New hotels opening this year are adding accommodation and event capacity to the destination, putting a downward pressure on rates. By Prudence Lui
With monthly gaming revenues down for nine months since June 2014, Macau’s integrated resorts are tuning up their promotional efforts to increase non-gaming revenue, specifically from business event groups.
Hongkong-based Vigor Tours’ manager of Greater China, Coral Wu, told TTGmice that Macau hoteliers have been dangling “generous offers” for MICE groups, such as buy-one-get-one-free ferry tickets.
Wu noted that “these aggressive promotions” started early this year and had intensified in recent months.
“I hardly saw such practices last year,” she said, adding that the Macau Government Tourist Office’s ongoing Incentive Travel Stimulation Program provides additional help for the trade in courting more business event groups.
Although the massive 3,896-room Sheraton Macao Hotel, Cotai Central saw an 80 per cent leap in group business last year over 2013 and hosted 55,000 delegates attending 228 events in 2014, its promotional engine is still revving for more MICE business.
Corinne Janssen, director of sales, associations & sales operations, said: “We have just launched a new MICE offer, 3rd Night Free or Dinner on Us, in partnership with Sands Resorts Cotai Strip Macao to encourage visitors to stay longer in Macau.
“While it is still too soon to say whether big conferences and incentives will get a boost (from this promotion), we have so far generated a lot of interest because it is such a rich offer for MICE delegates.”
The 3rd Night Free or Dinner on Us gives delegates the option to stay an extra day in Macau or enjoy dinner with the hotel’s compliments. To enjoy this offer, planners must contract at least 10 rooms, up to a maximum of 500, for two consecutive nights as well as spend a minimum HK$1,600 (US$206) in banquet F&B per room, per stay. Contracts must be inked before May 31, 2015 for arrivals between April 1 and July 2, and between August 30 and September 30 this year.
Janssen added that Sheraton Macao Hotel, Cotai Central expects to host more than 250 events this year, and that she isn’t too concerned with Macau’s faltering gaming business.
“The property has never been too reliant upon gaming. Since opening, our focus has been on MICE and leisure business,”she explained.
Industry players said the rise in MICE-focused hotel promotions was also a result of increasing competition in the hotel sector, thanks to several new hotel openings this year.
New properties that are set to open for business this year include JW Marriott Hotel Macau, The Ritz-Carlton Macau and The St. Regis Macao, Cotail Central (see Need to know, page 32). These hotels are outfitted with function rooms.
According to Macao Trade and Investment Promotion Institute (IPIM), the destination currently has over 28,000 hotel rooms and 170,000m2 of meeting space.
IPIM informed TTGmice that another 21 hotels are under construction and these will raise Macau’s capacity to over 42,000 rooms in the next few years. These developments also include new meeting spaces and attractions such as a facility for broadway performances at the expanded Galaxy Macau, and Asia’s tallest ferris wheel at 130m at Studio City Macao.
“All these new elements are building Macau up as a perfect destination for MICE and leisure,” said a IPIM spokesperson.
Bruno Simões, CEO of DOC DMC, revealed that last year many large hotels with more than 500 rooms had rejected group bookings from event planners for more than 20 rooms over weekdays.
“Now, all these hotels can give me more than 80 rooms!” he said. “With the new (hotel) openings, competition will definitely increase. I anticipate drops in rates of more than 25 per cent after September 2015. Planners should grab the opportunity to host events in Macau in 2015 and 2016.”
Antony Box, director of sales and marketing, Macau Hong Kong Sales Office, Grand Coloane Resort, said business performance so far this year isn’t strong.
“We are not confident as a hotel that, given the current business climate, things will pick up quickly…at least not in the first half of 2015.
“This may be due to the extra room inventory on the market resulting from the release of casino room blocks and new hotel openings by mid-year. Hotels in Zhuhai are coming in to compete due to extended cross-border opening times.
“I expect competition (among venues/hotels) to worsen with new openings like Studio City and the expansion of Galaxy this year.”
Janssen, however, is taking the hotel boom in her stride, saying the new openings are “coming of age” for Macau and are beneficial to the destination.
“These new attractions give MICE delegates a good reason to keep returning to explore something different. With new room inventory, rates will remain extremely competitive, especially in comparison with other first-tier Asian cities,” she said.
