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Macau Peninsula hotels face pressure as Zhuhai and Hengqin draw guests

By Newsdesk

Macau Peninsula properties saw softer performance in the first half of the year as new room supply and shifting visitor habits diverted demand across the border

Hoteliers are now targeting a summer rebound by launching extended-stay promotions and tracking international marketing campaigns across Southeast Asia.

Macau Peninsula hotels have seen softer occupancy and lower room rates in the first half of the year, as new hotel supply and a shift in visitor travel patterns diverted some demand to Zhuhai and Hengqin. Macau Hotel Association president Jocelyn Wong Suk Yan told Macao Daily that hotels in areas such as ZAPE/NAPE and the old districts of Macau Peninsula had been more affected by the changing market environment. Their average occupancy in the first half of the year stood at about 80 per cent, while room rates fell by 5 per cent to 6 per cent year-on-year.

Wong said the local hotel market had been affected by the opening of several new properties, which continued to expand the city’s room supply. At the same time, more visitors have been choosing to stay in hotels in Zhuhai and Hengqin, diverting part of the customer base that would previously have stayed in Macau. The impact has been less visible in Cotai, where higher-end hotels have maintained relatively stable occupancy, she said. The difference points to a more uneven recovery across Macau’s hotel market, with Peninsula hotels facing stronger pressure from both supply growth and cross-border accommodation options. During the three-day Dragon Boat Festival holiday, heavy rain also weighed on hotel demand, particularly for properties located around local communities. Wong said occupancy at such hotels was below the level recorded in the same period last year and remained at about 80 per cent.

Shifting demographics and international outreach

Mainland Chinese visitors remain the main customer group for Macau hotels. Wong said nearly 40 per cent of guests were short-haul travellers from Zhuhai, Hengqin and other mainland cities in the Greater Bay Area, while long-haul mainland visitors accounted for about 20 per cent. Among international markets, South Korean visitors currently rank first, followed by travellers from places such as the Philippines. Wong said international visitors tend to stay longer because they travel from farther away, making them an important target segment for the hotel sector.

To attract more overseas guests, hotel operators are following the Macao Government Tourism Office’s promotional efforts abroad. Wong said the industry plans to join tourism promotion activities in Thailand, Indonesia and Malaysia in August, with the aim of signing cooperation agreements with local travel agencies and further developing Asian visitor markets.

Summer outlook and community events

Looking ahead to the July-August summer holiday season, Wong expects Peninsula hotels around local communities to reach about 90 per cent occupancy. However, she said room rates are unlikely to rise sharply because of the increase in available hotel supply. Hotel operators have prepared a range of promotions for the summer period, which usually attracts more family travellers. These include discounts for longer stays, with lower rates for second and third nights, as well as accommodation packages bundled with food and beverage offers. Wong also called for more concerts, sports events and other activities to be held in community areas, saying such events could help bring visitors into local districts and encourage t

https://macaubusiness.com/macau-peninsula-hotels-face-pressure-as-zhuhai-and-hengqin-draw-guests/