According to recent research by Jones Lang LaSalle Hotels, Hong Kong and Macau hotel occupancy and room rates are both Special Administrative Regions (SARs) Despite the addition of approximately 8,000 new rooms and double-digit rate increases over the last two years, occupancy rates in Hong Kong were above 80% for 2005 and 2006.
In Macau, occupancy and room rates for January – April of 2007 are both higher than for the same period last year. In Hong Kong, occupancy rates for five-star hotels has decreased slightly to the high 70% range, while room rates have continued to increase. Hong Kong five-star hotel rates are the highest in the region. Room rate increases of 10-15% annually are predicted for the intermediate term, while occupancy rates are expected to register moderate increases.
Ms. Chee Hok Yean, Executive Vice President of Jones Lang LaSalle Hotels in Asia “Hong Kong’s tourism and hotel industries are well supported by the SAR’s position as one of Asia’s premier business and financial centers, international airline hub and gateway to the Pan-Pearl River Delta region. “ The MICE (Media, Internet, Communications, Entertainment) is continuing to expand as Hong Kong gains reputation as a key Asian destination, according to Ms. Chee.
With mainland China the major source of tourists in 2006, Hong Kong should receive a boost in this market from additional extensions of the Individual Visit Scheme (IVS) to more cities in mainland China. Macao, the only place within the People’s Republic of China where casinos are legal, is seeing a growing number of Chinese visitors. As this city is made over, a solid basis for growth is being established.
“The new Macao will feature new tourist attractions, improved transport infrastructure, large-scale entertainment and gaming developments, new MICE facilities and world-class accommodations,” commented Ms. Chee. She added that an expected increase in international arrivals should increase demand for accommodation as more travelers will stay overnight or extend their stay.
Approximately 37,600 new hotel rooms are being built in Macao or being planned for future years, leaving the possibility of tripling the number or rooms currently available. International-standard hotels coming into Macao include the Venetian Macao, Shangri-La, Traders Hotel, Four Seasons Hotel, Sheraton, St. Regis, Hilton, Conrad, InterContinental, Holiday Inn, Sofitel, Mandarin Oriental, Marriott and Ritz Carlton.