Although MV Destination’s general manager, Clemson Lo, is unimpressed by the ongoing intensified hotel promotions because business events take “years of advanced planning” and will not be boosted by such offers in the short run, he expects to benefit from downward rate pressure brought on by the rise in new room inventory.
Lo expects rate to dip some 10 to 15 percent.
Ideas – A three-day incentive tour of Macau’s key draws
DAY 1
Start the tour in the afternoon with an art and culture excursion. Activities include taichi, fan dance, calligraphy and traditional Chinese arts classes.
Come evening journey into Taipa Village in search of a dining venue that appeals to your taste and budget. The destination offers a variety of restaurants, with Rua do Cunha – a narrow pedestrian street in Taipa Village – in particular offering a slew of souvenir shops, restaurants and dessert shops.
DAY 2
Choose to begin your morning with a slow stroll through the Macau Giant Panda Pavilion at Seac Pai Van Park in Coloane or by feeding the speed demon inside you with a go-kart race at the Coloane Karting Track in Cotai District.
In the afternoon, experience the sights, tastes and sounds of the Historic Centre of Macau, a UNESCO-listed world heritage.
Later, indulge in an authentic Portuguese dinner at the notable Macau Military Club. The venue dates back to 1870 and was reopened as a restaurant in 1995. End the night on a high note by catching the spectacular House of Dancing Water show in the City of Dreams.
DAY 3
Make time for golf at the 19-hole Caesars Golf Macau, located at the southern end of Cotai District. It’s the only semi-private golf course open to both members and visitors in Macau. If golf is not your cup of tea, retreat to the club’s spa where spa treatments are on offer.
Itinerary by Macau Government Tourism Office
Need to Know
Galaxy expands
Galaxy Macau integrated resort will throw open the doors to two new hotels on the 27th this month.
JW Marriott Hotel Macau, the brand’s largest property in Asia, offers 1,015 rooms while The Ritz-Carlton Macau has 250 suites.
Both will boost the integrated resort’s MICE appeal with a suite of event spaces. JW Marriott Hotel Macau offers planners more than 2,700m2 of function space including a pillarless Grand Ballroom. The Ritz-Carlton Macau houses a pillarless Grand Ballroom and two meeting rooms.
Improved air access into Macau
Air Macau has increased the frequency of its Osaka and Bangkok services. The carrier now operates daily flights to and from Osaka, and thrice a week to and from the Thai capital.
Air access from mainland Chinese cities are also up. Air China launched a Beijing-Macau route on March 5 while China Southern Airlines has plans to debut a Wuhan-Macau service.
A fine way to arrive
The new TurboJET Premier Plus service, launched on March 1, offers a complimentary door-to-door shuttle service for Premier Grand Class/Premier VIP Cabin passengers travelling from Hong Kong (Sheung Wan) to Macau Maritime Ferry Terminal.
Available on any sailings between 09.00 to 21.00, the shuttle takes guests from Macau Ferry Terminal to any destination in Macau.
To utilise this service, simply book in advance and upon clearing immigration, proceed to the Macau Premier Shuttle Service meeting point in the arrival hall. The service departs 15 minutes after vessel arrival.
More to see and do at Sofitel Macau At Ponte 16
Sofitel Macau At Ponte 16 is partnering Hong Kong 3D Museum to roll out the destination’s first large-scale 3D museum in mid-2015. The 1,500m2 museum will feature more than 150 photography points in six theme zones, offering visitors a chance to pose for interesting photographs with various exhibits and 3D paintings. Sensory elements such as lighting effects, analog sounds and props will up the fun factor.
The hotel’s artistic venture includes a limited-time collection of art pieces by French sculptor Mickaël Obrénovitch. As part of the Le French May festival, the hotel lobby will display five to six spectacular tree trunk sculptures from now until June 30.
The St. Regis to rise soon in Macau
Scheduled to open in 3Q2015, The St. Regis Macao, Cotai Central will add 400 rooms and suites to the mega development by Sands China.
Rooms will range from 53m2 to 477m2 in size, and meeting planners will have access to nine meeting spaces totalling 599m2. The Astor Ballroom can accommodate 350 guests for banquets or 572 pax in a theatre setup.
Other facilities at the hotel include the legendary St. Regis Bar and an outdoor pool with 2,457m2 of deck space that houses private cabanas.
The hotel boasts a seamless connection to Sheraton Macao Hotel.
