?
On this week’s The South East Asia Travel Show, we welcom Jesper Palmqvist, Senior Director, Asia Pacific, STR CoStar, to tackle the issues underpinning the hotel recovery, the ongoing challenges and risks and the outlook for Q4 of 2023 and 2024.
Some really thought-provoking insights.
Listen to Reflections on the Hotel Recovery in South East Asia in 2023, with Jesper Palmqvist, STR, here:
Or search for The South East Asia Travel Show on any podcast platform
And, that’s a wrap for Issue 119.
The Asia Travel Re:Set newsletter will be back on 15 October.
Until then, find me at LinkedIn and The South East Asia Travel Show.
Happy travels,
Gary